US investors pin high hopes on Vietnam

06:00 | 02/03/2022 Economy

(VEN) - US investors are targeting new growth goals in Vietnam given the recent easing of business travel and favorable forecasts for the Vietnamese economy.

us investors pin high hopes on vietnam
Vietnam has relaxed pandemic prevention and control measures to facilitate a return of foreign investors

Planned expansion

Many large-scale projects implemented by US investors have made an important contribution to Vietnam’s development, helping the country participate more deeply in the global supply chain. The US currently ranks 11th among the 138 countries and territories investing in Vietnam, with 1,134 projects worth US$9.72 billion.

In 2021, trade turnover between Vietnam and the US reached about US$100 billion, with the US being Vietnam’s largest export market. Given pandemic challenges, Vietnam’s robust economic results drew praise from US investors.

Mary Tarnowka, executive director of the American Chamber of Commerce (AmCham) in Vietnam, said AmCham Vietnam members are on their way back to trade and production activities and they are optimistic about the Vietnamese market. They have planned or are considering expanding investment in Vietnam.

Thanks to high Covid-19 vaccination rates, Vietnam has relaxed pandemic prevention and control measures, creating favorable conditions for foreign investors, Tarnowka emphasized.

Adam Sitkoff, executive director of AmCham Hanoi, said that even during these tough times, US companies in Vietnam intensified efforts to help address society’s needs in order to support their members, communities and Vietnam’s Covid-19 response and economic recovery. US investors have contributed significantly to the transformation and growth of Vietnam’s economy, Sitkoff said.

us investors pin high hopes on vietnam
Vietnam has reached high Covid-19 vaccination rates

Vietnam urged to further ease travel

Last year was challenging for every business sector. Companies faced challenges in terms of operations, supply chains and mobility. The economic implications of the pandemic for Vietnam are serious and will impact foreign investors in general and US investors in particular for a long time.

However, the government targets GDP growth of 6-6.5 percent this year, while the World Bank expects Vietnam’s GDP to rebound to 5.5 percent.

US investors commended the Vietnamese government’s recent decisions to facilitate cross-border travel and encouraged additional actions to reduce the burdens on inbound and outbound international travel by both foreigners and Vietnamese citizens. Safety is a top priority, but US investors hope to see more predictable and streamlined procedures for their experts, incoming investors and technical support teams to maintain operations and facilitate expansion and new investment.

US companies are looking forward to working with Vietnamese firms to boost digital transformation and startups. In particular, the two governments are expected to begin efforts towards a bilateral trade agreement that would improve investment and trade flows, assist sustainable supply chains and improve business conditions in order to strengthen the private sector and ensure sustainable socioeconomic development.

Vietnamese and US companies need to learn about each other’s markets, share cooperation opportunities and restore economic activities in the new normal.

Thanh Thanh