US companies pledge to expand investment in Vietnam

Vietnam has maintained supply chains over the past two years

By February 2022, the US had poured more than US$10.3 billion into Vietnam, ranking 11th among the 141 countries and territories investing in the country. US investment projects mainly focus on southern localities, such as Ho Chi Minh City and Binh Duong and Ba Ria-Vung Tau provinces. Among the sectors luring US investment, accommodation and catering services took the lead with US$4.46 billion, accounting for 43.1 percent of total capital. The manufacturing and processing sector came second, followed by water supply and waste treatment.

Virginia Foote, Vice President of the American Chamber of Commerce in Hanoi (AmCham), said Vietnam had achieved important improvements in its business and investment environment and maintained supply chains over the past two years. In addition, the Vietnamese government had devised numerous solutions to support businesses in their trade and production activities, Foote said.

Economists attribute Vietnam’s investment attractiveness to government efforts. Despite the complicated developments of the Covid-19 pandemic, many large US companies have maintained operations, expanded investment and sought new opportunities in Vietnam, among them Apple, Google, Netflix, Dell, Intel and Coca Cola.

Michael Michalak, regional managing director of the US-ASEAN Business Council (USABC), said US companies appreciate the Vietnamese government’s efforts to reform administrative procedures and improve the investment environment. They see Vietnam as an attractive destination and have pledged to expand their operations in the country, Michalak said.

Given that the world economy is gradually recovering and countries are competing in supply chains to increase investment attraction, a fair, transparent, predictable regulatory environment that values innovation is the best way for Vietnam to attract new investment flows, Foote emphasized.

At the US-Vietnam Business Summit 2022 held on March 8 in Hanoi, many US companies expressed their hope that the Vietnamese government would continue to improve its business environment through reforming administrative procedures and tax policies, developing logistics infrastructure, promoting digital transformation and enhancing the quality of human resources.

Minister of Planning and Investment Nguyen Chi Dung said Vietnam will continue to review and improve institutions, mechanisms and policies, speed up reforms of administrative procedures, ensure macroeconomic stability and control inflation in order to improve its business and investment environment. In addition, the country will focus on promoting public investment disbursement, especially for key infrastructure projects, strengthening equitization and improving efficiency of state-owned enterprises, and adopting mechanisms and policies to increase attraction of private and foreign investment.