High-quality investments insert Vietnam into global supply chains

American companies are inserting Vietnam into the global supply chain, while creating quality jobs and helping the country become more productive and efficient.

High-quality investments insert Vietnam into global supply chains

US investors registered US$141.12 million into Vietnam in the first quarter of 2019

Rising high-quality investment inflow, especially from the US and EU, has helped Vietnam better integrate into the global supply chains.

According to Amanda Rasmussen, chairwoman of the American Chamber of Commerce (AmCham) in Ho Chi Minh City, American companies are inserting Vietnam into the global supply chain, while creating quality jobs and helping the country become more productive and efficient.

More and more American and European firms are setting up facilities in Vietnam, whose products are mainly exported worldwide.

Among the investors is American Universal Alloy Corporation (UAC), a leading global manufacturer of aircraft components for aerospace companies such as Boeing, Airbus, Embraer, Bombardier and their associated supply chains.

UAC held an opening ceremony for an aerospace component factory in Danang in late February this year. With the registered investment of US$170 million, the ¬factory aims to manufacture and install aerospace ¬components from aluminium alloys and composite in ¬service of the industry. It is capable of manufacturing and assembling around 4,000 out of five million aircraft ¬components, all for export.

Kevin Loebbaka, chief operations officer of UAC, expressed hopes that the factory will play an important role in the strategy of providing components to its partners worldwide. This is its first facility in Vietnam and Asia as a whole to serve the global aerospace industry.

Alton Industry Company, another American business, last month also registered to invest over US$87 million into building a factory to manufacture air compressors and robot vacuum cleaners in Danang Hi-Tech Park.

Beside Danang, southern cities and provinces like Ho Chi Minh City, Dong Nai, and Binh Duong are also attracting a large number of American and European investors.

Dong Nai province, for example, has 27 American investors, mainly operating in the industrial production with total registered capital of over US$207 million, and more than 70 projects worth over US$2.8 billion from 13 European countries, focusing on industry and machine equipment production, spare parts, electronics, and garment and textiles.

 

In Dong Nai, 80 percent of goods produced by businesses are exported, with the remaining used for domestic consumption.

Positive outlook

US Consul General in Ho Chi Minh City Mary Tarnowka said US firms want to invest in Dong Nai’s industry, infrastructure, aviation, and high technology sectors. A large number of American firms will come to Dong Nai in the near future to study the local investment environment, she revealed.

AmCham’s Rasmussen said the prospects for US investment in Vietnam are good and improving. Currently, many American companies are planning to move to the country, partly because of the special tariffs imposed on US$250 billion worth of American imports from China.

Data from the Foreign Investment Agency under the Ministry of Planning and Investment showed American investors registered US$141.12 million into Vietnam in the first quarter of 2019. As of March 20, 2019, the US had 924 projects in Vietnam with the total registered capital of US$9.13 billion.

The positive move was also forecast for the investment inflow from the EU. According to Vice Chairman of the European Chamber of Commerce (EuroCham) in Vietnam Tomaso Andreaatta, the planned signing of the EU-Vietnam Free Trade Agreement (EVFTA) will strongly increase investment attraction from European businesses.

Besides investing in infrastructure and high technology, EU firms are looking to join projects on smart city building and green growth, he said.

Carlos Dominguez Agulleiro, deputy head of Spain’s Economic and Commercial Office in Ho Chi Minh City, said the number of Spanish businesses deciding to invest in Vietnam is increasing.

Sharing the same view, Michele D’Ercole, chairman of the Italian Chamber of Commerce in Vietnam, said the investment flow from Italian businesses in Vietnam will surge this year.

Hanoitimes

 
 

Other News

.
VIETNAM BUSINESS NEWS OCTOBER 16
VIETNAM BUSINESS NEWS OCTOBER 16
BUSINESSicon  16/10/2021 

Revenue to state budget increases over 10 percent

Hanoi authorities to meet FDI firms, ease their concerns
Hanoi authorities to meet FDI firms, ease their concerns
BUSINESSicon  16/10/2021 

The administration of Hanoi is scheduled to hold a dialogue with foreign invested businesses on October 19 to seek ways to tackle difficulties facing them amid the COVID-19 pandemic.

Where is Vietnam in the technology industry and global supply chain?
Where is Vietnam in the technology industry and global supply chain?
FEATUREicon  16/10/2021 

At the talks “Why Vietnam” held recently by the Ministry of Information and Communications, experts affirmed the significant role and position of Vietnam in the technology industry as well as global supply chains.

US awards grant to local firm to construct energy storage system
US awards grant to local firm to construct energy storage system
BUSINESSicon  16/10/2021 

The US Consulate General in HCM City on October 15 awarded a 2.96 million USD grant to AMI AC Renewables to construct a battery energy storage system pilot project in Vietnam.

Vietnam’s electric vehicle index announced for first time
Vietnam’s electric vehicle index announced for first time
BUSINESSicon  15/10/2021 

Vietnam’s electric vehicle index (EVI) has been announced for the first time, aiming to help enterprises in the value chain make decisions on production and business.

Pork prices fall, historic price crisis repeats
Pork prices fall, historic price crisis repeats
BUSINESSicon  16/10/2021 

“Merchants yesterday agreed to buy pigs at VND30,500 per kilogram of live weight, but today they lowered the price to VND29,500,” Hoang Van Chung, a farmer in Tuyen Quang, said.

Remittances steady as lenders apply fresh transfer services
Remittances steady as lenders apply fresh transfer services
BUSINESSicon  15/10/2021 

Remittance flows from Vietnamese expatriates working abroad are predicted to remain resilient throughout the rest of the year, with the country’s central bank keeping its policy steady for now.

Haiphong to build free trade zone
Haiphong to build free trade zone
BUSINESSicon  15/10/2021 

The northern port city of Haiphong envisions setting up an inner-city free trade zone to drastically accelerate the city’s development.

Next six months vital for economic recovery: experts
Next six months vital for economic recovery: experts
BUSINESSicon  15/10/2021 

PM Pham Minh Chinh has chaired a webinar discussing Vietnam's measures in boosting post-pandemic economic recovery, adapting to the COVID-19 pandemic, overcoming economic disruption and strengthening locality-to-locality connectivity.

Govt projects GDP growth at 6%-6.5% next year
Govt projects GDP growth at 6%-6.5% next year
BUSINESSicon  15/10/2021 

The Government has targeted the country’s gross domestic product (GDP) growth at 6%-6.5% in 2022 despite the lingering challenges caused by the Covid-19 pandemic. 

Domestic groups move over to buyer’s side in M&A deals
Domestic groups move over to buyer’s side in M&A deals
BUSINESSicon  15/10/2021 

Vietnamese groups are becoming more active in acquiring other businesses, while overseas investors are seeing themselves hindered amid continued travel restrictions.

Bad debt trading platform to start operation
Bad debt trading platform to start operation
BUSINESSicon  15/10/2021 

The bad debt trading floor of Vietnam Asset Management Company (VAMC) is set to begin operation today (October 15).

More than $10 billion per year to develop the power sources and grid in the 2021-2030 period
More than $10 billion per year to develop the power sources and grid in the 2021-2030 period
BUSINESSicon  15/10/2021 

The demand for investment capital for the development of power sources and grids averages US$10-11.5 billion per year by 2030.

IMF forecasts Vietnam's GDP to see highest growth in ASEAN 5 group
IMF forecasts Vietnam's GDP to see highest growth in ASEAN 5 group
BUSINESSicon  15/10/2021 

The International Monetary Fund (IMF) has forecast Vietnam’s GDP to grow at around 3.8% this year, higher than that of its regional peers, Malaysia, Thailand, the Philippines, and Indonesia.

VIETNAM BUSINESS NEWS OCTOBER 15
VIETNAM BUSINESS NEWS OCTOBER 15
BUSINESSicon  15/10/2021 

MoIT vows support for Samsung, suppliers to maintain supply chain

One-year EVFTA: major European investors pour billions of dollars into Vietnam
One-year EVFTA: major European investors pour billions of dollars into Vietnam
BUSINESSicon  15/10/2021 

The Government has reported to the National Assembly about the implementation of EVFTA (EU-Vietnam FTA) over the last year.

VN reports public debt reaches VND3.7 quadrillion, plans to borrow VND571 billion next year
VN reports public debt reaches VND3.7 quadrillion, plans to borrow VND571 billion next year
BUSINESSicon  15/10/2021 

The Government’s report says that if the GDP in 2021 is below expectations, this will affect state budget overexpenditures as well as the national public debt and foreign debt safety indexes.

Real estate market: regulations inconsistent, market in deadlock
Real estate market: regulations inconsistent, market in deadlock
FEATUREicon  15/10/2021 

Real estate firms are looking forward to a new document to settling legal bottlenecks which have caused the property market to come to a standstill for the last two years.

VN businesses prepare to weather the storms of Covid, adapt to new normal
VN businesses prepare to weather the storms of Covid, adapt to new normal
FEATUREicon  15/10/2021 

All businesses have to struggle hard to survive the pandemic. However, they are keeping calm and optimistic, because the ‘alluvium will come after the floods’.

Curbs fail to faze South Korean M&A
Curbs fail to faze South Korean M&A
BUSINESSicon  14/10/2021 

According to data from MergerMarket, which is a business development tool designed specifically for the M&A sector, South Korean investors have carried out 69 M&A deals in Vietnam since 2005, with a total value of $5.1 billion.

 
 
 
Leave your comment on an article

OR QUICK LOGIN