VietNamNet Bridge - Billionaire Wilbur Ross, hailed as someone who knows how to help businesses achieve success, had an unsuccessful experience in Vietnam 10 years ago.


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Billionaire Wilbur Ross



Nikkei has described him as an expert about Asia and a pioneer in making investment in Vietnam’s garment industry.

Investments

Ross first came to Vietnam in 2001 as he confirmed at an investment promotion conference held in New York in early 2016. At that time, he saw Vietnamese riding bicycles.

The working visit was the start of a series of subsequent cooperation agreements signed by corporations owned by Ross and Vietnam’s Phong Phu Corporation.
Billionaire Wilbur Ross, hailed as someone who knows how to help businesses achieve success, had an unsuccessful experience in Vietnam 10 years ago.

ITG-Phong Phu, the textile-dyeing-garment complex, a product of cooperation between the US ITG and Phong Phu, was established in late 2006 with investment capital of $80 million, in which ITG contributed 60 percent of capital.

Later, WL Ross Co, also owned by Ross, signed an agreement on the investment deal in the real estate sector capitalized at $100 million. The US conglomerate committed to become the strategic investor of Phong Phu when the enterprise got equitized in early 2008.

Viewpoints

With good understanding about Vietnam and investments in the country, Ross many times raised his voice in defense of Vietnam’s interests before the US Congress. 

In a letter from ITG to the US Senate’s Finance Committee dated July 12, 2006, Ross called for accelerating the process of granting permanent normal trade relations (PNTR) to Vietnam.

He wrote that the delay in granting PNTR to Vietnam would hamper the process of Vietnam carrying out reforms to become a market economy and this was contrary to the US interests.

He also protested against the imposition of anti-dumping duties on Vietnam’s garment exports, saying that this would not protect US interests.

Failure

In December 2011, ITG-Phong Phu released a notice on the decision by the board of management that the corporation would stop operations until December 2012 to settle the differences in doing business between ITG and Phong Phu.

The factory and machines were left idle for three years before the Da Nang City People’s Committee sold them to 8-3 Textile Factory.

Vietnam today

Vietnamese Deputy Minister of Foreign Affairs Bui Thanh Son said the historical conditions, policy framework and business environment are different.

“Vietnam’s investment environment in the last few years has improved significantly. It has become more transparent and meets international standards,” he said.

“Businesses are very creative and if they see opportunities, they will return,” he said.

When visiting in 2015, the 200th richest person in the US showed his optimism about the opportunities in Vietnam and its economic prospects.


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