US Business Giants Forge Deeper Ties with Vietnam Amidst Record Delegation

From March 18 to 21, the US-ASEAN Business Council (USABC) led a delegation of senior executives from 50 leading US companies to Hanoi for its annual Business Mission to Vietnam, marking the largest delegation of US companies to Vietnam since the historic elevation of Vietnam-United States relations to the Comprehensive Strategic Partnership (CSP).

The delegation met with government officials and key stakeholders across multiple ministries and agencies to reaffirm their commitments to supporting the Government of Vietnam’s efforts and propose further cooperation in various sectors.

These collaborations aimed to bolster Vietnam’s strategic programs, including the digital transformation program, the green transition program towards achieving net-zero commitments, and enhancing Vietnam’s position in the global supply chain by strengthening infrastructure and manufacturing capability.

Moreover, the U.S. business community sought to identify ways to support the implementation of initiatives and deliverables outlined in the Vietnam-U.S. CSP.

Business environment appreciated

At a meeting held by USABC on March 18, USABC’s President & CEO, former US Ambassador to Vietnam Ted Osius affirmed that this US business delegation to Vietnam is the largest in scale since upgrading the CSP.

"The business delegation also included the presence of representatives from the public sector in the US, demonstrating the close combination of the public-private sector in the US within the framework of a comprehensive strategic partnership," he added. "US businesses want to cooperate with Vietnam in efforts to promote Vietnam's role in the global supply chain."

U.S. Ambassador to Vietnam Marc Knapper also shared that after six months since the two countries upgraded relations, the US business delegation to Vietnam this time not only reflects the commitment of the Government but also the initiative of the US private sector, based on the CSP framework.

"Vietnam has a very important position in the global supply chain to ensure peace, security, and prosperity for the region," Ambassador said. "US businesses are interested in Vietnam and want to promote cooperation in many fields to have good products that serve the interests of the two countries. Currently is a very important time in the relationship between the two countries, towards the goal of promoting long-term relations."

Sharing the same idea, Special Representative Sarah Morgenthau from the US Department of State affirmed that the number of US businesses coming to Vietnam this time shows a new chapter in the cooperative relationship between the two countries.

According to Ms. Morgenthau, people are the foundation of this relationship. The Vietnamese community in the US is growing stronger day by day. Vietnam plays a big role in the ASEAN region. Vietnam invests in the US and creates thousands of jobs for American people. Two-way investment between the US and Vietnam is increasing.

Companies participating in the Business mission include: 3M, Abbott, AES, AIG, Amazon, Atmo, Bay Global Strategies, Bell, Chubb Life Vietnam, Coca-Cola Vietnam, Diego, Dow, Energy Capital Vietnam, Estee Lauder Companies, FedEx, Ford, GE Genova, IMSG, JP Morgan, Koch Industries, KKR, Manulife, Marriott International, Mastercard, Meta, Mondelez Kinh Do Vietnam, Organon, Pacifico Energy, PepsiCo Foods Vietnam, Pernod Ricard, Procter & Gamble (P&G), Reinsurance Group of America (RGA), Roblox, Salesforce, SAP Asia Pte Ltd, SnowBridge Capital, Suntory PepsiCo Vietnam Beverage, Tilleke & Gibbins, Viatris, VinFast Manufacturing US, Visa, Vriens & Partners, Zuellig Pharma Vietnam.

Representatives from diverse industries such as digital technology, energy, aerospace, defense, manufacturing, fast-moving consumer goods, food, and agriculture, financial services, healthcare, investment funds, and others are eager to explore new opportunities and investment potential in Vietnam. This reflects the enthusiasm of U.S. companies towards Vietnam as an attractive emerging market and investment destination.

Sharing at the meeting, US business representatives believe in Vietnam's economic prospects, appreciate the efforts of the Vietnamese government in improving the investment environment.

As a major investor in the energy market in Vietnam, Mr. Joseph Uddo, General Director of AES Vietnam said he was inspired to see that Vietnam's development orientation is meeting the business's expectations.

"We see great opportunities in Vietnam, the economy is growing rapidly, leading to demand for electricity and energy supply," he added. "The Vietnamese market has many opportunities, a population of 100 million people with a young, dynamic workforce."

Increased investment

The delegation is meeting with government officials and key stakeholders across multiple ministries and agencies to reaffirm their commitments to supporting the Government of Vietnam’s efforts and propose further cooperation in various sectors.

These collaborations aim to bolster Vietnam’s strategic programs, including the digital transformation program, the green transition program towards achieving net-zero commitments, and enhancing Vietnam’s position in the global supply chain by strengthening infrastructure and manufacturing capability.

Moreover, the U.S. business community seeks to identify ways to support the implementation of initiatives and deliverables outlined in the Vietnam-U.S. CSP.

US business representatives affirmed commitment to continue investing heavily in Vietnam in the coming time.

On the first day arriving in Vietnam, leaders of the Export-Import Bank of the United States (EXIM) and the Vietnam Development Bank (VDB) signed a $500 million Memorandum of Understanding (MOU). The agreement will support US exports to Vietnam, specifically targeting green infrastructure, climate adaptation, and broader green economy transitions.

President and Chair of US Eximbank Reta Jo Lewis said after many years of great support for the US's financial transactions with Vietnam, the bank will continue to strengthen the efforts to further improve the CSP.

Mr. Rafael Frankel, Director of Public Policy at Meta said the current position in the relationship between the two countries is based on the partnership between the two countries' businesses.

"The two countries will be true partners of each other with the optimistic prospects of the relationship," he added. "The investment future of the digital economy in Vietnam is very bright."

Mr. Frankel revealed Meta will bring many new products and services to Vietnam. "Vietnam can become the "new dragon" in Asia in the field of artificial intelligence," he noted. "If Vietnam has an open policy and develops a digital economy, AI will certainly have more opportunities to enhance its development position."

As a US business coming and looking for cooperation opportunities in Vietnam for the first time, Mr. Alex Levi, CEO of Atmo, US business specializing in providing weather forecasting services for multinational operations, believes in investment potential in Vietnam.

"Atmo chose Vietnam because businesses want to succeed in business while bringing great value to the community and society," he added. "We do not prioritize investing in any country in which just help businesses make the most money, but we want our products to bring the most value. So Atmo wants to bring value to Vietnam as soon as possible."

However, according to data from the Ministry of Planning and Investment, total US investment capital in Vietnam in 2023 only ranks 11th out of 143 countries and territories, with 1,286 valid projects with a total registered capital of $11.7 billion.

In the first two months of 2024, investors from 48 countries and territories poured capital into Vietnam, of which Singapore led with a total capital of more than $2.08 billion, accounting for 48.5 percent of total investment capital, more than 2.1 times higher than the same period in 2023. Hong Kong ranked second with nearly $525.7 million, accounting for 12.2 percent of total investment capital, nearly 5.1 times higher than the same period, followed by Japan, China. The US is still outside the list of five countries/territories investing the most in Vietnam.

Many opinions said that this position is not commensurate with the potential of the US as well as the relationship of the world's number one economy with Vietnam when it has been upgraded to the highest level.

Mr. Vu Tu Thanh, the Council’s Deputy Regional Managing Director & Vietnam Chief Representative explained that U.S. companies often invest in the form of value chains, which is not reflected in statistics provided by Vietnam’s investment ministry. They do not directly bring money into Vietnam but request their suppliers, mostly in the fields of electronics, footwear, and garments, to set up production facilities and hire laborers in Vietnam. These suppliers generate dozens of billions of USD in exports from Vietnam.

"The importance of U.S. companies to Vietnam’s economic growth and exports is far beyond the accumulative FDI statistics," Mr. Thanh said.

This year's mission also receives robust support from the U.S. government, with the participation of United States Ambassador to Vietnam Marc Knapper, President and Chair of US Eximbank Reta Jo Lewis, and Special Representative Sarah Morgenthau from the US Department of State.

Mr. Osius also noted that some U.S. companies make investments in Vietnam through Singapore, like Pepsi and Coca-Cola.

“There's a certain amount of investment that goes through other countries for very good solid business reasons, but American investment does continue to grow in Vietnam,” Mr. Osius affirmed.