US investors armed with large amounts of capital and a desire to cash in on Asia's second fastest growing economy, have been flocking to Viet Nam in ever increasing numbers.
From 1988-2004, US businesses poured 1.3 billion USD into the Southeast Asian nation, coming in at 11th on the table of the largest foreign investors into the country. However since then, US capital finding its way into the economy of its former foe has increased by over 280%, to hit the 4.3 billion USD mark. The US also became the 8th largest foreign investor.
Official statistics from the Ministry of Planning and Investment and a plethora of US business delegations’ visits to Viet Nam over the past 12 months have pundits forecasting that total US investment into the country will nearly double that by the end of the fiscal year and exceed 8 billion USD.
To date, the majority of the attention of US firms has been heaped on the domestic construction, energy, high-tech and primary industries.
Highlighting the race for position in the market was Intel's bump in capital outlay after nine short months of operation in the country, from 605 million USD to 1 billion USD. After researching the market, the global chipmaker showed little hesitation in expanding its platform to include the construction of a massive semi-conductor assembly plant in the booming Ho Chi Minh City Hi-tech Park.
The Southern economic hub's high-tech park also welcomed Jabil on board with a 100 million USD initiative to produce microelectronics and develop IT solutions within the last month.
Sensing a turning of the tide, IBM also decided to set up shop in the Ho Chi Minh City National University, by establishing a global service centre that will look to exploit a highly skilled, low-cost workforce.
Recently, a delegation of 29 representatives of major US importers arrived in the country and came away so impressed that they immediately made plans to establish an investment fund thought to be worth between 50-100 million USD by the end of the year.
Chief delegate of the group, James Kim, said that the fund is aiming to lure US investors to come in on Viet Nam's burgeoning real estate and capital market potential.
Experts attribute the increase in attention from US businesses to the country’s young and skilled work force, political stability, a high annual economic growth rate of over 7% since 2000 and Viet Nam’s recent admission to the WTO.
Source: VNA
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