President Biden's visit may usher in new wave of foreign investment
VGP - U.S. President Joe Biden's visit to Viet Nam last month seems to have ushered in a new era of expanded economic links between the two countries, said Japan’s Nikkei Asia, adding that a fourth boom of foreign investment in the Southeast Asian country may be in the making.
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By the end of 2022, the U.S. poured US$11,4 billion in foreign direct investment in Viet Nam, ranking 11th among countries and territories investing in this market of more than 100 million people.
In contrast, South Korea invested US$80,9 billion in Viet Nam, followed by Singapore US$70,8 billion and Japan US$68,8 billion.
Currently, Viet Nam wants to shift from traditional labor-intensive industries such as textiles and garments and electronics assembly to high-tech, high-value-added industries. Cooperation with American technology companies, especially companies with positions in the field of semiconductors and AI, will be very important in transforming the country's industrial structure.
Prime Minister Pham Minh Chinh recently requested the development of a human resources development project with the goal of training 30.000-50.000 engineers and 100 experts in digital transformation, chip and semiconductor manufacturing. Viet Nam is also considering new measures and policies to attract multinational companies. However, more time is needed to know whether the fourth FDI boom in Viet Nam will become a reality.
In September, within the framework of his visit to Viet Nam, President Joe Biden and General Secretary Nguyen Phu Trong established a comprehensive strategic partnership between the two countries. Mr. Biden's trip also brought some big business deals. For example, Vietnam Airlines signed an agreement to buy 9 Boeing 50 Max aircraft, worth about US$737 billion.
Prime Minister Pham Minh Chinh also had a business trip to the U.S. in late September when visiting the headquarters of chip manufacturing giant Nvidia, the Prime Minister proposed that the group establish a factory in Viet Nam, considering Vietnam as a base in Southeast Asia. He also received leaders of some leading technology corporations in the U.S. such as Bill Gates and Elon Musk.
In the past, Viet Nam witnessed three significant foreign direct investment booms. The first time happened when Honda Motor started producing two-wheeled vehicles in Viet Nam in 1997. The second wave lasted from the 2000s to 2008 when Lehman Brothers bank (USA) collapsed, causing a crisis. global finance. During this period, Samsung Electronics invested in a smartphone production facility in Bac Ninh in 2009./.
