In recent years, trade activities between Vietnam and the U.S have increased continuously along with visits from leaders of the two countries. All have made many experts put faith on FDI attraction prospect from the U.S. And Binh Duong is seen as an attractive destination for U.S investors.
Capital from the U.S on sharp increase
Tran Thanh Liem, Vice-Secretary of provincial Party Committee cum Chairman of provincial People’s Committee said that as of now, Binh Duong has absorbed more than US$740million from U.S investors. The U.S has ranked tenth among 49 countries and territories making investment in the province. Most projects from U.S investors focus on hi-tech and environmentally-friendly industries. Some noticeable projects include P&G Company, Colgate Pamolive Company…
P&G Company has so far built three large-scale factories in Binh Duong with total investment capital of US$360million. After 20 years of operation, the company’s investment capital, output and business scale have reached a 3, 40 and 3-fold increase compared to the initial period. The company is now one of Vietnam’s top consumer goods providers with 4 prestigious brands around the world, namely Tide, Downy, Ariel, Pampers…Along with considerable growth, its products have become favorites of more than 19 million households nationwide.
Similarly, the U.S-invested Amway Group last year put its US$-25million factory into operation at Vietnam-Singapore 2 Industrial Park. This is part of the group’s plan on production expansion worth US$332million.
Along with Vietnam’s deep and wide integration to the world economy, many investors from the U.S have paid attention to Binh Duong in their business strategies. According to U.S investors, Binh Duong is one of Vietnam’s localities with the best infrastructure facilities plus abundant workforce and flexible leaders. Moreover, placing their factories in Binh Duong is very good for market expansion as the province belongs to the Southern key economic zone.
Opportunity remains enormous
The development of U.S investors in Binh Duong has not only diversified goods market at domestic customers’ needs, but also been expected to help export Vietnamese goods into the U.S. Key export products into the U.S of Binh Duong in particular and Vietnam in general like garment-textile, footwear, furniture and pottery have also achieved firm paces. Since early this year, Vietnam’s garment and textile export value into the U.S has obtained approximately US$11billion, 217 times higher than 2000. Footwear export value into the U.S has also reached US$4billion. With the figure, the U.S has become Vietnam’s largest footwear export market.
Regarding the importance of the U.S market, Nguyen Van Le, Vice-Chairman of Binh Duong Leather and Footwear Association said that the U.S was predicted to be a main market of Vietnam’s leather and footwear sector right after the U.S-Vietnam bilateral trade agreement was signed. This was proved through the 16-year development process of the two countries in this sector. Hence, the association always wants to intensify goods into the market so that its members can increase their export turnover in the coming time.
In early November 2015, the American Chamber of Commerce in Vietnam (AmCham) worked with provincial People’s Committee to open a Vietnam-U.S. trade office at Becamex IDC Building in TDM city. With many reasons, according to Mai Hoang, Chairwoman of the U.S-Vietnam Chamber of Commerce in the U.S said that the representative office will help boost FDI flows from the U.S to Binh Duong in particular and Vietnam in general.
Also in the framework of the program boosting cooperation between the U.S and Vietnam, a delegation from Portland city’s Business Federation in the U.S yesterday visited Binh Duong to seek investment opportunities. It is sure that this visit will bring benefits to the two sides, thereby contributing to tightening ties between the U.S and Vietnam.
Reported by Khanh Vinh-Translated by K.T
