Automobile production at Ford Vietnam (Photo: VNA)The Suntory PepsiCo Vietnam Beverage Company recently brokeground for its largest and most modern factory in the Asia Pacific region atthe Huu Thanh Industrial Park in the Mekong Delta province of Long An.
Coveringnearly 20ha, the 300-million-USD factory will be operated by renewable energysuch as biomass fuel and solar energy, and launch products with packaging madefrom 100% recycled plastic. Once completed, it will have an annualoutput of 800 million litres, helping enhance the company’s ability to meetconsumer needs and strengthen its leading position in the Vietnamese market.
Pepsico proposed the project to Prime Minister Pham Minh Chinh while joiningthe US-ASEAN Business Council (USABC) delegation to visit Vietnam and seekinvestment opportunities there last month.
Along with Pepsico, many other investors have expressed their interest and confidencein the Vietnamese market’s potential, including Energy Capital who wants todevelop Long Son port in Ba Ria Vung Tau province and LNG project in Binh Thuanprovince, and global energy company AES who is preparing for the Son Mycombined cycle gas turbine power plant.
In a working session with Minister of Planning and Investment Nguyen Chi Dungduring the USABC’s visit, renowned firms like Ford, Boeing and Viatris showedtheir strong commitment to continuing investment in Vietnam.
They said they have injected more than 1 billion USD into Vietnam through largecorporations like VinGroup and Masan, and will seek further investment opportunitiesin the country.
Most recently, leaders of Rosen Partner said the group wishes to expandinvestment in Vietnam in the areas of realty and tourism while meeting withDeputy Prime Minister Le Minh Khai in the US.
Moreinvestments are likely to come in the areas of high technology, semiconductorand AI as US corporations said they will pour billions of US dollars into Vietnam inthe fields.
Although US investors have been interested in the Vietnamese market, they havea relatively smaller presence in the country.
According to the Ministry of Planning and Investment, US firms registered only17.26 million USD in Vietnam in the first quarter of this year, ranking 19 among countries andterritories having investment in the country.
Dung said the ranking is not on par with the US investors’ potential as well asthe sound Vietnam – US relations.
Laying a stress on the elevation of the bilateral ties to a ComprehensiveStrategic Partnership as well as agreements on promoting cooperation intechnology and innovation, including semiconductor industry, he highlightedthat there is no barrier to the US investment wave to Vietnam and vice versaand even that from a third country.
According to Chairman of the American Chamber of Commerce (AmCham) in HanoiJoseph Uddo, Vietnam should continue its reform to create a favourableinvestment climate, and an equal and transparent legal environment to lure newinvestments while maintaining and developing the existing ones.
Administrative procedures should be improved as well, he said, elaborating newlaws and regulations have been put into place, slowing down the approvalprocess and increasing burden on enterprises.
US firms also voiced their concern over energy for production and businessactivities, especially those operating in high technology, electronics andsemi-conductor.
Deputy Regional Managing Director and Vietnam Chief Representative for theUSABC Vu Tu Thanh held that Vietnam should pay due attention to itsconnectivity with other ASEAN member states to attract more investment from theUS who sees ASEAN a large market./.
VNA
