Rising high-quality investment inflow, especially from the US and EU, has helped Vietnam better integrate into the global supply chains.
According to Amanda Rasmussen, chairwoman of the American Chamber of Commerce (AmCham) in Ho Chi Minh City, American companies are inserting Vietnam into the global supply chain, while creating quality jobs and helping the country become more productive and efficient.
More and more American and European firms are setting up facilities in Vietnam, whose products are mainly exported worldwide.
Among the investors is American Universal Alloy Corporation (UAC), a leading global manufacturer of aircraft components for aerospace companies such as Boeing, Airbus, Embraer, Bombardier and their associated supply chains.
UAC held an opening ceremony for an aerospace component factory in Danang in late February this year. With the registered investment of US$170 million, the ¬factory aims to manufacture and install aerospace ¬components from aluminium alloys and composite in ¬service of the industry. It is capable of manufacturing and assembling around 4,000 out of five million aircraft ¬components, all for export.
Kevin Loebbaka, chief operations officer of UAC, expressed hopes that the factory will play an important role in the strategy of providing components to its partners worldwide. This is its first facility in Vietnam and Asia as a whole to serve the global aerospace industry.
Alton Industry Company, another American business, last month also registered to invest over US$87 million into building a factory to manufacture air compressors and robot vacuum cleaners in Danang Hi-Tech Park.
Beside Danang, southern cities and provinces like Ho Chi Minh City, Dong Nai, and Binh Duong are also attracting a large number of American and European investors.
Dong Nai province, for example, has 27 American investors, mainly operating in the industrial production with total registered capital of over US$207 million, and more than 70 projects worth over US$2.8 billion from 13 European countries, focusing on industry and machine equipment production, spare parts, electronics, and garment and textiles.
In Dong Nai, 80 percent of goods produced by businesses are exported, with the remaining used for domestic consumption.
US Consul General in Ho Chi Minh City Mary Tarnowka said US firms want to invest in Dong Nai’s industry, infrastructure, aviation, and high technology sectors. A large number of American firms will come to Dong Nai in the near future to study the local investment environment, she revealed.
AmCham’s Rasmussen said the prospects for US investment in Vietnam are good and improving. Currently, many American companies are planning to move to the country, partly because of the special tariffs imposed on US$250 billion worth of American imports from China.
Data from the Foreign Investment Agency under the Ministry of Planning and Investment showed American investors registered US$141.12 million into Vietnam in the first quarter of 2019. As of March 20, 2019, the US had 924 projects in Vietnam with the total registered capital of US$9.13 billion.
The positive move was also forecast for the investment inflow from the EU. According to Vice Chairman of the European Chamber of Commerce (EuroCham) in Vietnam Tomaso Andreaatta, the planned signing of the EU-Vietnam Free Trade Agreement (EVFTA) will strongly increase investment attraction from European businesses.
Besides investing in infrastructure and high technology, EU firms are looking to join projects on smart city building and green growth, he said.
Carlos Dominguez Agulleiro, deputy head of Spain’s Economic and Commercial Office in Ho Chi Minh City, said the number of Spanish businesses deciding to invest in Vietnam is increasing.
Sharing the same view, Michele D’Ercole, chairman of the Italian Chamber of Commerce in Vietnam, said the investment flow from Italian businesses in Vietnam will surge this year.