US firms eye Vietnam investment options
17:32' 09/11/2007 (GMT+7)
VietNamNet Bridge – Most business executives accompanying US Secretary of Commerce Carlos M Gutierrez on his ongoing official visit to Vietnam have shown keen interest in expanding their company's operations here.
More than half of the 23 US companies represented in the delegation which arrived for a five-day visit last Sunday are in the Fortune 500 and seek to increase imports from Vietnam and appoint agents and establish channels of distribution in the country.
Brady Southwick, general director of Cummins Diesel Sales Corporation in charge of operation and distribution in the northern and Southeast Asian regions, said his company had signed a memorandum of understanding with Viet Nam Motor Industry Corporation (Vinamotor).
A joint venture would be set up to manufacture diesel engines for trucks and buses both for the domestic market and exports, he added.
Bruce Quinne, deputy director of strategic development at Rockwell Automation group, which specialises in automation of information management, said his company was seeking local partners to boost sales.
Terex Corporation, a diversified global manufacturer of a broad range of heavy equipment, has plans to build an assembly and production facility in Vietnam.
The American tourist
Noel Irwin Hentschel, president of American Tours International group, said Vietnam had great potential to attract US tourists even as she admired the many charms of Hanoi.
She said she had met with more than 10 tourist companies in HCM City to discuss tie-ups.
Both US authorities and tour operators maintain that visas are of little concern, she said.
She quoted the US ambassador to Vietnam as saying more visas would be issued to Vietnamese tourists.
We want to attract more Vietnamese to the US and Canada, at the same time co-ordinating with local tourist companies to bring North Americans to Vietnam, she noted.
Places like Hanoi, Da Nang, HCM City, and the Cuu Long (Mekong) Delta had become popular with US tourists, she added.
Expansion
Kevin Fitzpatrick of the AIG Real Estate Co., an affiliate of the US-based AIG financial group, told HCM City leaders at a recent meeting that the company was looking for a downtown area to build a complex comprising a hotel, commercial centre, and office and apartment blocks.
AIG had appraised some "much-coveted" spots in the city for the mammoth project that was expected to cost hundreds of millions of dollars, he said.
Winvest Investment group, which was licensed last year, sought permission to increase its investment to US$4bil from the current $300mil to build a multi-functional 300ha tourism and recreation complex in Vung Tau town.
"Winvest decided to increase the investment given Vietnam's potential for tourism growth and to compete with large resorts [elsewhere] in the region," Tran Van Son, deputy general director of Winvest Investment's Vietnam operations, said.
The company had begun site clearance work and advanced Ba Ria-Vung Tau Province VND51bil for it, he said.
American investment in Vietnam now totals $5.2bil, the sixth-highest of all countries and territories. This does not include investment by US firms based in Hong Kong and other places.
Analysts predict the number to jump in the next couple of years when major commitments to open up the market will have to be implemented.
(Source: Viet Nam News)
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