Vietnam will prioritize US-invested projects with new technologies

By Hoang Thuy   May 12, 2022 | 12:18 am PT
Vietnam will prioritize US-invested projects with new technologies
Vietnam's Prime Minister Pham Minh Chinh shakes hands with U.S. Secretary of Commerce Gina Raimondo during a meeting, May 11, 2022. Photo by Nguyen Khanh
Vietnam is prioritizing projects with new and advanced technology that are clean and contain high added value, Prime Minister Pham Minh Chinh told U.S. officials and businesses.

The Vietnamese government commits to creating a fair and transparent business environment and U.S. companies can have assurance in their Vietnam investment and expansion, Chinh said Wednesday at a meeting with U.S. Secretary of Commerce Gina Raimondo as part of his working trip in the U.S. ahead of the ASEAN–U.S. Summit.

The Vietnam economy is growing and needs partnership from developed countries, including the U.S., in green finance, technology and human resources.

Vietnam prioritizes projects with advanced and new technology that are clean and have high added value.

The country also seeks projects with green transformation and digital transformation that contribute to the global supply chain.

Raimondo said she highly appreciated the vision and economic development plan of the Vietnamese government, especially efforts to develop a green economy and diversifying the supply chain.

The U.S. wants to increase partnering with Vietnam in meeting its commitments to reduce emission at 2021 United Nations Climate Change Conference (COP 26).

Leaders of energy and investment companies Asia Group, Blackstone, GenX, and AES Corporation expressed interest in Vietnam’s energy transformation plans, and want to increase their investment to help the country achieve its commitments.

Chinh said that energy projects need to be developed on a risk-sharing mechanism that ensures a win-win scenario, and these companies can consider investing in wind, solar and tidal energy, which all have potential in Vietnam.

He also mentioned the topic of energy transformation and realizing COP 26 commitments in a meeting with U.S. Secretary of the Treasury Janet Yellen.

Chinh wants the U.S. to share its experience in developing the financial market (especially the stock market) and the real estate market so they can be healthy and transparent.

Yellen said the U.S. is willing to share its experience with and support Vietnam in creating a mechanism to develop the capital and real estate market.

It will also partner with developed countries to help Vietnam grow its infrastructure and deal with contagious diseases, as well as energy transformation and fulfilling climate change commitments.

Axel Van Trotsenburg, the World Bank managing director of operations, proposed that the two countries partner in energy and digital transformation projects, along with climate change projects in the Mekong Delta and central region, to eradicate poverty and increase healthcare capacity.

What Vietnam needs is a balance between a large energy demand for manufacturing and sustainable development, and the World Bank will support Vietnam to achieve the upper middle-income country status.

Chinh also asked aircraft manufacturer Boeing to develop Vietnam’s aviation ecosystem as this sector is set to develop quickly in future.

Boeing can open maintenance and warranty facilities in Vietnam and develop long-term partnerships. It can also give local airlines incentives to overcome difficulties.

Marc Allen, chief strategy officer of Boeing, said that the company is interested in helping Vietnam in digital transformation and sustainable development.

It also wants to expand its facilities in Vietnam and are looking to find opportunities to cooperate.

On Thursday (U.S. time), PM Chinh is set to have a meeting with U.S. Trade Representative Katherine Tai, have a working breakfast with representatives of U.S. companies, and meet with ASEAN and leaders along with other U.S. officials to discuss economic partnership.

Chinh is in the U.S. for the U.S.-ASEAN Summit, which marks 45 years of ties between the two sides and 27 years since the U.S. and Vietnam established diplomatic relations.

Chinh will join other leaders of the Association of Southeast Asian Nations (ASEAN) members at the May 12-13 summit.

Recent milestones in bilateral ties between Vietnam and the U.S. include the U.S. fully lifting the lethal arms export ban to Vietnam during President Barack Obama's visit in May 2016; and sending aircraft carrier USS Carl Vinson to Da Nang in March 2018, marking the biggest U.S. military presence in the country since the Vietnam War ended in 1975.

Bilateral trade surged from $450 million in 1994 to $111.56 billion in 2021.

The U.S. is Vietnam’s biggest export market and Vietnam is the U.S.’s ninth biggest trade partner.

As of March, U.S. foreign direct investment in Vietnam reached $10.3 billion, ranking 11th among 141 countries and territories that have FDI projects in Vietnam, according to the Ministry of Foreign Affairs.

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