US eyes investment opportunities in VN’s infrastructures
Tuesday, November 20, 2012, 10:30 GMT+7
A number of leading US firms in energy products/services and infrastructure development are trying to gain a foothold in Vietnam’s future projects in their fields of operation.
They are studying Vietnam, as well as Indonesia, in an ongoing 6-day visit led by Francisco Sánchez, US Under Secretary of International Trade.
The US trade mission is accompanied by eight companies, including General Electric, Honeywell International Inc, Black and Veatch, Cisco Systems, Oshkosh Corporation, Westinghouse Electric Company, WorleyParson LLC, and The Shaw Group.
A team from the mission, led by USTDA (US Trade Development Agency) director Leocadia I.Zak, has also paid a visit to Ho Chi Minh City and the southern region while seeking investment opportunities.
“The goal of the US Infrastructure Trade Mission was to find opportunities to meet Viet Nam’s demand for infrastructure development in several sectors including energy, environment, and public transportation,” Leocadia I.Zak said.
The delegation also held a working session with provincial and city authorities of the cities of Ho Chi Minh and Can Tho, and the provinces of Dong Nai, Khanh Hoa, Long An and Tra Vinh in HCMC.
The main topics of the working session were transportation and infrastructure development. A number of other areas, such as energy, environment and personnel training, were also discussed.
US companies have seen the needs in infrastructure development of these places, and they are looking forward to joining cooperation pacts with the localities in the near future, Zak added.
Although no contracts were inked in the session, Zak said she thought that there will soon be cooperation contracts between the two parties.
She also said that Vietnam is still a market of priority for the US, because it is located in world’s most dynamic region.
The dynamic economic development and strong population growth in Vietnam, currently a 90 million-strong market, made it a “truly emerging market” for US companies, said Le Thanh An, US consul general in HCMC.
Among the eight companies taking part in the mission, General Electric has already invested in a wind power project in northern Hai Phong City. The company, which has been operating in Vietnam since the 1990s, doubled its investment in the wind power project to $120 million two years ago.
Mai Trang Thanh, representatives of Honeywell, a member of the U.S. business delegation, said they were very interested in the local airport and subway construction projects. Working with the Ministry of Transport, the group has made specific proposals to promote the development of American technology in the field of aviation.
Honeywell is supplying the national flag carrier, Vietnam Airlines, with electronic devices for controlling and piloting. It is also working with PetroVietnam in automatic mechanisms and equipment used in oil rigs, and VinaChem in urea fertilizer production.
The US business delegation also met with the Vice Chairman of the HCM City People's Committee, Le Minh Tri.
After hearing Mr. Tri introduce possible cooperation projects, a number of businesses expressed the desire to invest in HCMC high-tech zones, a number of anti-flooding projects, a waste treatment project and metro line No.2.
Honeywell also expressed interest in controlling technology for the metro project, adding that it can provide appropriate technologies for the project.
Shaw showed interest in the Thanh My Loi wastewater treatment plant in District 2 and some of the city's anti-flooding projects. In addition, representatives of Shaw said that HCMC should build incineration plants to generate electricity.
The city is currently facing many challenges, such as traffic congestion, flooding, pollution, and waste disposal. Those issues can only be addressed with high-tech solutions offered by US companies, but at reasonable prices, Tri said.
Regarding mechanisms to support investors, in addition to the general mechanism already in place, for urgent projects, the city may propose a specific plan to create favorable conditions for investment.
During the visit to Vietnam, the USTDA also kicked off the U.S.-ASEAN Smart Grid Workshop in Hanoi, the second event of the U.S.-ASEAN Connectivity Cooperation Initiative.
The workshop brought together approximately one hundred officials from private industry as well as power utilities and regulatory agencies from throughout the ASEAN region, providing an opportunity for them to discuss lessons learned and international best practices. The event also gathered expert speakers from the U.S. power transmission and distribution sector.
USTDA launched the U.S.-ASEAN Connectivity Cooperation Initiative in conjunction with the ASEAN-U.S. Leaders Meeting held in Indonesia in November 2011.
