Minister of Finance presents address, painting a positive picture of the future of the investment and trade relations between Vietnam and the US.
The “My Vietnam - Your Investment Destination" conference to promote investment in Vietnam is taking place in New York from now to July 5.
The conference will feature two parts. The first will concern securities policies between Vietnamese representatives and US investors and companies, to collect feedback from the US side. In the second part companies will discuss their experience and the opportunities in operating in Vietnam’s financial market.
Cooperation in economics, investment, finance and trade between Vietnam and the US has continually increased on the basis of 20 years of diplomatic relations between the two countries. “Bilateral exchanges in all sectors, especially in the financial sector, over recent years, have become stronger,” Minister of Finance Dinh Tien Dung told the conference.
Many large US financial corporations already have a presence in Vietnam, he went on.
There are a total of 995 investors (including 565 institutional investors and 430 individual investors) operating in Vietnam and holding more than 5 million bonds, 8,500 warrants, and more than 1 billion shares in Vietnam’s securities market with a total value of more than VND12 trillion ($550.3 million). “The Vietnamese Government appreciates the role of US financial investors,” Mr. Dung said, adding that there are also other areas of potential for US investors.
With the strong determination of Vietnamese Government the estimated total value from the SOE equitization process would reach about $25 billion and the number of shares offered externally estimated at 3.75 billion.
“Domestic funds are not enough to buy all of the shares mentioned above,” Mr. Dung said. “The Vietnamese Government appreciates the role of foreign investors, including those from the US, in SOE equitization.” Along with investment funds, foreign investors’ management experience and modern technologies would contribute to improving the quality of services in the market, he added.
Vietnam also hopes to develop comprehensive financial cooperation between the two countries via the conference.
Exactly 20 years ago Vietnam and the US announced the formal normalization of diplomatic relations, marking a new stage for cooperation and development between the two sides. During the visit by President Truong Tan Sang to the US in 2013, leaders of the two countries agreed to upgrade the bilateral relations to a Comprehensive Partnership. This was an important step in deepening and expanding the relationship based on the existing cooperation between the two countries.
The US is now one of Vietnam’s biggest economic and trade partners, according to Mr. Dung. As at February this year there were 729 US investment projects in Vietnam with capital of $11 billion, ranking the country seventh in FDI source countries.
Vietnam’s export to the US in 2014 stood at nearly $29 billion, an increase of 36-times compared to 2000. Vietnam also became the largest exporter to the US in ASEAN last year. “Exports to the US are predicted to increase over the coming years,” Mr. Dung said.
He also emphasized Vietnam’s growth over the last ten years, which averaged 6.4 per cent per year, as well as the government’s efforts in controlling inflation, restructuring the banking system, and reforming administrative procedures.
The conference is being organized by the State Securities Commission (SCC) while the Ministry of Finance will join it in presenting new policies to help Vietnam’s financial market reach international expectations.