Dozens of US Companies Flock to Vietnam to Tap into Fast-Growing Southeast Asian Market
Dozens of American companies are currently visiting Vietnam, aiming to expand their presence in the fast-growing Southeast Asian economy, the CNN reported.
As companies look to diversify their markets and supply chains, Vietnam has emerged as a promising alternative to China. This is the largest business mission ever organised by the US-ASEAN Business Council, with 52 senior executives from US firms attending.
The trip, which began on Tuesday and ends on Thursday, is led by former US Ambassador to Vietnam, Ted Osius. While the council has not specified who is attending, corporate giants Boeing and Netflix have confirmed their participation.
Also read: Here’s how to register a foreign invested company in Vietnam
Boeing’s president for Southeast Asia and managing director for Vietnam are representing the aerospace company and are expected to meet with government officials. The discussions will focus on Boeing’s partnership with Vietnam and ways to enhance the country’s aviation and defence capabilities. The company has been increasing its presence in Vietnam by investing in local capability building and collaborating with Vietnamese organisations.
Netflix declined to comment on the trip, but a source has said that the media giant is examining how to comply with Decree 71, a new regulation that requires overseas media companies to register for a business license in Vietnam in order to provide streaming services there. Netflix’s streaming service is available to viewers in Vietnam, but the company does not have a direct presence there. However, the company is rumoured to be planning to open its first office in the country, according to unidentified sources cited by Reuters.
Vietnam has become an attractive destination for foreign businesses, with its rapid economic growth and rising middle class attracting investors. The country’s GDP expanded by 8% in 2019, defying a broader global economic slowdown.
Nevertheless, Vietnam’s dependence on global trade puts it at risk of being hard hit by further weakness in global demand for exports.
Oxford Economics predicts that the country’s GDP growth will slow to 4.2% in 2023 due to a weak outlook in its global trading partners and rising financial risks, according to CNN.
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