From the recent shifting of factories of international enterprises to Vietnam, which also leads to the movement of supply chain. US investors are aiming to “landed” in Vietnam.
In September and October 2022, a series of US businesses continuously "landed" in Binh Duong to find investment cooperation opportunities in the logistics field. The first is Warburg Pincus Group (USA) met with leaders of Binh Duong province at the end of September 2022 to discuss the investment plan of the cross-border e-commerce Center project.
This project is planned to build by Warburg Pincus and its joint venture partner Becamex IDC with a scale of 75 hectares in Binh Duong New City. The center includes high-tech factories, warehouses for air cargo transport, cross-border e-commerce warehouses, bonded warehouses, etc.
During the meeting with leaders of Binh Duong province, Mr. Charles R. Kaye, Global General Director of Warburg Pincus Group, hoped that Binh Duong province's government would create all conditions for businesses to soon deploy supply chain ecosystem project, creating a highlight to attract investment in Binh Duong.
After the conference, about 100 US investors expressed their desire to connect trade and find investment opportunities for logistics industry in Binh Duong province.
The main reason for US firms to choose Vietnam because with the advantage of being the most developed industrial province in the Southern region and among leading localities in attracting foreign direct investment (FDI), Binh Duong is a "fertile" land for businesses to invest and operate logistics services. Moreover, the fact that Warburg Pincus Group has planned to build a cross-border e-commerce center in Binh Duong is the basis for US businesses to confidently invest in this field.
At the Vietnam - US Trade Forum, Ms. Susan Burns, Consul General of the United States in Ho Chi Minh City, said that two-way trade turnover between the US and Vietnam reached 113 billion USD in 2021 and the results in 2022 will certainly be higher. Vietnam has become a key link in the supply chain, playing a vital role in the US economy. Vietnam is currently the 8th largest market for US agricultural products, while the US is Vietnam's largest export market for agricultural products.
Ms. Susan Burns said that logistics is one of the three areas where US businesses see huge investment opportunities in Vietnam, after clean energy and healthcare.
For logistics, when investing in Vietnam, with strong financial potential and understanding of US regulations, US businesses have a lot more advantages than Vietnamese enterprises since t of them are small and medium-sized logistics companies.
For example, the regulations of the US Federal Maritime Commission (FMC) related to container shipping activities to the US require thorough understanding of local regulations, professionalism to avoid tax risks, fees and penalties at the delivery destination as well as at the point of transshipment. Therefore, when investing in logistics in Vietnam, US businesses will have many advantages in transporting goods from Vietnam to the US.
While the logistics sector was limited to foreign investors in the past, now, according to the specific commitments on services of Vietnam when joining WTO, foreign enterprises are allowed to establish companies with 100% foreign capital in some stages of logistics supply chain. For example, with warehousing, freight agency and delivery services, foreign investors can establish 100% foreign owned companies in Vietnam. Therefore, these are favorable conditions for foreign enterprises to invest in the logistics field in Vietnam.
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