[Round-up] Obama’s Visit to Trigger Big Wave of U.S. Investment in Vietnam

Tuan Minh

19:03 24/05/2016

BizLIVE - The deals signed between U.S. and Vietnamese enterprises will enable a stronger flow of American investment in Vietnam.

[Round-up] Obama’s Visit to Trigger Big Wave of U.S. Investment in Vietnam

Vietnamese President Tran Dai Quang receives his U.S. counterpart Barack Obama on May 23. (Photo: Reuters)

Business Community Contributes to Vietnam-U.S. Ties’ Sustainability: PM
Vietnamese Prime Minister Nguyen Xuan Phuc hosted a reception in Hanoi on May 24 for a delegation from the U.S.-ASEAN Business Council, where he stressed that the business community should be a decisive factor for the sustainability of the two nations’ ties, Vietnam News Agency reported.
Vietnam continually facilitates the operation of foreign investors in the country, including those from the U.S., he said, adding that government agencies are trying to remove all obstacles to further develop trade, investment and tourism between the two countries.
Vietnam Tourism Sees Robust Growth
Tourism in Vietnam continues to be a promising source of income for the country, with growing demand for accommodation, and many new and promising projects in the pipeline for the next decade.
Vietnam has led the growth in the Asia-Pacific region, with a recorded 5.6% percentage points in occupancy to 68.7% and a 4.5% rise in average daily rates (ADR) to $129.67 in the upscale segment, VNA cited data from STR, the worldwide leading hospitality data center, as saying.
The country’s ADR was the highest on record for any quarter. As a result, revenue per available room grew by 10.3% to $88.98, in the four-and five-star hotel categories.
Hanoi’s 5-Month Industrial Production Grows 7.7%
Hanoi’s industrial production index (IPI) rose 7.7% year-on-year in the first five months of this year, according to the city’s People’s Committee.
In May alone, the index climbed by 6.1% compared to the previous month, and 8.9% from a year earlier.
Vietnam to Pump Billions of USD for Social Housing
State-controlled commercial joint stock banks would have to spend 3% of their total outstanding loans for developers and buyers of social housing projects, VNA cited Chairman of the Vietnam Real Estate Association Nguyen Tran Nam as saying.
This 3% would be equivalent to some 300 trillion dong-400 trillion dong ($13.4 billion-$17.9 billion), Nam said, adding that there would be no deadline for this loan package.
Vietnam Airlines to Cut State Holding to 65%
National flag carrier Vietnam Airlines will cut the state ownership in it to as low as 65%, local media reported.
The carrier will sell an 8.77% stake to Japan's ANA Holdings Inc. for $100 million at the end of this month, cutting the state holding to 87.73%.
Vietnam Airlines aims to earn a pretax profit of 2.3 trillion dong ($103 million) on revenue of 77.8 trillion dong ($3.5 billion) this year.
Canada Developer to Pour another $75 million into Resort Project in Vietnam
Canada-incorporated Asian Coast Development Ltd. has pledged another $75 million for the Grand Ho Tram Strip project, a 400-acre resort and casino complex in Vietnam’s southern province of Ba Ria-Vung Tau.
The pledges aim to expand the luxury complex to host 1,100 rooms, a double of its current capacity.
Rates on Vietnam’s Interbank Dong Loans Fall to 3-year Low
Interest rates on dong-denominated loans in the Vietnamese interbank market have been on the decline since the end of April 2016, reaching a record low in the last three years, according to a report by Hanoi-based Maritime Bank’s Economic Research Center.
Vietnam’s consumer price index (CPI), a measure of inflation in the country, in May increased 0.54% from April and 2.28% from a year earlier, the General Statistics Office (GSO) said in a report Tuesday.
This is the sharpest month-on-month growth for May in the past five years, according to data of the Vietnam Economics Times.
With the Trans-Pacific Partnership (TPP), Vietnam will be less dependent on any one trading partner and enjoy broader ties with other partners, including the U.S., President Barack Obama said during his remarks in Hanoi on Tuesday.
“We’ll keep working to unleash the full potential of your economy with the Trans-Pacific Partnership. Here in Vietnam, TPP will let you sell more your products to the world and attract new investment,” he said.  
The deals signed between Vietnamese and U.S. businesses will likely pave the way for a dramatic wave of American investment in Vietnam after President Obama’s visit, said Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI).
The U.S. is on the doorstep of becoming the No. 1 investor in Vietnam, said Loc at a business meeting held by the AmCham and VCCI in Hanoi on Monday evening.