US firms keen on investment in Vietnam

A handover ceremony for the joint venture agreement between the Vietnamese Saigon Invest Group’s Kinh Bac City Development and Saigon Telecom Technology JSC, and the US-based Quantum Group was held on September 22 with the witness of State President Nguyen Xuan Phuc.

State President Nguyen Xuan Phuc and delegates from the US and Vietnam. Photo: TTXVN

The signing took place after the president’s meeting with Arun Savkur, General Director of Quantum Corporation during his visit to the US to attend the 76th UN General Assembly in New York City.

At the event, Quantum said it is committed to investing in a series of projects with a total value of about US$20-30 billion. State President Nguyen Xuan Phuc highly appreciated the group's potential and achievements in doing business in Vietnam. He believes that the series of projects is of long-term and strategic vision of the business in Vietnam.

In order to support Vietnam in the fight against Covid-19, the group wished to cooperate with Vietnamese partners to build a healthcare system that combines Western high technology and Eastern traditional medicine. The group also intends to invest in building a technology center for the production of Covid-19 vaccines in the country.

Quantum also expressed its desire to invest heavily in logistics in the southern province of Ba Ria-Vung Tau and build a railway line connecting Vung Tau with Dong Nai, Binh Duong, and Ho Chi Minh City. It is also interested in building a logistics network in the North of Vietnam from Lang Son to Hanoi and Hai Phong.

The US group also expected to invest in infrastructure construction in Vietnam such as highways, bridge construction, telecommunications, industrial real estate, and the stock market.

It has invested in the field of renewable energy production such as the $5-billion Long Son power plant and Long Son port (including a gas port to supply industrial zones and local households).

On the same day, representatives of The AES Corporation (NYSE: AES) and Petrovietnam Gas JSC (PV Gas) exchanged the signed joint venture agreement for the Son My LNG terminal located in Binh Thuan Province in South-Central Vietnam. 

An overview of the signed joint venture agreement in New York City. Photo: AES

The Son My LNG terminal has an installed capacity of 450 TBtu and represents a total investment of about $1.4 billion. The terminal is expected to achieve financial completion in 2022 and begin commercial operations in 2026. 

“This is an important milestone for the development of the Son My LNG terminal and CCGT power plant. The terminal will enable our customers in Vietnam to continue accelerating economic growth by using cleaner, more reliable, and more affordable fuel to transform the energy sector,” said David Stone, President of AES Vietnam. 

The Son My LNG terminal complements AES’ investment in gas infrastructure around the country, alongside its $1.8 billion 2.2 GW combined cycle gas turbine (CCGT) Son My 2-power plant. The plant and terminal will play a major role in shaping Vietnam’s energy future by diversifying its energy mix with imported LNG as well as meeting the country’s increasing demand for sustainable and affordable electricity.

State President Nguyen Xuan Phuc and Boeing leaders. Photo: Boeing

On September 22, State President Nguyen Xuan Phuc also met and discussed with Boeing Southeast Asia President Alex Feldman, Vice President of Commercial Sales & Marketing for India & Southeast Asia John Bruns, and Boeing Vietnam Country Leader Michael Nguyen.

Boeing leaders reaffirmed the company’s commitment to Vietnam’s aerospace industry. “Vietnam’s dynamic economy and its investment in a technically-skilled workforce are going to help propel the country’s aerospace ambitions for years to come, and Boeing is committed to being there every step of the way,” Boeing International President Sir Michael Arthur said.

In August, the group announced the opening of its Hanoi office, which will support the company’s growth objectives across its commercial airplanes, defense, and services businesses.