Early wins matter for the US-Vietnam relationship
Early wins matter for the US-Vietnam relationship
As US President Trump embarks on a broad set of engagements in Asia, the US-Vietnam relationship is primed for a win-win that advances mutual commercial and economic interests. In particular, upcoming engagements between Trump and Vietnamese Prime Minister Nguyen Xuan Phuc present an opportunity to advance shared strategic interests and create more jobs in both countries through increased US exports and investments to Vietnam.
Despite the potential to advance bilateral commercial relations, concerns in senior quarters in Washington about Vietnam’s investment climate and trade imbalance present risks to the overall bilateral relationship. As the CEO overseeing the largest current US private equity investment in Vietnam – The Grand Ho Tram Strip – I know there have been some challenges arising from these criticisms. However, my experiences suggest that the Vietnamese government is committed to implementing reforms and supporting American and Vietnamese business operations. I have received reassurances that there would be a level playing field for US investments in Vietnam as part of a mutually beneficial trade relationship. These came in tandem with the exchange of letters between Trump and Vietnamese President Tran Dai Quang, in which Trump affirmed his intention to promote bilateral co-operation in economics and trade.
Given this progress early in the new Trump administration, the upcoming visit by Phuc to the US offers an opportunity to firmly set the relationship on a positive path. At this time, early demonstrations of a mutually beneficial relationship will be essential.
Vietnam is not yet a major export destination for US goods; however, rising incomes will spur growth in the country’s demand for higher-value consumer goods and US brands. For now, as an emerging market with enormous capital needs, Vietnam can underscore the lucrative opportunities for the next generation of US investors to finance projects critical to the socio-economic development of the country.
Prospects for long-term growth that will underwrite these investments can be affirmed by a pioneering group of American investors who have spearheaded market entry to the country. These early believers in Vietnam can also provide the US government with vital confirmation of the favourable business climate for US interests in Vietnam.
My own project in the southern province of Ba Ria-Vung Tau is one such example. As the first fully-integrated resort with a five-star hotel in the country, The Grand Ho Tram Strip has set the standard for high-quality foreign investment in Vietnam’s promising domestic tourism industry. Having introduced luxury integrated resorts to Vietnam, I am heartened to see similar projects under way in Phu Quoc and Van Don. As a long-time advocate of the country’s increasingly diverse tourism offerings, The Grand Ho Tram Strip is committed to helping both of these operators succeed.
As the Vietnamese government prepares to issue pilot licences under the guidelines of the recently promulgated decree on casino business, inclusion of this storied US investment is absolutely critical. Doing so will make clear that Vietnam is an open market where foreign investors can be assured of incredible growth opportunities and the government’s whole-hearted commitment to providing a level playing field for foreign and domestic entities alike. In particular, such a pronouncement – coinciding with Phuc’s visit to the US – would counter sceptics in Washington who question Vietnam’s commercial practices, and also reaffirm the wealth of opportunities available in Vietnam to global investors.
Vietnam stands at a critical juncture. With rapidly evolving conditions in Northeast Asia and Europe, strong commercial and investment ties to the US can act as a firm foundation for Vietnam’s continued growth and development. In this context, Phuc’s upcoming visit presents an invaluable opportunity to recast the conventional view on Vietnam, and make clear the country’s ongoing commitment to strong, mutually beneficial commercial engagement with the US.
