US-ASEAN links attain higher status

US-ASEAN links attain higher status

Given the current global challenges and uncertainties, the US-ASEAN business community is pinning high hopes on new opportunities in Vietnam backed by strong support from the government.

Mary Tarnowka, strategic advisor at Pacifico Energy Group, joined the largest-ever US-ASEAN business delegation to Vietnam last week, and is now optimistic about the investment environment in Vietnam, citing the country’s economic advantages and potential for growth.

She told VIR, “Our company is looking to contribute to Vietnam’s growing energy demands and is interested in a supportive regulatory framework to attract investment. We are exploring opportunities for offshore wind development and are in discussions for additional solar and near-shore wind projects.”

Pacifico Energy Group has already invested in the solar farm in the south-central province of Binh Thuan, the first investment by a US renewable energy company in Vietnam, completed in 2017.

The company is looking to finalise a 30-megawatt onshore wind project in the southern province of Binh Phuoc, and is considering much larger offshore wind initiatives.

Pacifico Energy Group was one among over 60 US companies participating in this trip, including Meta, Boeing, Dow Chemical, Apple, Intel, Coca-Cola, Nike, Amazon, and Exxon Mobil.

They are interested in the sectors where the US plays a global leadership role, such as technology, financial services, logistics, manufacturing, energy, aerospace and defence, healthcare, consumer products, and food and agriculture.

Meta is expanding in Vietnam with its footprint being deepened and now wants more. Nguyen Thu Thao, director of Public Policy for Vietnam, Laos, and Cambodia, at Meta Asia-Pacific, shared the company’s plans in Vietnam following an announcement late last year about the expansion of production of metaverse equipment in Vietnam to bring to the global market.

“The company has been accelerating the process and achieved positive results. It is expected that Meta will create 1,000 more jobs for Vietnamese people in this high-tech field, and will contribute millions of dollars to Vietnam’s digital economy,” she said. “We also expect to have Vietnamese-made products serving virtual space technology exports to the global market.”

She also pointed out that AI was part of Meta’s long-term commitment to Vietnam. In 2025, the company plans to focus is working with partners to create the largest-ever database to serve training, fine-tuning, and evaluation of AI models, big data.

The US-ASEAN Business Council’s (USABC) mission to Vietnam also created valuable opportunities for Boeing and other members of the US business community to engage with senior Vietnamese government officials and reinforce economic cooperation between the two countries.

“As Boeing marks 30 years in Vietnam, we look forward to strengthening our partnership and advancing the country’s aerospace capabilities, said Michael Nguyen, country director of Boeing Vietnam.

Party General Secretary To Lam (R) and President and CEO of USABC Ted Osius (Photo: VNA)

New chapter of interest

In the healthcare sector, interest is also growing. Brian McFeeters, senior vice president and regional managing director of the USABC, noted a health and life sciences mission held on March 20-21, with 12 companies participating.

This year, the focus of the mission was on preventive healthcare. In order to add substance, it worked with a member company and published a paper on advancing preventive health in Southeast Asia and recommendations for Malaysia, the Philippines, and Vietnam.

“Vietnam, along with other countries, to ensure the sustainability of its healthcare system, needs to take more of a preventive approach, and discuss policy interventions and financing steps that can help. This set of recommendations is in keeping with Vietnam’s national strategy to protect care and improve people,” he said.

The United States is now Vietnam’s second-largest trading partner, while Vietnam has become the eighth largest US trading partner. Ted Osius, president and CEO of the USABC, believed that this record-breaking participation reflects the strong confidence of US businesses in Vietnam’s future, and the members commitment to expanding trade and investment in this dynamic market.

“As Vietnam embarks on a new chapter with a fundamentally reformed and streamlined political system, the US business community looks forward to the positive impact of these changes and to exploring the opportunities ahead,” he said.

For the US-ASEAN business community, the 2025 trip was made at the landmark time as the US and Vietnam celebrate 30 years since the normalisation of relations, Vietnam’s transition to a new phase of economic growth, and tariff risks globally.

According to the USABC, this is an important moment, as the Vietnamese government is implementing sweeping reforms and restructuring initiatives that it assesses will spur economic growth, improve the business environment and create new opportunities for US companies.

Osius said these reforms align closely with the US administration’s priorities of fostering resilient supply chains, opening markets, levelling the playing field for US businesses, and strengthening economic and strategic ties between the two nations.

“What Vietnam’s government is doing today will have a lasting impact. It is removing behind the border barriers to trade, addressing key bottlenecks and making the economy more efficient. US companies have been working with the Vietnamese government to navigate these challenges, and we appreciate the government’s openness to our recommendations,” Osius added.

Highlighting landmarks

During the three-day mission, the USABC delegation held key meetings with leaders from the Communist Party of Vietnam, the government and ministries, with legal and administrative reforms being discussed.

At the meeting Prime Minister Pham Minh Chinh showed strong interest in the industries, and US companies raised their expectations about reform, shortening decision-making time, ensuring consistency and stability of legal regulations, and having preferential policies to encourage investment in a number of specific projects and products.

The government leaders asked ministries to quickly solve their concerns. Relevant ministries and agencies are reviewing import tariffs on goods from the US, encouraging increased imports of key US products that Vietnam needs, especially agricultural products, liquefied gas, and high-tech products.

“Vietnam is implementing synchronous reforms and boosting institutional improvement and infrastructure, while streamlining the apparatus for effective, efficient and effective operations, and reforming administrative procedures to create better conditions for foreign-invested enterprises, including US ones, to invest and do business effectively in Vietnam,” PM Chinh said.

He emphasised the importance of sci-tech for Vietnam’s development, and asked US businesses to continue to increase and expand investment in Vietnam, especially in areas where the US has strengths and Vietnam has demands such as emerging technology, digital economy, green transformation, renewable energy, logistics, and others.

Daniel J. Kritenbrink, partner at Asia Group, said that this was a challenging and somewhat uncertain period, but in addition to navigating the challenges, businesses were squarely focused on seizing opportunities.

“Investors are leading the largest-ever US mission here because the United States and our world-class business community also remain optimistic and bullish on Vietnam. We are encouraged that the Vietnamese leadership has put a new emphasis on the importance of the private sector, on foreign direct investment, and on spurring economic growth,” he said.

Christanto Suryadarma, sales vice president for Southeast Asia and South Korea Zebra Technologies Vietnam’s digital transformation presents significant opportunities for tech firms. Technology will continue to transform manufacturing and transport in the region, and Vietnam is no exception. In manufacturing, we are seeing a shift towards incremental, scalable improvements rather than sweeping transformations. AI-driven predictive maintenance is already helping businesses improve efficiency, while machine vision is enhancing product quality. At the same time, supply chain diversification is becoming a priority as companies navigate uncertainties. To stay competitive, manufacturers are moving from fragmented solutions and adopting integrated platforms that streamline operations and reduce technical debt. High-speed connectivity, especially with 5G, will be critical in making all of this possible. In transport and logistics, AI is playing a key role in optimising supply chains, helping businesses manage vast amounts of data while ensuring more reliable deliveries. Transparency is another major focus – technologies like real-time tracking and RFID serialisation are improving visibility and accountability, which is especially crucial in sectors like cold chain logistics. With Vietnam’s booming exports and e-commerce market, these advancements will help businesses increase efficiency, reduce losses, and enhance customer experience. Ultimately, companies that embrace AI, automation, and high-speed connectivity will be best positioned to thrive in this rapidly evolving landscape. Loganathan Ravisanker, president Dow Vietnam While US tariffs primarily affect trade between the US and China and other countries, they have indirect implications for global supply chains, including Dow’s operations in Vietnam. Any tariff adjustments on raw materials and chemical products may impact input costs, but we remain committed to Vietnam as a key growth market in the region. We continue to navigate trade dynamics through localised production, supply chain optimisation, and strategic partnerships. Our key plans for Vietnam in 2025 include expanding sustainability initiatives. Dow is focusing on circular economy solutions, including promoting the use of recycled plastics and advancing extended producer responsibility policies. We also plan to invest in local manufacturing and research and development, strengthening supply chain resilience and supporting innovation in material science for various industries. Another aim is to strengthen public-private collaboration, working closely with the Vietnamese government on regulatory reforms, environmental policies, and industrial development initiatives. Dow remains committed to long-term growth in Vietnam by investing in sustainable technologies, local partnerships, and policy engagement to drive mutual economic and environmental benefits.

VIR