Press Release
Meeting on Vietnam Investment Attracts N.Y. Businesses, Touts Opportunities
The old saying goes, "Go west, young man." Now that U.S. businesses have reaped many of the rewards of entering markets in China and pouring investment capital into the country, a new mantra may be forming. "Now that you've gone west, young man, go farther south."
The U.S. business community is beginning to recognize Vietnam as a promising market for its productivity and products as well as an exciting target for investment. On February 26, 2008, law firm Duane Morris LLP, which has two offices in the country in Hanoi and Ho Chi Minh City, hosted a panel discussion in its New York office to explain the conditions that are driving Vietnam's burgeoning growth - second only in the region to China's - and delve into the legal and business framework that is making the country a solid addition, or even alternative, to investment in China. More than 80 guests, including lawyers and representatives from investment firms, financial services companies, government entities and academic institutions, attended the two-hour meeting.
The panel, led by the managing partner of Duane Morris in Asia and former Mexican Ambassador to Singapore Eduardo Ramos-Gómez, included Le Luong Minh, Vietnam's Ambassador to the United Nations; Bryan Bachner, Ph.D., a leading authority in U.S.-Asia trade; and Duane Morris partners Christopher Muessel of the firm's Ho Chi Minh City and Singapore offices and Peter Funk of the New York office.
Ambassador Le Luong Minh touted the country's move toward a market economy over the past 22 years and its subsequent accession to the WTO in 2007, as well as its emergence as a major player in the region and globally, as demonstrated by its memberships in major political and economic organizations - particularly ASEAN and APEC and its recent election to the U.N. Security Council - as the two principal reasons behind the investment driving the country's economic growth. Looking toward the future of Vietnam, Ambassador Minh spoke of two major goals for the country: to work to be removed from the list of the poorest, most underdeveloped nations by 2010, and to develop in such a way that it can be placed on the list of industrialized nations by 2020.
"We are poised to accomplish our first goal by next year, should the rate of growth we are currently experiencing continue, and we are optimistic about our ability to achieve our second goal," the ambassador said.
Bachner also spoke, providing nuanced answers to the question "Is Vietnam the new China?" by discussing both the pronounced and subtle similarities and differences between the two countries, and offered insights into the major reforms that have aided both countries in achieving sustained growth over the past three decades.
"Vietnam is at the start of an economic growth trajectory that should be of great interest and concern to U.S. leaders and investors," he said.
Duane Morris partner Muessel, a member of the firm's Corporate Practice Group, then discussed the history of and legal framework for investment in Vietnam. He cited the Bilateral Trade Agreement with the U.S. in 2001 as a major turning point in U.S. foreign direct investment (FDI) and revealed statistics suggesting the legal reforms enacted since 2001 (especially in 2005-06) aimed at improving FDI in the country have already begun to pay off. He also discussed the impact of new architecture in the region and the industries most able to benefit from the country's economic explosion.
Peter Funk, partner in the Energy, Environment and Resources Practice Group, offered insights regarding the energy infrastructure in Vietnam and noted the need for the country to take into consideration electricity distribution and future energy needs. He also noted the potential opportunities for foreign investors to profitably abet this process.
The panelists were enthusiastic about the prospects for the country and for the region as a whole. Ramos-Gómez offered his thoughts, saying, "When you see the skyscrapers in Singapore or Hong Kong, when you see all the construction and new businesses being created, when you look at the growth that is happening, there is a vibrancy in the region. I believe that this certainly is the Asian Century."
