American Companies Explore Business Opportunities in Vietnam
As companies seek to diversify their markets and supply chains, Vietnam has emerged as an attractive potential alternative to China. Dozens of American firms, including heavyweights like Boeing and Netflix, are participating in the largest business mission organized by the US-ASEAN Business Council to explore opportunities in the fast-growing Southeast Asian economy. The trip, led by former US Ambassador to Vietnam Ted Osius, will run until Thursday. Discussions between US corporate executives and Vietnamese government officials will focus on enhancing collaboration and strengthening the country’s aviation and defense capabilities.
Rising Opportunities and Challenges in Vietnam’s Economy
Vietnam’s GDP expanded by 8% in 2019, making it a popular destination for foreign investors. However, the country is facing heightened risks due to the continued effects of the global economic slowdown. As one of the world’s most trade-dependent economies, Vietnam would be among those hardest hit by further weakness in global demand for exports. According to Capital Economics, Vietnam’s GDP growth would slow to 4.2% in 2023. Despite the risks, many US companies remain optimistic about the potential of the Southeast Asian nation’s economy.
Netflix Faces Regulatory Challenges
Netflix is examining how to comply with a new regulation that requires overseas media companies to register for a business license from Vietnam in order to provide streaming services there. The media giant’s streaming service is available to viewers in Vietnam, but it does not have a direct presence there. The company is expected to have more clarity on the rule following the trip, and there are reports that Netflix is planning to open its first office in the country soon. The company has declined to comment on this speculation.
