Following US President Joe Biden's visit to Vietnam, Hanoi-based IT company Rikkeisoft announced that they are ready for a major investment in the USA. Relations between the two countries had been stagnant and tense last year.
Later, in September, US President Biden visited Vietnam and held official contacts to establish economic ties between the two countries.
Vietnam-based IT company Rikkeisoft announced plans to invest $30 million (VND731.85 billion) in the US. Large part of this budget will go to human resources development, infrastructure and planned mergers and acquisitions.
The announcement came during the Vietnam and US Business Forum on Technology and Innovation Cooperation held in San Francisco, California on September 18. In addition to business delegations from both countries, Vietnamese Prime Minister Pham Minh Chinh also attended the forum.
Investments for 2024 and 2026 are planned
Rikkeisoft initially announced it would spend $2 million by the end of 2023. Apart from this, the remaining 28 million dollars will go to investment expenditures planned to be made between 2024 and 2026.
“More than a financial contribution, these investments are to be a solution to the urgent talent shortage in the US technology industry,” said Tung Bui, senior vice president of Rikkeisoft and CEO of RKTech, a subsidiary of Rikkeisoft.
Adding that Vietnam is a developing, highly skilled, and cost-effective source of technology talent, Bui says they will offer value-added services to US customers.
On the other hand, CEO Bui Rikkeisoft explained that the goal is not only to achieve an initial public offering in the US in 2028, but also to fundamentally enrich the US technology environment by providing a sustainable solution to the talent shortage.
In summary, Rikkeisoft plans to create hundreds of technology-focused jobs in the US market. Rikkeisoft's president, Tung Ta, also stated that he expects his company to reach a market value of $ 1 billion, adding: "As a result, an important market like the USA can significantly contribute to Rikkeisoft achieving this goal."
Trade rivalry between Washington and Beijing
The investment news came after US President Joe Biden's short and historic visit to Vietnam in early September; this visit is seen by many as an attempt to counter China's influence in South East Asia.
Tensions between Washington and Beijing over trade rivalry and technology issues have escalated last year, with both countries engaging in aggressive rhetoric.
Vietnam has since emerged as a reliable alternative to the Chinese investment market. But some experts are skeptical of Hanoi's desire to prioritize its relationship with the United States over its relationship with China.
Yongjin Metal will establish a factory in Vietnam
In April 2023, Chinese stainless steel producer Yongjin Metal also made statements about its investment plans in Vietnam. Accordingly, they stated that they planned to establish a factory that would have a total capacity of 260 thousand tons when completed. This facility, which will be Yongjin Metal's second factory in Vietnam, is seen as a positive development for the relations between the two countries.
Shares of Zhejiang Yongjin Metal Technology rose in April after the Chinese stainless steel supplier said it would invest US$125 million to build a second stainless steel factory in Vietnam to supply the local market.
Because Yongjin Metal's Lanxi company, based in China's southeastern Zhejiang province, said that the new facility, which will be built in three stages, will have a capacity of 260 thousand mt per year and will produce two types of stainless steel strip.
Yongjin Metal is known to include Midea Group, Whirlpool Corp, and Sharp Global among its customers. The stainless steel factory currently located in Vietnam caters to the European, North American and Southeast Asian markets.
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