Hong Kong

Dozens of American firms are in Vietnam this week in hopes of pushing additional into the fast-growing Southeast Asian financial system, which has emerged as a pretty potential different to China as firms search to diversify their markets and provide chains.

Senior executives from 52 US companies are collaborating within the greatest enterprise mission ever organized by the US-ASEAN Enterprise Council, the commerce foyer advised CNN.

The journey, held yearly and at the moment led by former US Ambassador to Vietnam Ted Osius, started Tuesday and runs to Thursday. The council didn’t specify who was attending, however company heavyweights Boeing

(BA) and Netflix

(NFLX) confirmed they’d joined the delegation.

Boeing’s president for Southeast Asia and managing director for Vietnam are representing the aerospace large and anticipated to fulfill with authorities officers, the corporate stated in a press release to CNN.

The discussions “will give attention to Boeing’s rising partnership with Vietnam and methods to strengthen the nation’s aviation and protection capabilities,” it added.

“Boeing has been creating its presence in Vietnam by investing in native functionality constructing and collaborating with Vietnamese organizations throughout manufacturing, infrastructure, engineering providers, aviation security, sustainability, analysis and know-how, coaching, and abilities growth,” the assertion stated.

Netflix declined to remark additional. However based on an individual aware of the matter, the media large is inspecting learn how to adjust to a brand new regulation that requires abroad media firms to register for a enterprise license from Vietnam as a way to present streaming providers there.

The agency hopes to have extra readability on the rule, which is known as Decree 71 and took impact in January, following the journey, the particular person added.

Netflix’s streaming service is offered to viewers in Vietnam, although it doesn’t have a direct presence there.

That will quickly change. Citing unidentified sources, Reuters reported final month that the corporate was planning to open its first workplace within the nation. Netflix declined to remark.

The blitz by US firms this week underscores how Vietnam has emerged as a pretty vacation spot for overseas companies, as its fast financial development and rising center class proceed to lure traders. The nation’s GDP expanded by 8% final yr, defying a broader international financial slowdown.

However the nation of greater than 97 million can be dealing with heightened dangers because of the continued results of the slowdown. As one of many world’s most trade-dependent economies, Vietnam can be amongst these “hardest hit by additional weak spot in international demand” for exports this yr, based on Capital Economics.

In a current word, Oxford Economics predicted the nation’s GDP development would gradual to 4.2% in 2023, citing “a weak outlook in its international buying and selling companions and rising monetary dangers.”