Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, July 12, 1995 TAG: 9507140008
SECTION: BUSINESS PAGE: C-8 EDITION: METRO
SOURCE: F.J. GALLAGHER STAFF WRITER
DATELINE: LENGTH: Medium
When Nhon Ngo, 55, of Blacksburg visited his native Vietnam in April, he couldn't help but notice that the presence of American businesses had greatly increased.
Since Feb. 3, 1994, when President Clinton lifted the embargo on trading with the United States' former foe, American companies have been diving headfirst into the murky waters of the Vietnamese economy. The country, with a population of more than 74 million, is expected to yield new markets for U.S. products: Coca-Cola, Ford, Budweiser. All over the country, from Hanoi to Ho Chi Minh City, the signs were there.
Ngo said Tuesday he believes Clinton's announcement that the United States will re-establish diplomatic relations with Vietnam, despite the objections of several veterans groups, should help expand the U.S. business presence even further.
"I talked with many government officials while I was there, some very high up," said Ngo, who with his wife, My Loc Gruong, runs the Vietnam Tea House in Blacksburg. "They all want American businesses to come. I think this is the right time and the right decision."
Many American companies, including several in the Roanoke Valley, agree.
Joe Robinson, an international marketing manager at the Virginia Department of Economic Development's Roanoke office, said his office has received at least 16 calls from area businesses, and many more from businesses outside the Roanoke Valley, seeking advice about how to transact business in Vietnam.
At least seven companies, he said, already have opened offices there, with the majority of them working to update the country's underdeveloped infrastructure.
Vietnam's highways, railroads and utilities are in need of considerable work to approach standards enjoyed by U.S. businesses operating in other nations.
But the opportunity is there, Robinson said, to start off on the right foot and install state-of-the-art equipment such as fiber-optic cable for telecommunications.
"People might look at Vietnam and say that they're 30 years behind, but it's not going to take them 30 years to catch up," Robinson said, adding that the French and Japanese have already established a presence in the Vietnamese economy.
Indeed, according to the Journal of Commerce, imports of building materials to Vietnam have increased exponentially over the last several years. In 1993, Vietnam imported nearly 134,000 tons of cement. In 1994, that number climbed to more than 1 million tons.
Hayes, Seay, Mattern & Mattern, a Roanoke-based firm of architects and engineers, has been eyeing the Vietnamese market, particularly the infrastructure, for a number of years, said Timm Jamieson, vice president for architecture.
Clinton's announcement "is the releasing of a grip on areas that are going to be open for development," Jamieson said, adding that Vietnam's economy could eventually rival that of Hong Kong or Singapore. "We're not going to be stupid about it."
by CNB