Text: OPIC Nov. 30 News Release on Vietnam Investment Project
(Robertson: Project is step in forging positive economic ties)The United States is taking another step in "forging a positive economic relationship" with Vietnam through a new investment project by Caterpillar Inc., Overseas Private Investment Corporation (OPIC) executive vice president Kirk Robertson said in Hanoi November 30.
OPIC is committing $2.3 million in financing for Caterpillar Inc.'s authorized dealership in Vietnam, V-TRAC, which provides equipment for infrastructure projects such as roads, railways, seaports, and airports. According to Robertson, the project will procure $1.8 million in goods and create 122 jobs in Vietnam while generating $38.5 million in U.S. exports of goods and services and creating 110 U.S. jobs.
Calling the OPIC-backed project "an important step forward" in developing positive economic relations between the two countries, Robertson stressed that OPIC is "an important part of the effort to normalize relations between our two nations."
"The reopening of OPIC in Vietnam last year after more than twenty years was a very clear signal that there was a new chapter in the relationship between the United States and Vietnam," Robertson said. "It also signaled that U.S. businesses could look to OPIC for the critical support necessary to encourage investment in Vietnam."
OPIC is a self-sustaining federal agency that sells investment services to small, medium and large American businesses.
Following is the text of the press release:
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November 30, 1999
Robertson Announces First OPIC Investment In VietnamHANOI, VIETNAM -- "This is an important step forward in the process of forging a positive economic relationship between the United States and Vietnam," Kirk Robertson, Executive Vice President of the Overseas Private Investment Corporation (OPIC), said today at a ceremony announcing OPIC support for a U.S. investment project in Vietnam.
"OPIC was an important part of the effort to normalize relations between our two nations," Robertson continued. "The reopening of OPIC in Vietnam last year after more than twenty years was a very clear signal that there was a new chapter in the relationship between the United States and Vietnam.
"It also signaled that U.S. businesses could look to OPIC for the critical support necessary to encourage investment in Vietnam. Today's announcement of OPIC's commitment of $2.3 million in financing for the V-TRAC project is an important reflection of this support. By procuring $1.8 million in local goods and creating 122 local jobs in Vietnam, it will make an important contribution to the expansion of the Vietnam economy. At the same time, the V-TRAC project will benefit the United States by generating $38.5 million in U.S. exports of good and services and creating 110 U.S. jobs."
OPIC's financing will support V-TRAC Infrastructure Development Company's expansion of its heavy machinery equipment distribution and maintenance center in Ho Chi Minh City. V-TRAC is the exclusive authorized Caterpillar dealership for Vietnam. The Illinois-based Caterpillar Inc.'s equipment provided by V-TRAC is being used for developing infrastructure through the construction of roads, railways, seaports, and airports in Vietnam. V-TRAC has also developed an Industrial Products Division.
Robertson, who will also be meeting with government and business leaders in Singapore and Indonesia as part of a week long trip to Asia, noted that "while there is a continued interest by U.S. companies in the investment opportunities in Vietnam, these companies will be looking to the government of Vietnam to continue its efforts to provide a more positive climate for investment. OPIC has received expressions of interest for almost 30 potential projects. These projects, if approved, would represent $3 billion in direct investment in Vietnam including projects in power, housing, agribusiness, and water sectors."
OPIC is a self-sustaining federal agency that sells investment services to small, medium and large American businesses expanding into some 140 developing nations and emerging markets around the world. OPIC's political risk insurance, project finance and investment funds fill a commercial void, create a level playing field for U.S. businesses and support development in emerging economies. Since 1971, OPIC has supported $121 billion worth of investments that will generate $58 billion in U.S. exports and create more than 237,000 American jobs.
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