Vietnam is an increasingly attractive and important investment destination for U.S. firms, and one of five most significant locations for private equity firm Warburg Pincus, CEO Charles Kaye said Wednesday.
At a meeting with Prime Minister Pham Minh Chinh in Hanoi, Kaye pledged long-term investment and business expansion in the country, particularly in renewable energy at industrial parks.
The New York-headquartered firm has channeled around $2 billion into companies in Vietnam since 2013, its data shows. It says Vietnam is its third most significant destination in Asia, after China and India.
Chinh suggested Warburg Pincus further its effective coordination with state agencies to increase long-term and sustainable investment in Vietnam. He also said that with its worldwide networks of clients, the firm can continue being a bridge helping investors from the U.S. and other foreign countries access Vietnam.
The same day, the firm announced its decision to invest in a cross-border e-commerce project in Binh Duong province, which borders Ho Chi Minh City. The 75-hectare project will include high-tech factories, warehouses, customs bonded warehouses, showrooms, and offices. It did not disclose the estimated investment for the project.
At his meeting with Binh Duong authorities Wednesday, Kaye expressed his wish that Binh Duong would create favorable conditions for his company so that the project can be carried out soon.
It would be a major strategic project, elevating the e-commerce position of the province and Vietnam, he added.
Binh Duong has attracted $2.6 billion in registered FDI in the first nine months of the year. The U.S. currently ranks 13th among the 65 countries and territories investing in the industrial province, according to provincial data.
This June, Vietnamese property developer Novaland announced the completion of a $250 million financing from a consortium led by Warburg Pincus. The investment is consistent with the private equity firm’s approach of investing behind leading local partners in the market and marks the beginning of a strategic partnership between Novaland and the American firm.