Vietnam PM asks Warburg Pincus to invest 'further and faster'

Prime Minister Pham Minh Chinh has called on Warburg Pincus to invest "further and faster" in Vietnam, especially in an expressway project it proposed in the south.

Chinh made the suggestion at a meeting with Jefferey Perlman, CEO of Warburg Pincus, a New York-based global private equity firm. Perlman is also chairman of the US-ASEAN Business Council (USABC).

Warburg Pincus recently proposed building a VND17.3 trillion ($677 million) expressway connecting the under-construction Long Thanh International Airport in Dong Nai province with its Grand Ho Tram Strip, a group of integrated resorts and residential developments, in Ba Ria-Vung Tau province, both in southern Vietnam.

The cabinet leader asked Warburg Pincus to continue closely coordinating with relevant Vietnamese agencies to soon implement the project.

"This expressway is of great significance in enhancing regional connectivity, promoting the development of high-quality tourism and ancillary services, and maximizing the efficiency of the Ho Tram project which has a very strategic location and great potential to become a major tourist center," he noted.

Building the expressway, the accumulated investment capital of the Ho Tram project might meet the conditions to be granted other favorable policies, under current regulations.

Therefore, the Prime Minister asked Warburg Pincus to continue closely coordinating with the Ministry of Finance, the Ba Ria-Vung Tau People's Committee, and other relevant agencies to report to competent authorities for favorable policy approval, in accordance with the law.

Chinh said he highly appreciates the fund's companionship and sustainable investment over the past decade in Vietnam, including the Ho Tram project, one of the largest resort and entertainment complexes in the country.

The project has made important contributions to tourism development, job creation and budget contribution in the country, he added.

Chinh also noted that he acknowledged the efforts and determination of Warburg Pincus in expanding investment in Ba Ria-Vung Tau and in Vietnam in general, and highly appreciates the proposal on the expressway.

He asked Warburg Pincus to further promote the Vietnam-U.S. trade and cooperation and raise a strong voice with the U.S. government for its soon recognition of Vietnam's market economy status and removal of Vietnam from the list of countries with restrictions on high-tech exports.

"Up to now, Vietnam has basically addressed the concerns of the U.S. side, proactively cutting taxes and purchasing more goods from the U.S. The country is ready to exchange and negotiate with the U.S. on the basis of mutual benefit, towards a sustainable trade balance," the Prime Minister highlighted.

"Vietnam will continue to improve the business environment, reform institutions, build infrastructure, develop human resources, cut administrative procedures, reduce compliance time and costs, bring down logistics costs, and enhance competitiveness for businesses," he added.

In response, Warburg Pincus CEO Jefferey Perlman highlighted that at important moments in the Vietnam-U.S. economic relations, which are developing very strongly, Vietnam has received strong support from U.S. businesses.

He said U.S. businesses consider Vietnam a very reliable partner. Vietnam has been very active in reforming, achieving success in both short and long terms. US investors believe in Vietnam's potential and long-term prospects, he added.

Regarding bilateral trade, Perlman noted that the country has been very active in responding to the concerns of the U.S. side and is continuing to actively remove obstacles for businesses, including US businesses.

He said that Warburg Pincus and he personally, as chairman of USABC, are always ready to provide Vietnam with mutually beneficial solutions on tariffs.

Warburg Pincus is one of the world's leading investment management funds, with over $83 billion worth of assets under its management.

Since 2013, Warburg Pincus has invested more than $2 billion in Vietnam, creating more than 40,000 jobs. Vietnam is the fund's third largest investment market in Asia, after China and India, the Vietnamese government's news portal reported.

In Vietnam, notable projects with investments of Warburg Pincus include Vincom Retail, BW Industrial, Techcombank, MoMo, The Grand Ho Tram, and Xuyen A Hospital.

The investments have demonstrated Warburg Pincus's long-term commitment to contributing to the development of infrastructure, finance, trade, and healthcare in Vietnam.

The Ho Tram project in Ba Ria-Vung Tau is a comprehensive service, tourism and entertainment project with a total investment of $4.23 billion, of which about $1.5 billion has been disbursed.

It has created jobs for more than 2,000 workers and contributed over VND2,200 billion ($85.04 million) to the budget in the past five years.

It is expected that the project will continue to disburse an additional $600 million by the end of 2025, bringing the total investment capital to about $2 billion, the news portal added.

The under-construction Long Thanh airport, located in Dong Nai province, is a mega project with a total investment of VND336.63 trillion ($14.12 billion).

It will be built in three phases, and is set to welcome the first plane to make landing or take off in July 2025.

Once fully completed, the 5,000-hectare airport will be the nation’s biggest, helping reduce overload at Tan Son Nhat International Airport.

Dong Nai, a neighbor of Ho Chi Minh City, is a manufacturing hub in southern Vietnam, together with HCMC, Binh Duong, and Long An.