US companies sign billions in business deals with Vietnam
I heard from US officials ahead of the trip that just signing deals with US companies was nice but not enough. Murray Hiebert, expert at the Center for Strategic and International Studies in Washington
WASHINGTON/SEATTLE: US companies signed business deals with Vietnam worth over US$8 billion including power projects and jet engines from General Electric Coand diesel generator technology from Caterpillar, the Commerce Department said.
The 13 deals were announced as Vietnamese Prime Minister Nguyen Xuan Phuc met with US President Donald Trump as part of a three-day, trade-focused trip to the United States.
US Commerce Secretary Wilbur Ross, who has pledged to shrink US trade deficits, said the transactions would include US$3.4 billion in US produced content that would support 23,000 jobs.
But the Trump administration still wants more work from Vietnam to bring down a rapidly growing US$ 32 billion trade surplus with the United States, said Murray Hiebert, a Southeast Asia expert at the Center for Strategic and International Studies in Washington.
“I heard from US officials ahead of the trip that just signing deals with US companies was nice but not enough,” Hiebert said.
GE said on Wednesday it had signed deals in Vietnam worth about US$5.58 billion for power generation, aircraft engines and services, its largest single combined sale with the country in GE’s history.
GE’s agreement with Vietjet Aviation includes 20 jet engines made by CFM International, a joint venture of GE and Safran SA of France. It also includes a 12-year engine service contract for 215 LEAP-1B engines on 100 Boeing 737 MAX aircraft that Vietjet has ordered, GE said.
GE’s power unit signed a memorandum of understanding to build two 750- megawatt gas fired turbine power plants in conjunction with state energy group PetroVietnam, using the Blue Whale gas field.
GEalsosignedajointdevelopment agreement to erect an 800-megawatt wind power facility. Partners in the agreement are Phu Cuong Group and International Mainstream Renewable Power, GE said.
Honeywell also signed a US$100 million deal to supply VietJet with 98 auxiliary power units for the airline’s new fleet of Airbus A320 aircraft, including maintenance for 12 years.
Caterpillar and its dealer in Vietnam, Phu Thai Cat, agreed to provide generator management technology for more than 100 generators in Vietnam, the company said. The technology would allow for remote function monitoring including fuel, temperature and pressure. The value of the Caterpillar deal was not disclosed.
Hilton Worldwide signed a deal worth US$650 million to manage a 610-room dual-branded hotel in Vietnam, while port security firm Passport Systems Inc signed a deal worth US$1 billion, with US$420 million in US content, Commerce said. — Reuters