Oakland and Danang looking to develop sister-city relationship
June 5, 2007 by SwizStick
Filed under Seafreight, Supply Chain Management
Everyone is talking about Vietnam these days, but I’ll admit I was surprised to find out that Vietnam is California’s fastest growing export destination and that the U.S. is Vietnam’s largest trading partner, which I learned from this article in the SF Chronicle. It concentrates on the port city of Danang, which the port of Oakland has already signed a cooperation agreement with and is now looking to develop a sister-city relationship.
The city’s U.S.-built seaport and its bustling river port, a remnant of French colonial rule, have drawn the attention of the Port of Oakland, which signed a cooperation agreement with Danang Port last year. The two cities are working on establishing a sister city relationship.
Vietnam is now California’s fastest growing market for exports, and the United States is Vietnam’s largest trading partner. Last year, Vietnam exported $8.5 billion worth of goods to the United States, mostly textiles, footwear, seafood and crude oil. The United States shipped $1.1 billion into Vietnam, of which $258 million came from California, mostly transportation equipment, computers, machinery, chemicals and agricultural crops.
“It’s a golden opportunity for investors,” said the World Bank’s Hung Pham Cuong who says Danang’s key coastal position and expanding road network could make it “the second Singapore.”
Danang is a city of mixed memories, having earned a reputation as the scenic recuperation spot for American soldiers during the Vietnam War. The city also saw intense fighting as the historically significant dividing line between North and South Vietnam. Twenty years later, when companies like Emmerich’s attempted to enter the market, Danang illustrated that Vietnam was not quite ready for foreign investment. Businesses were confounded by bureaucratic snafus, inadequate infrastructure, and ignorance about how to advertise their goods and services.
Today, Vietnam’s newspapers are filled with stories about new investments in high-rise commercial and residential buildings in the north and new industrial parks in the south. One of the fastest growing economies in the world, Vietnam’s total foreign direct investment is booming and expected to reach more than $20 billion this year, twice that of 2006. Danang attracted only $450 million of foreign direct investment last year, but that’s seven times more than two years ago. The number of foreign investment projects has increased tenfold during this same time period, a key sign of investor confidence in this emerging market.
“Ho Chi Minh City is like New York, Hanoi is like Washington and Danang is like California,” said Nguyen Quan Tuan from Danang’s Foreign Affairs Department. “Everybody has to come here at some point, and it has one of the most beautiful beaches in the world.”
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