Vietnam-based IT company Rikkeisoft has announced plans to invest $30m (VND731.85bn) in the US, with a significant chunk of money going into human resource development, infrastructure and planned mergers and acquisitions.
The announcement came during the Vietnam and United States Business Forum – Technology and Cooperation, which took place in San Francisco on 18 September. The forum was attended by business delegations from both countries, as well as Vietnam’s Prime Minister, Pham Minh Chinh.
Rikkeisoft will initially spend $2m by the end of 2023, with the remaining $28m to be invested between 2024 and 2026.
“This investment is more than a financial infusion, it is a solution to the pressing talent shortage in the US tech industry,” said Tung Bui, senior executive vice-president of Rikkeisoft and CEO of RKTech, Rikkeisoft’s subsidiary. “With Vietnam’s burgeoning, highly skilled and cost-effective tech talent, we are uniquely positioned to offer value-added services to US clients. Rikkeisoft’s goal is not just to reach an initial public offering in the US in 2028, it is to fundamentally enrich the US tech landscape by providing a sustainable solution to talent scarcity.”
News of the investment comes after a brief and historic visit by US President Joe Biden to Vietnam in early September, seen by many as a bid to counter China’s influence in South East Asia.
Tensions between Washington and Beijing over trade competition and technology issues have increased over the past year, with both countries engaging in aggressive rhetoric.
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Vietnam has since come forward as a reliable alternative to the Chinese investment market; however, experts continue to doubt Hanoi’s willingness to prioritise its relationship with the US over that with China.
In April 2023, Chinese stainless steel manufacturer Yongjin Metal introduced plans to build a second factory in Vietnam, which will have a total capacity of 260,000 tonnes once completed.
Rikkeisoft plans to generate hundreds of tech-focused jobs in the US market. Tung Ta, chairman of Rikkeisoft, said he expects his company to reach a market capitalisation of $1bn, adding: “Consequently, a substantial market like the US can significantly contribute to Rikkeisoft’s realisation of this goal.”