US companies including Netflix and Boeing join ‘biggest' business mission to Vietnam

CNN Hong Kong --

This week, dozens of American companies visited Vietnam in an effort to expand their reach into the rapidly-growing Southeast Asian economy. The country has been a promising alternative to China for companies looking to diversify their supply chains and markets.

The largest business mission organized by the US-ASEAN Council Business Council has attracted 52 senior executives from US companies, according to CNN.

The annual trip is led by Ted Osius (ex-US Ambassador to Vietnam), and begins Tuesday and ends on Thursday. Although the council didn't specify who was there, corporate giants Boeing (BA), and Netflix (NFLX), confirmed that they were part of the delegation.

Boeing's Southeast Asia president and Vietnam managing director will represent the aerospace company and are expected to meet with government officials.

It said that the discussions would focus on Boeing's expanding partnership with Vietnam as well as ways to strengthen Vietnam's aviation capabilities and defense capabilities.

According to the statement, Boeing had been expanding its presence in Vietnam through investments in local capability building and collaboration with Vietnamese organizations in manufacturing, infrastructure, engineering, safety, sustainability, research, technology, training, as well as skills development.

Netflix declined further comment. According to someone familiar with the matter Netflix is looking into how it can comply with a new regulation which requires foreign media companies to obtain a business license from Vietnam to offer streaming services.

According to the person, the firm wants more information on Decree 71, which took effect January after the trip.

Although Netflix has no direct presence in Vietnam, its streaming service is available.

This could soon change. Reuters last month reported that Netflix was planning to open its first office here, citing unnamed sources. Netflix declined to comment.

This week's US-based companies' blitz highlights how Vietnam is becoming a desirable destination for foreign investors. The country's rapid economic growth and growing middle class continue to attract investors. The country's GDP grew by 8% last fiscal year, despite a wider global slowdown.

The slowdown continues to have a negative impact on the country of over 97 million people. This puts it at greater risk. Capital Economics says Vietnam, one of the most trade-dependent countries in the world, would be among the hardest hit by any further declines in global export demand this year.

Oxford Economics recently predicted that the country's GDP would fall to 4.2% by 2023. This was based on a weak outlook from its global trading partners, and rising financial risk.