Invest

FDI capital keeps strongly flowing into high-tech industrial projects

Trường Lăng

June 9, 2022

Invest

FDI capital keeps strongly flowing into high-tech industrial projects

Trường Lăng

June 9, 2022

In the ever-increasing flow of foreign investment, an important segment – high-tech industrial projects – keeps strongly flowing into Vietnam.

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Many projects of manufacturing and manufacturing electronic and high-tech products have expanded on a large scale in recent years

Investment capital increase in high technology

One information is always emphasized by the Foreign Investment Department (Ministry of Planning and Investment) in the recent reports on the foreign investment attraction situation that there are many projects to produce and manufacture high-quality electronics and high technology products expanded on a large scale.

Mr. Do Nhat Hoang, Director of the Foreign Investment Agency mentioned a series of projects to prove the above judgment: Samsung Electro-mechanics Vietnam project (Thai Nguyen), the fund increased by USD 920 million; The project of factories manufacturing electronics, network equipment and multimedia audio products (in Bac Ninh, Nghe An and Hai Phong) – increased by nearly USD 306 million, USD 260 million and USD 127 million respectively; Electronic component factory project (Phu Tho) – increased by USD 163 million…

Reported by the Ministry of Planning and Investment in the third session, the 15th National Assembly, when additionally evaluating the performance of the 2021 Socio-Economic Development Plan, the last year investment capital attraction gained USD 38.85 billion, up 25.2% compared to 2020.

Particularly, there is one project in the high-tech field with a capital scale of over $3 billion out of the 3 billion-dollar updated projects. It can be said that this project has made an important contribution to significantly increase investment capital in the high-tech sector in Vietnam, and also affirms the foreign investors tend to “prefer” to choose Vietnam as their production base.

Within the framework of the recent visit to the US, Prime Minister Pham Minh Chinh received the leaders of a series of the big corporations, including famous corporations in the high-tech field, such as Intel, Apple, and Google. These corporations affirm that they are all “aiming” at Vietnam.

Intel has completed Phase I investments and is preparing for Phase II. Said Mr. Tim Cook, CEO of Apple, Apple wants to expand the supply chain in Vietnamese market. Once Apple decides to expand the supply chain, Foxconn, Goertek, Pegatron, Winston… will be able to continue to expand their investment in Vietnam in the coming time, because they are the product outsourcing entities for Apple.

Although Apple is known to have no any direct manufacturing plant in Vietnam, there are 31 factories of original equipment manufacturing partners in 14 provinces and cities of Vietnam, with about 160,000 workers. If Apple continues to choose Vietnam, the figure will keep increasing.

Opportunities to be a “winner””

In addition to the capital in the high-tech sector, foreign investment in Vietnam is generally still in a positive trend. With the data released by the Foreign Investment Agency, over USD 11.71 billion of foreign investment capital registered in Vietnam in the first 5 months of the year, by 83.7% over the same period of 2021.

The reduction is mainly due to the continued decrease in newly registered capital and there are so many large-scale projects in the same period last year. Both adjusted capital and investment capital through capital contribution and share purchase is however, increased sharply. Specifically, newly registered capital reached nearly USD 4.12 billion, down 53.4%; adjusted capital reached USD 5.61 billion, up 45.4%; capital contribution and share purchase reached over USD 1.98 billion, up 51.6% over the same period.

“Despite the adverse effects of Covid-19 pandemic, foreign investors still put their faith in Vietnam’s economy and investment environment and make the investment decisions to expand the existing projects”, said the Foreign Investment Agency.

Besides, foreign investment managers make such optimistic assessments. At the 2022 Vietnam Industrial Real Estate Forum, recently organized by the Investmentnews, the assessment comments are very positive about Vietnam’s industrial real estate market. And of course, these open opportunities’ stem from the trend of increasing foreign investment in Vietnam.

Although Bruno Jaspaert, General Director of the DEEP C Industrial Park Complex thinks that China is still the world’s big factory but when referring to the trend of many investors moving production out of China, he affirms: “Vietnam is a country with a good position and owning many advantages to become a ‘winner’ in receiving the capital flows of the China trend +1”.

When there are tensions in the world, ASEAN will be a good area to attract investors, in which Vietnam is an ideal destination, said Mr. Pao Jirakulpattana, Vice President of Warburg Pincus Singapore Investment Fund.

A recent survey of 1,500 companies from China, France, Germany, India, the UK and the US conducted by HSBC shows that all of these enterprises are operating or planning to operate in the Southeast Asia in the future. In which, Vietnam is rising to become the global manufacturing hub and to be attractive to international investors.


“After the discussions of HSBC Vietnam with multinational corporate customers, we believe that more global enterprises’ trend to shift their investments to Vietnam is strategic and permanent but not temporary”, said Mr. Tim Evans, General Director of HSBC Vietnam.

Source : Baodautu

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