Many large global corporations have been and continue to plan to "land" to invest in Vietnam.
"The big guy" landed
Information in recent days, Foxconn Group (Taiwan, China) has just decided to invest nearly 400 million USD to build a factory specializing in manufacturing electronic components, assembling and processing printed circuit boards PCB. The project will be located in Nam Son - Hap Linh Industrial Park, where Goertek Group (Taiwan, China) started construction of a 280 million USD electronic components factory in May last year.
The story is not just about investments of hundreds of millions of dollars or even billions of dollars, but importantly, when Foxconn or Goertek accelerate their investment in Vietnam, it means that technology giants such as Apple, Google, Huawei or Nokia... have chosen Vietnam as the location to manufacture their products. Foxconn and Goertek are all original equipment manufacturing partners for these technology companies.
Just two weeks ago, Nokia announced a partnership with Foxconn to manufacture 5G devices in Bac Giang. The project will start next July and will increase production from September 2024.
“We are pleased to expand our partnership with Nokia to manufacture the company’s latest 5G products in Vietnam. This highlights Vietnam’s role as a preferred manufacturing destination,” said a Nokia representative, adding that Foxconn has been operating in Vietnam for more than 17 years and with the collaboration project with Nokia, Foxconn hopes to increase its contribution to the Vietnamese economy.
Mr. Brand Cheng, Chairman and CEO of Foxconn, also recently met with Prime Minister Pham Minh Chinh in China. Recalling the story at the meeting in January last year, Foxconn reported to the Prime Minister the plan to open another factory in Vietnam, Brand Cheng said that this project began production in January this year.
“Vietnam is developing rapidly and we are developing with Vietnam,” said Mr. Brand Cheng, adding that Foxconn factories have so far been located in five localities in Vietnam, with a total investment of 4 billion USD.
Meeting with the Prime Minister in China, PepsiCo's leader said that after 30 years, the Group has invested 850 million USD in Vietnam and will continue to increase investment, especially in the fields of agriculture, food processing, etc.
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| The Vietnamese government expects Samsung to expand its investment in the semiconductor sector. Photo: Duc Thanh |
And not only these two groups, recent information shows that many large foreign groups are still planning to invest and expand their investment in Vietnam. For example, during the recent visit to Vietnam by Russian President Vladimir Putin, a cooperation agreement between the Vietnam Oil and Gas Group and Russia's Novatek Company was signed. Russia's Zarubezhneft Group has also received an adjusted investment registration certificate for Block 11-2.
Two major Chinese enterprises, Dalian Locomotive and Rolling Stock Company (CRRC) and Power Construction Corporation of China (PowerChina), have also pledged to support and provide advanced technology to promote Vietnam's railway system.
“Vietnam is still an attractive destination for foreign investors,” said Mr. Nguyen Dinh Nam, Chairman of the Board of Directors and General Director of IPA Vietnam, at the Vietnam Industrial Connection Conference.
“Waiting” for Korean investors and semiconductor projects
According to data from the Foreign Investment Agency, in the first 6 months of the year, the total foreign investment capital registered in Vietnam, including newly registered capital, additional capital and investment capital through capital contribution and share purchase, was nearly 15.2 billion USD, up 13.1% over the same period last year. Meanwhile, disbursed capital reached about 10.84 billion USD, up 8.2% over the same period in 2023.
The acceleration of foreign investment flows into Vietnam can be said to be partly due to the effect of Vietnam's economic diplomacy policy. High-level meetings have opened up many great opportunities for Vietnam in attracting foreign investment, especially projects in the fields of semiconductors and AI - which are currently the focus of attention of global investors. Therefore, Prime Minister Pham Minh Chinh's visit to Korea is expected to make an important contribution to bringing investment flows from Korea back to Vietnam more strongly.
In recent years, due to internal economic difficulties, Korean investment in Vietnam has been slowing down. The statistics after the first half of 2024 of Korean investors were only over 1.4 billion USD. However, cumulatively, Korea still invested in Vietnam up to more than 87 billion USD, ranking first among countries and territories investing in Vietnam. Moreover, although the total investment capital is not the largest, in the first 6 months of 2024, Korea still led in the number of projects adjusting capital and the number of investments through capital contribution and share purchase.
According to the report of the Foreign Investment Agency, currently, many large Korean corporations, such as Samsung, LG, Hyosung... have been and are making large investments in Vietnam. In a meeting with Deputy Prime Minister Le Minh Khai in May 2024, Mr. Lee Sang Woon, Vice President and CEO of Hyosung Group (Korea), said that since 2007, the Group has invested more than 4 billion USD in Vietnam, mainly in the fields of textile, chemical, and raw materials industries. In particular, at the beginning of this year, Hyosung invested in a carbon fiber factory with an investment capital of 730 million USD in Ba Ria - Vung Tau.
According to Mr. Lee Sang Woon, Hyosung is currently looking to invest in an ATM factory in Vietnam. Along with that, Hyosung also plans to invest in a Big Data center in the Ho Chi Minh City High-Tech Park.
Meanwhile, in recent years, LG and Samsung have also continuously invested in Vietnam. According to Mr. Choi Joo Ho, General Director of Samsung Vietnam, every year, Samsung increases its investment by about 1 billion USD in Vietnam. "In 2023 alone, we increased our investment in the semiconductor chip grid production line by about 500 million USD, bringing the total additional investment scale for the year to 1.2 billion USD. In 2024, we plan to invest an additional 500 million - 1 billion USD in Vietnam," said Mr. Choi Joo Ho.
As for Samsung, the Vietnamese government is expecting this investor to expand into the semiconductor sector, one of the strengths of the world's leading technology company. Semiconductors and AI are the sectors that many foreign investors have recently wanted to invest in Vietnam.
“Many of the world’s leading technology corporations are looking to invest in the chip and electronics industry in Vietnam,” Prime Minister Pham Minh Chinh said at the Dialogue with the startup and innovation business community of the World Economic Forum (WEF).
In fact, currently, many "big guys" in the semiconductor and AI industries have been investing in Vietnam, such as Intel, Amkor, HanaMicron, Samsung, Sysnopsys, Google, NVIDIA... Opportunities are still opening up.
During his recent working trip to the US, Minister of Planning and Investment Nguyen Chi Dung also met with leaders of ARM, Marvell, and Google and called on these companies to increase their investment in Vietnam. Within the framework of Minister Nguyen Chi Dung's visit to the US, the first Vietnam-US Economic Dialogue was held to promote cooperation between the two countries in general, including economic, trade, and investment cooperation.
According to information, at the Forum, the two sides discussed and proposed specific solutions in five areas: establishing cooperation to build a semiconductor industrial ecosystem; cooperation in energy and key minerals; cooperation in the business environment; promoting the attraction and maintenance of high-quality investment, controlling strategic exports; cooperation in key information technology infrastructure and cybersecurity.
The two sides reaching important agreements, especially on issues related to the semiconductor ecosystem, is opening up great opportunities for Vietnam to promote investment attraction in the fields of Industry 4.0.
Source: https://baodautu.vn/dai-bang-do-bo-co-hoi-moi-tiep-tuc-mo-ra-d218706.html
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