Expectations for large-scale FDI projects

Intel factory in Ho Chi Minh City. Photo: Le Toan

Project   "monster" landing

A few days ago, Lite-On Quang Ninh Factory started construction in Quang Ninh. With capital   invest   690 million USD, this is one of the large-scale foreign direct investment (FDI) projects implemented recently.

Lite-On specializes in manufacturing electronic components for major global manufacturers such as IBM, Sony, Samsung, Lenovo... The above project is built in Song Khoai Industrial Park - Amata City Ha Long (belonging to the   economy   Quang Ninh coastal area). This is the area identified as the "core" and "new growth driver" of the Western route and of Quang Ninh province.

Therefore, Quang Ninh has high expectations for the success of the above project, in the context that the province is determined to achieve a GRDP growth rate of over 14% this year. When the factory comes into operation (expected in November 2025), it will contribute positively to Quang Ninh's industrial production and exports.

“Lite-On’s decision to invest in Amata City Ha Long not only demonstrates its trust in Amata, but also strengthens Vietnam’s position as a key player in the global electronics supply chain,” said Mr. Shiro Sadoshima, Executive Advisor of AMATA Corporation PCL, on the day the project began construction.

Not only Lite-On believes in Vietnam, many global giants are also planning large investments in Vietnam. SCG is an example. In a recent meeting with Prime Minister Pham Minh Chinh, Mr. Kulachet Dharachandra, General Director of Long Son Petrochemical Company Limited, said that the Long Son Petrochemical Complex Project (invested by SCG Group), with an investment capital of 5 billion USD, has been completed and put into operation. Now, the plan to invest an additional 400 million USD in the Project is being promoted.

According to information, during the meeting with Prime Minister Pham Minh Chinh, many other global "giants" also shared plans to continue investing billions of USD in Vietnam. In particular, Hyosung wants to invest an additional 1.5 billion USD to implement biotechnology and carbon fiber production projects in Ba Ria - Vung Tau; Warburg Pincus continues to invest on a large scale in the project in Ho Tram, and at the same time invest in building a connecting route from Long Thanh Airport to Ho Tram Project (Ba Ria - Vung Tau), with a total investment of about 17,300 billion VND...

Previously, Saigon Asset Management Investment Fund, after launching the SAM DigitalHub Data Center in Binh Duong, planned to raise capital for the first time for the Vietnam Data Center Fund, with a total value of 300 million USD... And it is impossible not to mention the billion-dollar investment plan for a large-scale semiconductor project of a technology "giant". This plan has not been specifically announced, but it also shows the attractiveness of the destination Vietnam.

“Vietnam has a stable and favorable investment environment for   business   development", Mr. Bae In Han, General Director of Hyosung Dong Nai and the highest representative of Hyosung in Vietnam said so in a recent meeting with Prime Minister Pham Minh Chinh, at the same time mentioning the commitment to "putting a 100-year future in Vietnam" that the leaders of Hyosung Group have repeatedly emphasized.

Promoting investment attraction in the new era

There are up to two important investment conferences scheduled to be held by the Ministry.   Finance   co-organized on Friday (March 28). These are the Conference on Capital Mobilization and Foreign Investment Attraction in the New Era: Opportunities and Challenges and the Conference on Building a Financial Center in Vietnam.

These events are of great significance in the context that Vietnam still wants to continue attracting foreign investment, including both indirect and direct investment, especially attracting investment for the formation, construction and development of financial centers in Vietnam, to promote economic growth to reach 8% or more this year and reach double digits in the coming period.

Among the solutions proposed to promote growth and breakthrough growth, attracting foreign investment, especially in pioneering industrial sectors and promoting the construction of an international financial center are among the top solutions.

In this context, the fact that global giants are making large-scale investment commitments is a positive move. However, the important question is, how can Vietnam attract more high-quality investment capital?

According to information, at the conference on capital mobilization and foreign investment attraction in the new era, representatives of the Ministry of Finance will share orientations for attracting foreign investment in the new era, and listen to investors' opinions on investment capital flow trends in the world, challenges and opportunities, as well as solutions that need to be implemented to welcome the new era of foreign investment flows.

In fact, in recent times, in order to attract quality investment capital, Vietnam has made great efforts to improve the investment and business environment, create favorable conditions for foreign investors, build special incentive mechanisms, establish an Investment Support Fund, apply “green channels” for large-scale projects in priority areas, etc. These timely policy reflections have received the consensus and high appreciation of investors.

However, there are still issues that need further reform. That is why, in meetings, representatives of foreign investors still make many policy recommendations. For example, in a recent meeting with Prime Minister Pham Minh Chinh, Mr. Bae In Han proposed establishing a one-stop mechanism to quickly resolve difficulties and problems related to the legal framework. He also mentioned recommendations on tax incentives, tax refunds, etc.

The recent US business delegation to Vietnam also expressed their hope that Vietnam will continue to reform administrative procedures and shorten decision-making time. Investment incentive policies, especially in areas such as semiconductors and AI, including the development of an international financial center, have been mentioned many times by investors.

Regarding this issue, Prime Minister Pham Minh Chinh pledged to create favorable conditions for foreign investors, while affirming that "nothing is impossible, no saying yes but not doing" when resolving investors' problems.

There will continue to be policy messages delivered at upcoming conferences. These messages will contribute significantly to Vietnam welcoming more “huge” projects, as well as attracting more FDI in the new era.

Source: https://baoquangninh.vn/dat-ky-vong-vao-cac-du-an-fdi-quy-mo-lon-3350415.html