Foreign capital flows maintain growth momentum amid policy storm...

Launch of trillion dollar project

Recently, Phu My Hung Corporation has officially launched the Hong Hac urban area project (Hong Hac City) in Thuan Thanh, Bac Ninh province, with a total investment of up to 1.066 billion USD. This is the first strategic step of Phu My Hung to expand its development footprint to the Northern market, after a journey of more than three decades of successfully creating and operating Phu My Hung urban area - a leading modern urban symbol in Ho Chi Minh City.

Mr. Truong Quoc Hung, Deputy General Director of Phu My Hung, shared: “Hong Hac City is not just a simple real estate project, but also an important milestone marking the transformation in our development strategy”. According to him, the enterprise is aiming to spread the philosophy of developing civilized and modern urban areas to many localities across the country, and Hong Hac City is the first brick on that journey.

Back in 1993, when the first wave of foreign investment flooded into Vietnam, Central Trading & Development Group (CT&D) from Taiwan pioneered cooperation with domestic partners to develop Nguyen Van Linh Boulevard and Phu My Hung urban area on the swampy land in the southern districts of Ho Chi Minh City. This project not only changed the face of the area but also became a model in attracting foreign direct investment (FDI). Now, Phu My Hung continues to affirm its position in the North with an equally modern urban area - Hong Hac City.

At the conference to announce the planning and promote investment in Bac Ninh province in 2024 held in September last year, the provincial government granted the decision to approve the investment policy for the Hong Hac City project, with a total investment capital exceeding the 1 billion USD mark, of which the additional capital alone reached 998 million USD. The project is considered one of Bac Ninh's strategic highlights in attracting large investors.

Along with Hong Hac City, recent times have also seen a strong acceleration of investment from foreign corporations in Vietnam. For example, AEON Vietnam has just started construction of a shopping mall project in Hai Duong with a total investment of more than VND 1,180 billion. This is the second shopping mall directly implemented by AEON Vietnam - previously, AEON MALL centers were mainly managed by AEON MALL Company.

Mr. Tezuka Daisuke, member of the Executive Board and Chief Representative of AEON Group in Vietnam, emphasized: “Vietnam is our second key market, after Japan”. This explains AEON’s strong investment expansion plan in Vietnam in recent times. It is expected that on April 26, AEON MALL Can Tho – a project with a total capital of about VND 5,400 billion (equivalent to USD 230 million) – will also officially start construction, extending the group’s development milestones in this potential market.

Phu My Hung Corporation has officially launched the Hong Hac urban area project (Hong Hac City) in Thuan Thanh, Bac Ninh province, with a total investment of up to 1.066 billion USD.

Maintaining the position of a global investment “magnet”

The launch of a series of new foreign investment projects, especially the billion-dollar project of Phu My Hung, is contributing to "warming up" the picture of attracting FDI capital to Vietnam, in the context of escalating global trade tensions due to US tariff policies. Despite concerns about the possibility of a decline in international investment capital flows, Vietnam still shows strong attraction to large corporations in the world.

In early April 2025, after US President Donald Trump announced a policy of imposing reciprocal tariffs on goods from a number of countries, including Vietnam — although the policy was later suspended for 90 days — Mr. Adam Sitkoff, Executive Director of the American Chamber of Commerce in Vietnam (AmCham), affirmed that this would not deter foreign investors. According to him, Vietnam remains an attractive destination, and there is no sign of a wave of mass capital withdrawal from this market.

In fact, many global giants are still actively expanding their operations in Vietnam. Typically, SK Group (Korea), in a recent meeting with Minister of Industry and Trade Nguyen Hong Dien, reaffirmed its investment plan in LNG projects, artificial intelligence (AI) centers, innovation, and the hydrogen and logistics sectors. After pouring 3.5 billion USD into Vietnam, SK continues to prepare to implement a new investment plan with a scale of many billion USD.

Not only SK, the technology giant Qualcomm has also just announced plans to build an AI technology research and development center in Vietnam — the company's third largest R&D center after India and Ireland. Mr. Jilei Hou, Senior Vice President of Engineering at Qualcomm, said that the company has acquired MovianAI — a subsidiary developing generative artificial intelligence (genAI) of VinAI, as a strategic step to develop the AI ​​ecosystem in Vietnam.

Warburg Pincus Investment Group also continues to affirm its long-term commitment to Vietnam. After investing more than 2 billion USD, Warburg Pincus continues to expand its scale, making Vietnam the third largest investment market in Asia, after China and India. In the near future, the group plans to invest 17,300 billion VND to develop the expressway connecting Long Thanh Airport with the Ho Tram Project, contributing to increasing the exploitation efficiency of the 4.2 billion USD tourism complex that they participated in more than a decade ago.

These developments are clear evidence of Vietnam’s attractiveness in the eyes of international investors. Although the 46% reciprocal tax imposed by the US on some exports from Vietnam may create short-term concerns, according to Mr. David Jackson, General Director of Avison Young Vietnam, the country still maintains its position as an attractive investment destination thanks to its abundant labor force, competitive production costs, strategic geographical location and effective FDI attraction policies.

Source: https://baodaknong.vn/dong-von-ngoai-giu-da-tang-giua-con-bao-chinh-sach-thue-250355.html