Foreign investors accelerate, Vietnam is ready to welcome large capital flows

Vietnam has many favorable factors to maintain foreign investment flows and even attract many large-scale projects in the coming time.

Recently, large technology corporations have continuously invested in Vietnam. Photo: Le Toan

Foreign investors accelerate into Vietnam

Uniqlo – a global fashion retail brand from Japan, has just officially announced its plan to expand its retail store system in major cities such as Hai Phong and Ho Chi Minh City, with 2 new stores at Vincom Plaza Imperia (Hai Phong) and Parc Mall (Ho Chi Minh City). These are Uniqlo’s 25th and 26th stores, after nearly 5 years of operation in Vietnam.

“Opening retail stores in strategic cities is an important part of our long-term plan in Vietnam,” said Nishida Hideki, General Director of Uniqlo Vietnam.

Uniqlo is not the only investor looking to expand its investment and business activities in the Vietnamese market. Up to 7 Chinese enterprises have just received approval from Hai Phong City to invest and continue to increase their investment capital in this port city, with a total registered capital of 190 million USD.

In addition to the projects that have been officially “finalized”, a series of memorandums of understanding (MOUs) were signed within the framework of the recent investment promotion trip to China by Hai Phong City leaders. One of these is the MOU on Exquisite Power Vietnam Co., Ltd.’s plan to expand its project of assembling batteries for mobile phones and laptops in Nam Dinh Vu Industrial Park, with an additional investment capital of nearly 100 million USD…

Since the beginning of the year, in addition to approximately 10.76 billion USD of newly registered capital, foreign investors have registered to expand investment by 4.97 billion USD, up 19.4% over the same period last year. Among the increased projects, the most notable is Amkor's semiconductor project, which increased its capital by 1.07 billion USD.

These are not small investments, continuing to prove that Vietnam is an attractive destination. And not only has capital increased, but according to Minister of Planning and Investment Nguyen Chi Dung, the quality of foreign investment flows has also increased sharply, thanks to careful selection of investment attraction.

These moves may contribute significantly to answering the question posed in the “Vietnam at a glance – FDI” report, published by HSBC Global Research on August 8. In the report, HSBC experts asked whether, in the context of intense global competition to attract foreign investment, Vietnam can maintain the strong inflow of investment capital since joining the World Trade Organization in 2007?

Ready to welcome large capital flows

Asked, but HSBC itself answered and affirmed the attractiveness of Vietnam as an investment destination. HSBC experts even said that Vietnam's participation in the global value chain has increased sharply over the years and is currently "comparable to Singapore".

“ Vietnam is competitive with other countries thanks to its statutory corporate income tax rate of 20%. Some businesses can take advantage of extended tax breaks and exemptions to further reduce their effective tax rate,” HSBC experts said.

Deep participation in the global value chain is one of the factors that, according to HSBC, makes Vietnam attractive to foreign investors. Other favorable foundations of Vietnam are competitive costs and policies supporting the foreign investment sector, including tax incentives. In addition, there are advantages related to free trade agreements signed with partners, labor qualifications, and the Government's facilitation of the investment environment, etc.

In the report, HSBC also mentioned the investment capital flow from South Korea, especially Samsung, into Vietnam in recent times. And recently, there has been a trend of leading Chinese manufacturing companies increasing their investment in Vietnam, with nearly 20% of newly registered capital originating from mainland China in 2023. "The efforts of these early market entrants have encouraged other large technology corporations to invest in Vietnam's manufacturing capacity," HSBC's report stated.

That is a fact, because recently, large technology corporations have continuously invested in Vietnam. Amkor is just one example. Besides, there are also Foxconn, Quanta, Goertek, LG…

Foxconn Group invested in a project worth over 383 million USD in Bac Ninh earlier this year and recently continued to invest 550 million USD in Quang Ninh. Meanwhile, Hyosung Group, after investing over 5 billion USD in Vietnam, is planning to invest in a 300 million USD data center in Ho Chi Minh City, and is also planning to turn Ba Ria - Vung Tau into a center for biotechnology and advanced materials production in Vietnam and the region.

In addition to the above projects, the Adani Group of Asia's richest billionaire, with assets of 122 billion USD - Gautam Adani, also plans to invest in Vietnam in the near future, with a total investment capital of about 10 billion USD. According to the plan, Adani wants to invest about 2 billion USD in Lien Chieu port, 2.8 billion USD in Vinh Tan 3 Thermal Power Project. In addition, the Group also wants to invest in Long Thanh Airport Phase II, Chu Lai Airport projects...

“With our financial and technical capabilities, we will participate deeply in many projects in Vietnam. That is my personal commitment,” Mr. Gautam Adani told Prime Minister Pham Minh Chinh in India recently, expressing his hope that the Prime Minister will push the Group to fulfill this commitment.

The Prime Minister assigned Minister of Planning and Investment Nguyen Chi Dung and relevant agencies and localities to directly discuss with Adani Group immediately after that meeting to thoroughly handle related issues, agree on methods, and implement procedures according to regulations. And Minister Nguyen Chi Dung also immediately had a meeting with Adani Group.

Here, after listening to the questions and problems raised with Adani in the process of promoting projects in Vietnam, Minister Nguyen Chi Dung frankly said: "If you have any problems or need any support, please share and discuss with us. We will work with the Vietnamese authorities to research, resolve and support."

Such openness and receptiveness are the first and most important factors for Vietnam to continue to receive large capital flows from foreign investors.

Source: https://baodautu.vn/nha-dau-tu-ngoai-tang-toc-viet-nam-san-sang-don-dong-von-lon-d222173.html