In the report on foreign investment attraction in the first 9 months of 2024, the Foreign Investment Agency (FIA) once again emphasized that many large projects in the fields of semiconductors, energy (production of batteries, photovoltaic cells, silicon bars), manufacturing of components, electronic products, and products with high added value have received new investment and capital expansion in the past 9 months.
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| Amkor Technology Vietnam factory in Yen Phong II-C Industrial Park. (Source: Investment Newspaper) |
Positive and promising FDI attraction
The more positive trend in attracting foreign direct investment (FDI) is becoming increasingly clear, as data from the Foreign Investment Agency (Ministry of Planning and Investment) shows that in 9 months, the total registered foreign investment capital reached more than 24.78 billion USD, an increase of 11.6% over the same period in 2023.
In September 2024 alone, the figure was more than 4.26 billion USD, accounting for 17.2% of the total foreign investment capital registered in Vietnam in 9 months. This is quite an impressive figure in the context of global investment flows slowing down due to the impact of global geopolitical fluctuations and the absence of large-scale projects.
It is easy to understand why the September figures are so positive. This is the time when many localities, such as Bac Ninh, Binh Duong, Dong Nai, etc., officially announce the Provincial Planning, combined with investment promotion activities. At these events, many projects were granted new and expanded investment certificates. Therefore, the total registered investment capital, or the additional investment capital alone, reached the highest level since the beginning of the year.
According to the Foreign Investment Agency, in September 2024, there were 3 large capital adjustment projects, contributing to bringing the total additional investment capital in 9 months to more than 7.64 billion USD, an increase of 48.1% over the same period.
The largest of these three projects is the project to increase capital by 998 million USD, bringing the total investment capital to more than 1.066 billion USD in Bac Ninh. This is a project in the real estate sector and is the second billion-dollar project to "land" in Vietnam this year, besides the project to increase capital by 1.07 billion USD of semiconductor manufacturer Amkor.
In addition to the above project, in September 2024, Luxcase Precision Technology Company was also approved by Nghe An province to increase its capital by an additional 299 million USD, bringing the total investment capital of the project to 473 million USD. Meanwhile, Advance Tire Vietnam Company in Tien Giang also increased its capital by more than 227 million USD, bringing the total investment capital of the project to more than 615 million USD. Notably, Luxcase's project was only granted an investment certificate at the beginning of this year, with an initial investment capital of 24 million USD, but has increased its capital twice to reach nearly half a billion USD.
“Attracting foreign investment is a bright spot of Vietnam’s economy,” Deputy Minister of Planning and Investment Tran Quoc Phuong said at a recent plenary session of the National Assembly’s Economic Committee.
In the Government's report recently sent to the National Assembly Standing Committee, this was once again confirmed. Not only did registered capital increase quite positively, but so did disbursed capital. In the first 9 months, realized foreign investment capital reached 17.3 billion USD, up 8.9% over the same period in 2023.
Aiming for 39-40 billion USD
Not only in numbers, the “bright spot” in attracting foreign investment in Vietnam also lies in projects in pioneering industrial sectors. That is, the quality of foreign investment capital is improving day by day.
In the report on foreign investment attraction in the first 9 months of 2024, the Foreign Investment Agency once again emphasized that many large projects in the fields of semiconductors, energy (production of batteries, photovoltaic cells, silicon bars), manufacturing of components, electronic products, and products with high added value have received new investment and capital expansion in the past 9 months.
In addition to Amkor's capital increase project, there are also a series of projects in this field. For example, Foxconn Bac Ninh FCPV Factory Project of Foxconn Group, with an investment capital of 383.3 million USD; Goertek Nam Son - Hap Linh Electronic Products, Network Equipment and Multimedia Audio Products Manufacturing Factory Project, with an investment capital of 280 million USD; Victory Giant Vietnam High-Precision Printed Circuit Board (PCB) Project, with an investment capital of 260 million USD...
Recent moves also show that many technology corporations are continuing to be interested in investing in Vietnam. One of the notable pieces of information is the appearance of a series of the world's leading technology corporations, such as NVIDIA, Qualcomm, Intel, AMD, Samsung, Meta... at the Vietnam Innovation Day 2024.
At the event, leaders of the corporations pledged to invest and support Vietnam in developing the fields of semiconductors, artificial intelligence (AI), and innovation. According to NVIDIA Global Senior Vice President Raymond Teh, NVIDIA will help accelerate innovation in Vietnam's industries.
Meanwhile, Meta Group's global external affairs chairman Nick Clegg said that Meta will expand production of its latest mixed virtual reality devices in Vietnam by 2025. This is expected to create about 1,000 jobs in Vietnam.
Previously, Samsung Group also planned to invest another 1.8 billion USD in an LED screen factory in Bac Ninh.
When these plans are realized, a large capital flow will flow into Vietnam. According to a report by the Ministry of Planning and Investment, it is expected that this year, the total registered foreign investment capital in Vietnam will reach the same level as last year, about 39-40 billion USD. Not only the quantity, but also the quality of capital flow will be improved, contributing to "improving the quality" of the economy.
According to information, after a period of operation, Amkor recently exported its first shipment. Meanwhile, Foxconn is also promoting the production of iPad and Macbook at its factory in Bac Giang.
In a recent report to the Ministry of Natural Resources and Environment, Foxconn said that some assembly lines for these two Apple products have been completed. Thus, it is likely that when environmental procedures are completed, the factories will start production.
Currently, Vietnam's goal is still to focus on attracting large-scale, high-tech foreign investment projects in the processing, manufacturing, electronics, semiconductor, hydrogen industries... This is considered one of the new driving forces of the economy.
Source: https://baoquocte.vn/nhieu-du-an-lon-o-cac-linh-vuc-ban-dan-nang-luong-duoc-du-tu-moi-va-mo-rong-von-trong-9-thang-289424.html
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