Foreign direct investment (FDI) attraction in Vietnam is expected to peak up steam in the coming months following several foreign investors’s decisions to inject huge amounts of capital into a number of major projects across the country, according to industry insiders.
Notably, the Republic of Korea (RoK)’s SK Group moved to pour US$340 million into acquiring a 4.9% stake in The CrownX, which owns the WinMart and WinMart+ store chains, further affirming its keen interest and major ambitions in Vietnam.
De Heus Group of the Netherlands also acquired Masan’s entire animal feed production segment as a way of expanding its factory chain in the country to 22, officially becoming the country's leading animal feed manufacturer with total investment reaching up to VND4 trillion.
Explaining the reasons, Gabor Fluit, general director of De Heus Asia, said Vietnam is a potentially lucrative market in Southeast Asia boasting a high economic growth rate among the group of developing countries. In addition, it has signed numerous bilateral and multilateral free trade agreements (FTAs), with 14 of them currently in force.
Among other investors, Kurz Group of Germany recently decided to invest US$40 million in constructing a coating and thin film technology factory in Becamex VSIP Binh Dinh, while the RoK’s Amkor Technology, Inc planned to funnel US$1.6 billion into a semiconductor manufacturing plant in Bac Ninh.
Authorities in Quang Tri have agreed to allow the consortium of investors SSF Investment Co., Ltd., Sunshine Homes Development JSC (SSH) and Truth Assets Management from Singapore to conduct a survey for exploring investment in three projects in the Cua Viet maritime area.
Elsewhere, Denmark’s Orsted Group proposed investing in an offshore wind power project in Hai Phong, with the site set to feature a total capacity of 3,900 MW and investment capital reaching between US$11.9 billion and US$ 13.6 billion.
Statistics compiled by the Foreign Investment Agency indicate that newly and additionally registered FDI capital in Vietnam over the past 10 months increased by 15.8% annually, which reflects foreign investors’ trust in the country’s economic recovery from COVID-19 in the short term.
Prime Minister Pham Minh Chinh, during his speech at the National Assembly’s year-end session, affirmed that despite the impact of the COVID-19 pandemic foreign investors have placed trust in Vietnam’s improved business and investment climate. He said besides transparent preferential policies, political stability and a young, abundant labour force are Vietnam’s advantages in attracting foreign investment.
Recently the UK market research company IHS Markit expressed its optimism about Vietnamese economic recovery thanks to a number of factors, including its low labour costs and and an abundant and qualified workforce compared to regional competitors.
Experts said Vietnam remains an attractive investment destination in the future, as several foreign firms are moving their production lines to nations in Asia, and a number of multinational companies are seeking to diversify their production supply chains.
VOV
