FDI results in localities above expectations

Northern provinces like Vinh Phuc continue to be a strong destination for electronics investors, Photo: Le Toan

In the first eight months, the northern province of Bac Ninh attracted over $3.47 billion in foreign direct investment (FDI), placing it at the forefront of capital attraction in the country. This influx of capital represents a 294 per cent increase compared to the same period last year.

The surge in FDI can be attributed to the interest of major global corporations, including Goertek, Amkor, Foxconn, Suntory PepsiCo, and Victory Giant Technology, all of which are looking to expand operations in Bac Ninh.

Amkor Technology Singapore is one such group, which in July injected an additional $1 billion into its semiconductor plant at Yen Phong II-C Industrial Park (IP). This brings Amkor’s total backing to $1.6 billion, exceeding the company’s initial decade-long plan.

Looking ahead, the province has outlined ambitious goals. A project list, approved in August, includes 167 developments covering over 11,600 hectares, focusing on agriculture, commerce, services, residential and urban development, social housing, IP infrastructure, and social amenities.

Meanwhile, Dong Nai Industrial Zones Management Authority reported a sharp rise in FDI in the southern province of Dong Nai during the same period.

From January to August, the province’s IPs attracted $1.31 billion in total capital, exceeding the annual target by 62.5 per cent. These projects primarily focus on semiconductors, chips, electronics, and mechanical processing.

Other provinces also saw significant increases in FDI, in particular Quang Ninh (230 per cent), Ba Ria-Vung Tau (526 per cent), Thai Nguyen (288 per cent), and Thai Binh (216 per cent).

In Ba Ria-Vung Tau, representatives of Phu My 3 IP highlighted that in the first half of the year alone, the park attracted six foreign investors, with a total of over $500 million. Two of these have already been licensed, with four more in the process of completing licensing procedures.

Haiphong and Vinh Phuc have also become focal points for FDI. Haiphong ranked sixth in such attraction over the year so far, securing $1.46 billion, bringing the city closer to its target of attracting $2 billion for the entire year.

Le Trung Kien, head of Haiphong Economic Zones Management Authority, said, “The city prioritises large investors with strong capacity, environmentally friendly technologies, and commitments to technology transfer. We are focusing on funding in seaports, logistics, high-tech industries, and processing and manufacturing.”

In northern Vietnam, Vinh Phuc province continues to be a preferred destination for electronics manufacturers. In the first half of the year, foreign investors registered $436 million in new projects, exceeding the annual target by 9 per cent. Of this, around $210 million went into electronics manufacturing.

The province views the electronic components sector as a key driver of local economic growth, with production in this industry rising 15.3 per cent on-year in the first seven months of 2024.

Vinh Phuc People’s Committee Chairman Tran Duy Dong emphasised the province’s strategic location and better conditions for investors. Situated in the Red River Delta and close to Hanoi, Vinh Phuc acts as a bridge between northwestern provinces and the capital, making it pivotal in both regional and national economic development.

“Our investment strategy prioritises industrial projects, particularly in high-tech ones such as mechanical engineering, electrical equipment, electronics, semiconductors, and automotive manufacturing,” Dong stated at a meeting with the Korean Chamber of Commerce in Vietnam in August.

The province is committed to supporting foreign investors through four key measures, Dong added. Firstly, provincial departments and agencies will create optimal conditions for businesses. Secondly, Vinh Phuc will collaborate with Vietnam Electricity to ensure a stable electricity supply for production. Thirdly, the province is investing in high-quality human resources to meet business needs. Finally, Vinh Phuc is dedicated to attracting new investors and supporting those already operating within the province.

“We believe that alongside attracting new funding, it’s crucial to nurture existing investors. A favourable business environment encourages them to promote Vinh Phuc to others,” Dong added.

Vietnam reports $20.5 billion in FDI in first eight months More than $20.52 billion in foreign direct investment (FDI) has been reported in Vietnam up to the end of August, an on-year increase of 7 per cent, according to the Foreign Investment Agency.

Vietnam sustaining growth amidst shifting FDI trends Trade ties between the US and emerging market economies in the Asia-Pacific region are shifting from efforts to diversify supply chains out of China through “friendshoring” or “nearshoring”. Against this backdrop, Vietnam is among the Asia-Pacific markets relatively well-placed to gain from such shifts.

Haiphong: hugely enticing for major funds from South Korean investors Haiphong serves as a magnet to draw in investment influx from South Korean investors. Ko Tae Yeon, general director of Heesung Electronics Vietnam, explains how the northern port city can capitalise on its advantages in infrastructure, logistics, and more.