Automobile components are made at foreign-invested Pim Vina Ltd Co, Ltd in My Trung industrial park, My Loc district, Nam Dinh province. (Photo: VNA)
The shift in global production chains, especially in core technology, chip technology, and future technology industries, is opening up many opportunities for Viet Nam to attract high-tech FDI capital.
In the first quarter of 2024, Viet Nam registered 6.17 billion USD of FDI capital poured in 17 out of 21 economic sectors, an increase of 13.4% over the same period.
During a working session with Viet Nam's Minister of Planning and Investment Nguyen Chi Dung in China late last month, Chinese Minister of Commerce Wang Wentao said that some Chinese production chains in textiles, household appliances and wooden furniture have moved to Viet Nam. Chinese investment in Viet Nam is increasing rapidly, particularly in the electronics sector. Many Chinese supporting businesses that supply products to major global electronics companies like Samsung and Apple have also set up factories in Viet Nam after surveying other competing countries.
As part of the shifting trend, Taiwanese Quanta Computer Inc Group - one of the largest computer manufacturers in the world, specialising in assembling MacBooks for Apple - decided to build its ninth computer factory in My Thuan industrial park in Viet Nam's northern province of Nam Dinh with a registered capital of 120 million USD and a capacity of 4.5 million products per year in Phase 1.
Tran Anh Dung, Vice Chairman of the Nam Dinh provincial People's Council said that to attract investors, the province has made preparations in all aspects from land funds for infrastructure development in industrial parks and economic zones, human resources, energy infrastructure and supporting industries to procedures. As a result, investment registration procedures for the project were completed within just 24 hours after receiving the dossier and only 15 days after the signing of the project development agreement. This shows the importance of a supportive eco-system in attracting investment.
Do Nhat Hoang, Director of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment said that a new wave of FDI is coming to Viet Nam. In the new southern policy of the Republic of Korea (RoK), Viet Nam is placed at the top position in attracting investment. Many MoUs between businesses of the two countries have been implemented since the official visit of the RoK President to Viet Nam in June 2023.
Hoang affirmed that in this period, Viet Nam looks for investment in high technology, and new technology and says “No” to projects with outdated technology, environmental risks or labour-intensive ones.
The fourth FDI wave to Viet Nam is expected to bring US investment capital flows as many US business delegations are surveying the semiconductor chip ecosystem in Viet Nam. Many European business delegations are also surveying opportunities in Viet Nam with special attention to the country’s green growth strategy and its commitment to net-zero emission reduction by 2050.
Viet Nam has been concentrating on preparing clean land funds through infrastructure development in industrial parks, training high-quality human resources, developing new electricity sources, and logistic services and improving business climate, Hoang said.
He added that in the past, it was difficult for FDI investors to meet provincial leaders and officials, but now top provincial leaders are willing to meet, discuss and support investors to solve their business problems.
To attract high-tech projects, economists recommended that the Government improve competitiveness by building an appropriate investment incentive policy framework, especially when Viet Nam started applying the global minimum tax regime on January 1, 2024.
In particular, Viet Nam needs to have policies to support domestic enterprises so that they can participate deeper in the supply and production chains of FDI enterprises, especially in the high technology segment./.
Source: VNA
