Business

Vietnam becomes global production centre thanks to boom of foreign investment

Despite impacts caused by the COVID-19 pandemic, foreign direct investment (FDI) is still being poured into Vietnam, contributing importantly to turning the country into a new production hub of the world.
Vietnam becomes global production centre thanks to boom of foreign investment ảnh 1Illustrative image (Photo: Dau tu (Investment) newspaper)
Hanoi (VNA) - Despite impacts caused by the COVID-19pandemic, foreign direct investment (FDI) is still being poured intoVietnam, contributing importantly to turning the country into a new productionhub of the world.

Registeredcapital, disbursement boom

Over the past five years, since Vietnam reviewed its 30-yearforeign investment attraction, the FDI flow into the nation has not ceasedincreasing.

Statistics from the Ministry of Planning and Investment (MPI)show that from January 2018 to April 20, 2023, the registered FDI in Vietnamtotaled 180 billion USD, equaling 40.3% of the accumulated investment capital overthe last 35 years.

As of April 2023, Vietnam had attracted 37,065 foreign-investedprojects with a total registered capital of 445.87 billion USD, with 279.8billion USD of the total being disbursed.

HSBC, in its report on attracting foreign investment inASEAN in the middle of last year, highlighted a boom in foreign investment intoASEAN, saying that Vietnam and ASEAN are the two markets receiving the most of foreign investment capital.

Over the last five years, the total FDI disbursement hit 107.47billion USD, equaling 38.4% of the total disbursed capital over the past 35years. About 19-20 billion USD of FDI isaveragely disbursed every year during the reviewed period. A record of FDI disbursementwas set in 2022 with 22.4 billion USD.

The quality of foreign investment into Vietnam hasalso improved significantly.

Becoming new production centre

According to Minister of Planning and Investment Nguyen ChiDung, more and more multinationals and big investors have continuouslyinvested in Vietnam.

Vietnam becomes global production centre thanks to boom of foreign investment ảnh 2More and more multinationals and big investors have continuously invested in Vietnam. - Illustrative image (Photo: VNA)
Economists said that the foreign-invested economic sectorhas made an important contribution to the added value of industrial productsthanks to international economic groups' investment in many large-scaleprojects which use high technology, and modern services.

Dozens of research and development (R&D) centres, innovationhubs, and technology incubators have been established, making it easier for domesticfirms, especially small- and medium-sized enterprises, to connectwith foreign businesses, they noted.

When it comes to success economic stories driven by foreign investment, Vietnamis a prominent example, HSBC said, highlighting that Vietnam turneditself into a rising star in global supply chains, gaining substantial globalmarket share in such sectors as textiles, footwear and consumer electronics.

The bank also mentioned large-scale investments of Samsung,Pegatron, Foxconn, Luxshare, and Goertek, stressing that Vietnam is transforming itself into the world's technology factory.

Not long ago, Quanta Computer of Taiwan (China) signed anagreement with the People's Committee of the northern province of Nam Dinh on developinga large-scale computer production project in My Thuan Industrial Park, which isexpected to have an investment capital of 120 million USD. This is Quanta's 9thfactory globally and the first in Vietnam.

Quanta is a MacBook manufacturing partner of Apple, so theappearance of this corporation in Vietnam means that Apple is continuing to shiftits production to the Southeast Asian nation.

Foxconn, another partner of Apple, is also planning to setup a new factory in the central province of Nghe An, to expand its production inVietnam after it successfully invested in the northern provinces of Bac Ninhand Bac Giang.

Samsung is a good example of the foreign investment scale inVietnam. So far, the group’s totalinvestment in the country has hit 20 billion USD.

Meanwhile, LG’s investment in Vietnam totaled 7.5 billionUSD in the last five years. The group has continuously added capital to its factories- LG Display, LG Innotek, and LG Electronics.

Foxconn, Pegatron, Winston, Goertek, and Amkor have continuouslyincreased their investment capital in Vietnam, including billions-USD commitments.

According to Christopher J Marriott, CEO of SavillsSoutheast Asia, Vietnam is considered one of the prominent destinations for high-valueindustries with production capacity that meets the expectation of internationalinvestors and technology corporations.

Last year also marked another important turning point when LegoGroup of Denmark officially started construction of a project worth over 1.3billion USD in Vietnam. Given that Vietnam has committed to cutting emissions to net zero by 2050, Lego'sfirst global carbon-neutral project is seen as a start of green investment inthe Southeast Asian nation./.
VNA
#COVID-19 pandemic #FDI #Vietnam #foreign-invested projects #FDI disbursement #boom #production centre #production project #Vietnamplus #Vietnamplus #Vietnam news #Vietnam News Agency
Follow VietnamPlus

Related News

Hanoi attracts over 1.7 billion USD in FDI in four months

Hanoi attracts over 1.7 billion USD in FDI in four months

The capital city of Hanoi attracted over 1.7 billion USD of foreign direct investment (FDI) in the first four months of this year with 103 new projects worth 35.2 million USD and 50 projects permitted to increase investment capital by 91.8 million USD.
Southern economic locomotive selective in FDI attraction

Southern economic locomotive selective in FDI attraction

Provinces and centrally-run cities in the Southern Key Economic Zone are now more selective in attracting foreign direct investment (FDI) by giving priority to high-tech, environmentally-friendly and less labour-intensive projects.

See more

Fuel prices surge from 3pm on June 19 (Photo: VNA)

Fuel prices surge from 3pm on June 19

The price of E5 RON92 petrol is now capped at 20,631 VND (0.79 USD) per litre, up 1,169 VND from the previous adjustment, while RON95-III costs no more than 21,244 VND per litre, up 1,277 VND.

Vietnamese Ambassador to Germany Vu Quang Minh (right) thanks Selgros Lichtenberg CEO Marco Berger for creating conditions for Vietnamese agricultural products to reach German customers (Photo: VNA)

Vietnamese Goods Day promotes Bac Giang lychees in Germany

While German consumers are familiar with Vietnamese products such as coffee, seafood, tea, and spices, many other quality items remain relatively unknown in the market. The Selgros event not only helped introduce Bac Giang lychee to German consumers but also provided them with the opportunity to experience other Vietnamese agricultural products.

An article published by Cuba’s Inter Press Service (IPS) spotlights the promising results of a unique rice cooperation model with Vietnam, as Cuba ramps up efforts to improve national food security. (Photo: Screenshot)

Vietnam–Cuba rice partnership sets new model for sustainable food security: media

The article by Cuba’s Inter Press Service detailed how Vietnamese private enterprise Agri VMA leased 1,000 ha of land in Los Palacios district, Cuba’s westernmost province of Pinar del Río, for rice cultivation over a three-year period. The project’s first harvest in 2025 recorded an impressive yield of 7.2 tonnes per hectare, far exceeding the local average of 1.6 tonnes.

Algerian delegates explore Vietnamese products showcased at the event (Photo: VNA)

Vietnam seeks to expand trade ties with Algeria

During the visit, office representatives held a working session with the Tipaza Chamber of Commerce and Industry and met with several prominent local businesses operating in key sectors including industry, agriculture, fisheries, food processing, chemicals, pharmaceuticals and plastics.

A H&M store (Photo: Reuters)

Vietnamese firms eye new opportunities with Nordic partners

A Nordic delegation to Vietnam International Sourcing 2025 in September will feature leading names in retail, consumer goods, logistics, and sustainable manufacturing, including global fashion giant H&M, offering fresh prospects for partnerships in fashion, textiles, and green supply chains.

The Lao Bao (Vietnam) – Densavan (Laos) international border gate (Photo: VNA)

'Single-Stop' procedure at Lao Bao–Densavan border gate halted

Effective from the date of signing on June 18, the decision halts procedures outlined in the 2005 Memorandum of Understanding (MoU) between the governments of Vietnam and Laos on the initial implementation of the Greater Mekong Subregion (GMS) Cross-Border Transport Facilitation Agreement at the Lao Bao–Densavan border gate.

Wind energy is expected to be a source of clean power. (Photo: VNA)

Germany invests 50 million USD in renewable energy workforce training in Vietnam

The renewable energy workforce training and development centre, invested by Germany's GEO Group, is expected to be a cornerstone in shaping Binh Dinh as a renewable energy and innovation hub in central Vietnam, meeting the growing demand for skilled technical personnel in offshore wind, solar farms, and green hydrogen projects.

ITM Semiconductor Vietnam Co., Ltd. in VSIP Industrial Park, Tu Son, Bac Ninh has always been given favorable conditions by the locality for production and business. (Photo: VNA)

Bac Ninh exerts efforts to ensure businesses thrive

To further strengthen private-sector innovation, Bac Ninh plans to accelerate administrative reforms, build a digital, service-oriented government, and develop an integrated innovation ecosystem that connects businesses with domestic and international institutions, universities, and experts.

Vietnamese Ambassador to Sweden (second, from left) Tran Van Tuan meets with representatives of H&M. (Photo: moit.gov.vn)

H&M, Nordic businesses seek suppliers in Vietnam

The participation of H&M, one of the world's largest fashion corporations, in Vietnam International Sourcing 2025 in Ho Chi Minh City in early September is considered a special highlight, opening up many cooperation opportunities for Vietnamese businesses in the fashion, textiles and sustainable supply chains.