A large number of foreign corporations have planned to expand their presence in Viet Nam which would spur FDI inflow in the country.
From “global production hub”
LG Innotek, a subsidiary company of LG Corporation, announced to invest a US$ 200 million camera production project in Dinh Vu – Cat Hai economic zone in the northern province of Hai Phong. The project was expected to get permission soon.
This would be the third FDI project of the Korean group in Viet Nam following a US$ 1 billion household electric project and another US$ 1.5 billion OLED display factor project which got investment license last month.
The three projects located in Hai Phong city, showing that the Korean group is setting a firm foothold in Viet Nam.
Hence, after Samsung, LG corporation is grounding their global production chain in Viet Nam, bringing out more Korean SMEs to expand their presence in Viet Nam.
In addition, a large number of Japanese businesses also poured capital to the Southeast Asian country.
Nikkei was quoted as saying that Daikin Industries, the Japanese biggest air-condition producer was crafting a plan to open a new production workshop in Viet Nam with a projected capital of US$ 93.6 million. The factory would begin construction in 2018 and churn out a half of million air conditioners each year.
As such, the FDI inflow was expected to boom in Viet Nam.
Earlier, the Foreign Investment Agency reported that the nation attracted US$ 12.94 billion of FDI in the first seven months, witnessing a big surge in comparison with the same period last year. Of which, nearly US$8.7 billion was newly-registered capital. The rest of US$ 4.25 billion was additional capital. Meanwhile, US$ 8.55 billion of FDI was disbursed, representing a year-on-year growth of 15.5%.
To special industrial zones
Foreign investors from Japan, the RoK, and Taiwan proposed the establishment of special industrial zones.
Noticeably, the Long Duc industrial zone came into operation since 2013 in the model of a joint venture among three Japanese groups and Donafood corporation of Viet Nam. After two years, 40 Japan-invested projects worth US$ 900 million covered over 60% of area in the zone.
In addition, the model of a special industrial zone and complex for Japanese enterprises specializing in auxiliary industries also put in place in other localities, including Viet Nam-Japan industrial zone in HCMC or Da Bac industrial complex in Ba Ria-Vung Tau province.
The Central Institute for Economic Management (CIEM) on July 26 reported that the FDI sector earned US$ 68.9 billion of export turnover and made remarkable contributions to the Vietnamese economy; stimulating business competitiveness; generating jobs; improving technological standards and management competence.
Moreover, FDI enterprises have enabled the creation of satellite investors, thus developing industries; expanding Viet Nam’s participation into the global production chain and facilitating Vietnamese enterprises’ access to international market.
Source: VGP – Huong Giang
Key words: Big foreign groups, look to, Vietnamese market.
