The fear that Viet Nam has not taken advantage of the opportunities from the shift in global investment flows is increasingly being relieved, as more and more large corporations want to invest and expand their investment, to turn Viet Nam into a base. its production.
Will the record of 38.85 billion USD repeat?
It’s mid-December 2022, which means there are only a few days left to “close” the situation of attracting foreign investment in 2022. Therefore, the question now is how much foreign investment capital Viet Nam can attract. out this year? Will last year’s record of 38.85 billion USD be repeated?
The answer doesn’t seem simple. In fact, in 11 months, according to data from the Ministry of Planning and Investment, there have been more than 25.1 billion USD of foreign investment capital registered in Viet Nam (including newly registered capital, adjusted capital and capital). investment through capital contribution and share purchase), equal to 95% compared to the same period in 2021.
Although the Ministry of Planning and Investment recently reported to the Government, the newly registered capital has not fully recovered after the disruption of anti-epidemic measures in 2021 and global geo-political fluctuations, as well as gradually improving, adjusted capital continues to increase by 18.9%. However, the gap between 25.1 billion USD and 38.85 billion USD is not small and not easy to “flatten” so that the miracle of the past year will repeat this year.
The difficulty is understandable. Because Mr. Do Nhat Hoang, Director of the Foreign Investment Department (Ministry of Planning and Investment) always emphasizes the problems of the Covid-19 epidemic, the unpredictable fluctuations of global geopolitics, causing Global investment flows to slow down. Data from FDI Markets shows that, in the first half of 2022, new projects globally decreased by 3.8% over the same period.
But the situation in Viet Nam is improving. Although it has not officially “closed the books”, certainly, foreign investment capital registered in the last month of the year will be quite positive. The most visible evidence is at the Conference to deploy the Government’s Action Program to implement Resolution 24-NQ/TW of the Politburo on the development of the Southeast Region and Regional Investment Promotion, held at the end of the year. In November 2022, a series of investment commitments worth billions of dollars were awarded. Not least of which is the investment registration certificate.
For example, the investment project of polypropylene (PP) factory and liquefied petroleum gas (LPG) storage in Ba Ria – Vung Tau, investment capital is 250 million USD; Jewelry and jewelry manufacturing project, total investment capital of 163 million USD in Binh Duong, of Pandora Production Holding A/S; Polyster trough manufacturing factory project in Tay Ninh, invested 1 billion USD by Billion Industrial Vietnam Co., Ltd, etc.
Adding billion USD projects, registered investment capital in Viet Nam will be significantly improved. Although it may be difficult to reach last year’s record of 38.85 billion USD, Covid-19 cannot “make it difficult” for Viet Nam.
Although it has not officially “closed the books”, with the commitments of partners and large corporations, the amount of foreign investment capital registered in Vietnam in the last month of the year will certainly be quite positive. Photo: Duc Thanh . Graphics: Dan Nguyen
“Ahead is the sky”
However, the story seems to be moving in the other direction, as recent moves show that many large foreign corporations will invest and continue to invest and expand in Vietnam. During recent trips to Europe by Prime Minister Pham Minh Chinh and to Korea by President Nguyen Xuan Phuc, many commitments were made. For example, CMA-CGM Group of Belgium, wants to Expand Gemalink Port Project Phase II at Cai Mep and Lach Huyen Port (Hai Phong).
Not only CMA-CGM, a series of other big names are also planning to invest in Vietnam. De Heus is an example. Having currently invested 1 billion USD in Vietnam, De Heus continues to plan to cooperate with domestic partners to develop the nutritional and animal feed value chain in Vietnam.
Corporations such as Nedspice, Harvest Waste, Heineken, Climate Fund Managers, B-Medical Systems, SMS/Paul Wurth… are similar. Speaking at the meeting with the leaders of these corporations, Prime Minister Pham Minh Chinh said that the Vietnamese Government is committed to always creating favorable conditions and actively supporting foreign businesses to trust and long-term business investment in Vietnam, contributing to promoting economic cooperation, as well as socio-economic development of the two sides in an effective, mutually beneficial direction.
Meanwhile, during President Nguyen Xuan Phuc’s trip to Korea, 24 cooperation documents were signed and 15 billion USD in investment proposals were made. It is easy to understand the billion USD commitment, because Korea is always the largest foreign investor in Vietnam.
At a meeting with the President, Vice Chairman and General Director of Samsung Electronics Han Jong-hee said that the Group plans to increase investment capital in Vietnam to 20 billion USD. Meanwhile, according to Hyosung Group Chairman Cho Hyun Joon, after investing 3.5 billion USD in Vietnam, Hyosung will increase its total investment in Vietnam to 5 billion USD in the near future. , instead of 2 billion USD as initially expected.
Another big name, LG, will invest an additional 4 billion USD in Vietnam in the future, after investing more than 5 billion USD in this market. “LG wants to turn Vietnam into a center for producing cameras for phones in the future,” said Mr. Kwon Bong-seok, Vice President and CEO of LG Group.
Similar commitments have also been made by CJ, Hyundai, Daewoo E&C, Lotte, etc. Even the assertions about making Vietnam the group’s global production “base” have been confirmed.
In fact, not only during foreign trips of the country’s leaders, but also at the Conference to deploy the Government’s Action Program to implement Resolution 24-NQ/TW of the Politburo on development In the Southeast region, many billion-dollar commitments have also been made by large corporations.
For example, The Siam Cement Public Co.Ltd wants to expand phase II, Southern Petrochemical Complex, with a total investment of 5.5 billion USD; or Earth Vision wants to invest in an Industrial Wood Production Project for the assembly and construction industry using CLT technology and recreational boatbuilding, with an investment capital of 1.3 billion USD…
Once these plans are realized, “sky’s the horizon.” 2023 and the coming years promise that foreign capital will continue to “flow strongly” into Vietnam.
Source: Investment Newspaper
