Vietnam Continues to Impress Investors as Foreign Groups Announce $3.7 Billion Investment Plan

Vietnam is set to become an even bigger magnet for foreign investment, with three international groups announcing plans to invest a combined $3.7 billion in the country. The announcement came at a meeting in Hanoi between the Prime Minister and foreign investors on April 22, which was reported by the Ministry of Planning and Investment.

South Korean group is set to invest $1.6 billion in heavy industry and logistics production, while a German investor plans to inject $1.5 billion into green production using renewable energy. A Japanese investor is also planning to spend $600 million on medical equipment production.

Vietnam is viewed as a rising star in business and investment by many foreign companies, including the European Chamber of Commerce in Vietnam, whose chairman, Gabor Fluit, says that despite the barriers, the European business community in Vietnam is committed to building a prosperous and resilient nation, focusing on sustainable development and green economy.

Takeo Nakajima, Chief Representative of the Japan External Trade Organisation (JETRO) in Hanoi, says that Japanese enterprises are ready to invest in Vietnam. He revealed that JETRO’s survey showed that 47% of respondents would expand their operations in Vietnam over the next 1-2 years, and expressed his wish to see more foreign direct investment in Thanh Hoa, Quang Ninh, and Thai Binh.

Hong Sun, Chairman of the Korea Chamber of Business in Vietnam (Kocham), stated that there are presently about 9,000 South Korean businesses investing in Vietnam, with bilateral trade turnover reaching a record high of $87.7 billion last year. He adds that many Korean businesses investing in Vietnam are considering increasing their capital and making new investments if the business environment remains stable, particularly in high technology, finance, and energy.

To welcome the investment wave, the Minister of Planning and Investment, Nguyen Chi Dung, says that Vietnam needs to prepare the necessary conditions, including “packages” of preferential policies and support for new investment, in the context of the global minimum tax to be applied in 2024. Dung stresses the importance of improving the competitiveness of the investment environment and harmonising the interests of investors.

Vietnam plans to remove bottlenecks in mobilising resources and production and trade. It will step up the disbursement of capital and consolidate trust by placing people and businesses at the centre of development, says Dung. With all these efforts, Vietnam is set to become an even more attractive destination for foreign investors.