Connect with us

Business

Vietnam becomes global production centre thanks to boom of foreign investment

Published

5 months ago

on

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 hinh anh 1Illustrative image (Photo: Dau tu (Investment) newspaper)

Hanoi – 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.

Registered
capital, disbursement boom

Over the past five years, since Vietnam reviewed its 30-year
foreign investment attraction, the FDI flow into the nation has not ceased
increasing.

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

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

HSBC, in its report on attracting foreign investment in
ASEAN in the middle of last year, highlighted a boom in foreign investment into
ASEAN, 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 107.47
billion USD, equaling 38.4% of the total disbursed capital over the past 35
years. About 19-20 billion USD of FDI is
averagely disbursed every year during the reviewed period. A record of FDI disbursement
was set in 2022 with 22.4 billion USD.

The quality of foreign investment into Vietnam has
also improved significantly.

Becoming new production centre

According to Minister of Planning and Investment Nguyen Chi
Dung, more and more multinationals and big investors have continuously
invested in Vietnam.

Vietnam becomes global production centre thanks to boom of foreign investment hinh anh 2More and more multinationals and big investors have continuously invested in Vietnam. – Illustrative image (Photo: VNA)

Economists said that the foreign-invested economic sector
has made an important contribution to the added value of industrial products
thanks to international economic groups’ investment in many large-scale
projects which use high technology, and modern services.

Dozens of research and development (R&D) centres, innovation
hubs, and technology incubators have been established, making it easier for domestic
firms, especially small- and medium-sized enterprises, to connect
with foreign businesses, they noted.

When it comes to success economic stories driven by foreign investment, Vietnam
is a prominent example, HSBC said, highlighting that Vietnam turned
itself into a rising star in global supply chains, gaining substantial global
market 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 an
agreement with the People’s Committee of the northern province of Nam Dinh on developing
a large-scale computer production project in My Thuan Industrial Park, which is
expected to have an investment capital of 120 million USD. This is Quanta’s 9th
factory globally and the first in Vietnam.

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

Foxconn, another partner of Apple, is also planning to set
up a new factory in the central province of Nghe An, to expand its production in
Vietnam after it successfully invested in the northern provinces of Bac Ninh
and Bac Giang.

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

Meanwhile, LG’s investment in Vietnam totaled 7.5 billion
USD 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 continuously
increased their investment capital in Vietnam, including billions-USD commitments.

According to Christopher J Marriott, CEO of Savills
Southeast Asia, Vietnam is considered one of the prominent destinations for high-value
industries with production capacity that meets the expectation of international
investors and technology corporations.

Last year also marked another important turning point when Lego
Group of Denmark officially started construction of a project worth over 1.3
billion USD in Vietnam. Given that Vietnam has committed to cutting emissions to net zero by 2050, Lego’s
first global carbon-neutral project is seen as a start of green investment in
the Southeast Asian nation./.

Source: https://en.vietnamplus.vn/vietnam-becomes-global-production-centre-thanks-to-boom-of-foreign-investment/253115.vnp

Related Topics:

Business

Emerging trends expected to power Vietnam’s tourism boom: study

Published

1 hour ago

on

October 4, 2023

By

Several ongoing trends in the Vietnamese tourism sector have contributed to its strong recovery in the wake of the global COVID-19 pandemic, with the increasing travel demands of Gen Z and families with kids as significant contributors, according to the Visa Global Travel Intentions Study (GTI) 2023.

Vietnam, with its stunning landscapes and diverse cultural heritage sites, has become a popular destination for travelers from around the world.

According to the study, it is vital for both travelers and industry stakeholders to understand new trends in Vietnamese tourism following the pandemic.

In terms of leisure trips, families with kids and ‘Silvers’ – individuals older than 60 – made an average of 2.4 trips over the past 12 months, more than any other market segments, according to the GTI 2023.

Besides ticking visiting landmarks, Vietnamese tourists are now placing a strong emphasis on leisure-focused and experiential journeys.

Relaxation was the main driver of travel, followed by shopping and exploration.

As the country blossoms into a playground for adventure seekers and culture enthusiasts, tourists are opting for personalized experiences that enable them to immerse themselves in local customs, traditions, and cuisine.

Environmental awareness was also a primary catalyst for travel over the past year. As such, Vietnamese travelers demonstrated remarkable interest and action in sustainable travel.

Up to 73 percent of those surveyed said they were either interested or very interested in sustainable travel options, while half had actively looked for these options when planning trips.

With an increasing number of travelers seeking eco-conscious options, the tourism sector is witnessing a shift toward greener travel practices, more support for local communities, and the preservation of natural resources.

Given the country’s growing middle class and their increasing disposable income, Vietnamese travelers are embarking on more domestic and international trips and they seek unforgettable experiences and bonding opportunities.

About one-fifth of the respondents said visiting and connecting with friends or families would be a key motivation for travel in the next year.

Shopping has also become an integral part of the Vietnamese travel experience, with many Vietnamese travelers seeking out unique souvenirs and indulging in retail therapy as part of their journeys.

Sustainable tourism is increasingly preferable for Vietnamese travelers
Sustainable tourism is increasingly preferable for Vietnamese travelers.

Amid the strong development of digital technology, Vietnamese tourists prefer seamless transactions and optimal security measures.

The digital revolution is transforming payment methods, and Vietnamese travelers have embraced the convenience of credit, debit, and pre-paid cards.

Almost all Vietnamese respondents in the GTI 2023 indicated that they intended to use these cashless payment options during their journeys, streamlining transactions and enhancing their overall travel experiences.

Accordingly, 64 percent of the Vietnamese respondents said they brought their digital wallets along with them for their travels.

Thus, the incorporation of cashless payment solutions has become a pivotal pillar in travel, fostering convenience, security, and efficiency for travelers while contributing to the industry’s overall vitality.

“Vietnam’s tourism is entering a new era where the role of digital payments will advance side by side with the industry as customers demand more efficient and secure payment services,” said Dang Tuyet Dung, Visa country manager for Vietnam and Laos.

“Adapting swiftly, hotels, restaurants, and tour operators must cater to evolving traveler needs, supported by the growing use of cashless payment methods for added convenience.”

Amid the global recovery from COVID-19, Vietnam’s tourism sector is rebounding. Domestic tourism has been pivotal, with locals exploring their own country, bolstering local businesses and jobs.

Vietnam welcomed over 7.8 million foreign visitors between January and August this year, meeting 98 percent of its full-year target of eight million international tourist arrivals.

The tourism sector also served 86 million domestic tourist arrivals in the eight-month period, according to the General Statistics Office.

Like us on Facebook or  follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230928/emerging-trends-expected-to-power-vietnams-tourism-boom-study/75848.html

Continue Reading

Business

Zhejiang Trade Exhibition opens in Hanoi

Published

5 hours ago

on

October 4, 2023

By

The 2023 Zhejiang International Trade Exhibition and the 11th Zhejiang Export Fair, the largest and oldest expo independently held by China’s Zhejiang authority in ASEAN, opened at the Hanoi International Convention Centre on September 28.

Zhejiang Trade Exhibition opens in Hanoi hinh anh 1At the opening ceremony of the exhibition (Photo: VNA)

Hanoi – The 2023 Zhejiang International Trade Exhibition
and the 11th Zhejiang Export Fair, the largest and oldest expo independently
held by China’s Zhejiang authority in ASEAN, opened at the Hanoi International
Convention Centre on September 28.

The 4,000sq.m expo features 120 booths, displaying
products in hardware and machinery, textiles and inputs, interior and exterior
furniture, electronics and household appliances.

The three-day event is hosted by the Department of Commerce of Zhejiang province, and co-organised by Zhejiang Yuanda International Exhibition Co Ltd and
the Vietnam National Trade Fair and Advertising Company (VINEXAD).

Deputy Director of the Asia-Africa Market Development under the Ministry of
Industry and Trade  (MoIT) To Ngoc Son
said this is the 11th year the two sides have coordinated to
organise the trade promotion activity which marks the full recovery of economic
and trade exchanges between the two nations after three years of hiatus due to COVID-19.

Zhejiang Trade Exhibition opens in Hanoi hinh anh 2Deputy Director of the Asia-Africa Market Development To Ngoc Son speaks at the opening ceremony. (Photo: VNA)

The event is expected to create more cooperation opportunities for businesses
from both nations in the context that the global economy is facing a gloomy outlook,
he said, adding Zhejiang province – an important gateway in China’s eastern
region has an important role to play in the Vietnam – China trade, with Vietnam
– Zhejiang trade revenue accounting for 10% of the total trade between
the two nations in 2022.

Launched in 2011, the expo has been a platform not only for product exhibition
and promotion but also for Vietnam and China to strengthen economic and cultural
exchanges and multifaceted cooperation between their localities.

Last year, Zhejiang’s exports
to Vietnam reached 14.5 billion USD, an increase of 17.99%, while imports were 6
billion USD, up 14.21% over the same period last year.

The exhibition will run until September 30./.

Source: https://en.vietnamplus.vn/zhejiang-trade-exhibition-opens-in-hanoi/268734.vnp

Continue Reading

Business

Vietnam’s nine-month economic growth reported at 4.24% YoY

The country’s GDP grew by 4.24% in the first 9 months, exceeding the growth rate of 2.19% and 1.57% in 2020 and 2021, according to data from the General Statistics Office.

Published

6 hours ago

on

October 4, 2023

By

The results suggest that the economy is experiencing a notable upswing, potentially due to favorable economic politics or external factors.

The gross domestic product in the July-September quarter was estimated to increase by 5.33% from a year earlier, faster than the growth rate of 4.05% in the second quarter.

The recent growth registered in the country’s economy is a positive sign, indicating a continued recovery from the pandemic-induced downturn. Despite a slight decrease in growth compared to the same period last year, the economy remains stable and may continue to grow in the coming months.

In September, the consumer price index increased by 3.66% compared to the same period last year. The average value recorded in the third quarter of 2023 grew by 2.89% compared to the third quarter of 2022.

In the reviewed period, the total import and export turnover of goods reached $497.66 billion, down 11% over the same period last year. Of which export value hit $259.67 billion, down by 8.2%, while import value hit $237.99 billion, down 13.8%.

With regard to trade balance, the country posted a trade surplus of $2.29 billion in September and $21.68 billion during the nine months.

Industrial production in September increased by 5.1% year on year, up 0.1% from the previous month, while the January-September period showed an increase of 0.3% from the previous year.

In addition, the total retail sales and consumer service revenue in the first 9 months of 2023 is estimated to reach VND 4,567.8 trillion, an increase of 9.7% year on year (the same period in 2022 increased 20.9%). 

Source: https://e.nhipcaudautu.vn/economy/vietnams-nine-month-economic-growth-reported-at-424-yoy-3355298/

Continue Reading

Trending