Processing and manufacturing industry attracts foreign investors

VCN - After a long time lagging behind, Vietnam's processing and manufacturing industry has been making strong breakthroughs, and now leads in attracting foreign investment (FDI).
Việt Nam to improve institutions to attract foreign investment Việt Nam to improve institutions to attract foreign investment
Many foreign investors expand electronic industry projects in Vietnam Many foreign investors expand electronic industry projects in Vietnam
Foreign investors maintain optimistic outlook for Vietnam’s growth Foreign investors maintain optimistic outlook for Vietnam’s growth
Manufacturing activities at Samsung Vietnam. Photo: Tran Ngoc
Manufacturing activities at Samsung Vietnam. Photo: Tran Ngoc

Positive growth

According to the Ministry of Planning and Investment, as of May 20, the total new investment from FDI investors reached over US$11.71 billion, equal to an increase of 83.7% year-on-year. Of which, newly registered capital decreased by 53.4%, but adjusted capital and capital contribution to buy shares rose sharply by 45.4 % and 51.6% respectively.

Foreign investors have invested in 18 industries out of a total of 21 national economic industries. Of which, the processing and manufacturing industry leads the way with a total investment of over US$6.8 billion, accounting for 58.2% of the total registered investment capital. At the same time, the manufacturing and processing industry is also one of the industries attracting the most new projects in the first five months of 2022, accounting for 25.6% of the total number of projects.

The processing and manufacturing industry in the first five months of 2022 recorded US$131.39 billion in export, up 16% year-on-year and accounting for 85.9% of the total export turnover. Many manufacturing projects of electronic and high-tech products have expanded their capital such as; Samsung Electro-mechanics Vietnam (Thai Nguyen) project rose by US$920 million; a project of Fujifilm Business Innovation Vietnam Co., Ltd. (HCMC) rose US$494.2 million; projects of manufacturing of electronics, network equipment and multimedia audio products in Bac Ninh rose by nearly US$306 million, in Nghe An US$260 million and in Hai Phong US$127 million; and Electronic component factory project (Phu Tho) rose by US$163 million.

Mr. Kim Byunggi, General Director of Hansol Electronics Vietnam Hochiminhcity Co., Ltd. Said that after several years of successful investment in Amata Industrial Park in Bien Hoa city, the company has increased by US$100 million to implement a new project in Ho Nai Industrial Park phase 2. The new factory will manufacture, process and assemble liquid crystal display modules and electronic circuit boards with a scale of about 10.8 million products per year. The company's products are mainly supplied to Samsung Group and exported.

Many other branches of the manufacturing industry have also expanded their production and exports. Despite the Covid-19 pandemic, export turnover still maintained a high growth rate, helping the industry develop stably. At the same time, the export market is being expanded to many other countries and territories to reduce risks for businesses when depending too much on a few markets.

It is necessary to provide more support

FDI enterprises want to find domestic sources of raw materials and auxiliary materials to meet the requirements of the localization rate when investing in Vietnam, to enjoy tariff preferences upon exports. In addition, raw materials in the country will help businesses proactively produce, reduce costs and risks of transportation time. The above factors open up more opportunities to promote the development of domestic enterprises in the manufacturing industry.

Speaking to a reporter from Customs News, Mr. Phan Huu Thang, former director of the Foreign Investment Department (Ministry of Planning and Investment), said the report on foreign investment in Vietnam on May 12, 2022 states that many Japanese and Korean businesses want to cooperate with suppliers of spare parts, components and semi-finished products in Vietnam. Because Vietnam's supporting industry is still weak, it is difficult to find domestic suppliers and large-scale foreign investors are forced to entice supporting enterprises and partners from their countries to Vietnam.

Việt Nam need to have mechanisms and policies in place to raise the level of Vietnam's small and medium enterprises in terms of technology level and management skills to meet requirements of FDI enterprises, creating opportunities for domestic enterprises to participate in the global supply chain. Accordingly, the State must play the role of a "midwife" for domestic enterprises by formulating strategies for the development of a number of priority areas of the supporting industry to focus investment, avoid spreading and ineffective investment; building a digital portal, building an online database connecting domestic enterprises with global end product manufacturers; organizing international industry exhibitions in Vietnam to connect suppliers with demanders; issuing specific mechanisms, policies and programs to encourage FDI enterprises to voluntarily transfer technology and management skills and support Vietnamese enterprises to join their supply chains.

At the same time, domestic enterprises must actively approach new technologies and search and select products suitable to their capabilities, improve their management skills to meet the requirements on cooperation with FDI enterprises.

In Decision 493/QD-TTg the Prime Minister approved the Import-Export Strategy to 2030, and the Government aims to increase the export rate of the processing and manufacturing industry to 88% of the total exports by 2025 and 90% by 2030.

Diu-Thao/ Huyen Trang

Related News

Focus on sustainable development, greening the textile industry

Focus on sustainable development, greening the textile industry

VCN - Vietnam’s textile and garment industry has made great strides in strengthening its supply chain, diversifying its markets, and developing sustainably. Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, shared the industry’s strategy to adapt to the changing global context, as well as the export value target for 2024 that the industry is aiming for.
Diversify and innovate securities products to attract foreign investors

Diversify and innovate securities products to attract foreign investors

VCN - Mr. Kojima Kazunobu, Chief Advisor of the Japan International Cooperation Agency (JICA), said that Vietnam needs to make more efforts in developing the stock market in both quality and quantity to become a potential market, attractive to foreign investors.
Breakthrough policy to attract new generation FDI

Breakthrough policy to attract new generation FDI

VCN - Currently, many countries are competing to attract investment from leading chip and semiconductor enterprises. This requires Vietnam to have breakthrough policies to attract foreign direct investment (FDI) in these new fields.
Unique opportunity for businesses in the supporting industry

Unique opportunity for businesses in the supporting industry

VCN - Vietnam's supporting industry is exposed to a unique opportunity to participate in the supply chain of emerging high-value industries such as the semiconductor industry, aerospace, etc. Customs Magazine had an interview with Ms. Le Nguyen Duy Oanh, Deputy Director of the Center for Supporting Industry Development, Ho Chi Minh City Department of Industry and Trade, about this issue.

Latest News

Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.

More News

Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Lao Cai Customs sees a triple-digit surge in export-import turnover

Lao Cai Customs sees a triple-digit surge in export-import turnover

VCN - Updated from the beginning of the year to October 24, total import and export turnover through Lao Cai Customs Department increased by 102%.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Logistics sector must embrace innovative trends to stay competitive

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.
Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
UKVFTA greatly benefits Vietnam-UK trade: Experts

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Agricultural exports likely to exceed 60 billion USD amid challenges

Agricultural exports likely to exceed 60 billion USD amid challenges

With swift production recovery and continued growth, Vietnam's agricultural sector could potentially surpass the 60 billion USD export target, according to the Ministry of Agriculture and Rural Development (MARD).
Vietnam-Philippines trade likely to exceed 8 billion USD for first time

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.
Read More

Your care

Latest Most read
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - In recent years, Israel has always been Vietnam's leading tuna export market after the US and the EU. Therefore, the recent escalation of Israel-Iran tensions is affecting Vietnam's tuna exports to this market.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countr
Mobile Version