Vietnam’s FDI attraction wins big

In late September, Long Son Petrochemicals (LSP)’s integrated petrochemical complex, the first of its kind in Vietnam, was put in commercial operation. A subsidiary of the SCG Chemicals (SCGC) and a member of the Thai SCG Group, it has a total investment capital of more than 5 billion USD. The complex is expected to earn a revenue of 1.5 billion USD and contribute 150 million USD related to the value added tax to the budget each year.

On September 26, the Philippines’ Aboitiz Foods inaugurated a 45 million USD animal feed plant in Ben Luc district, the Mekong Delta province of Long An. The Gold Coin Feedmill Long An, one of the most advanced feed mills in Southeast Asia, has a designed capacity of 300,000 tonnes per year, increasing Aboitiz Foods' total annual feed production in Vietnam to 1.1 million tonnes.

Also in Long An, Vietnam’s Dong Tam Group and CS Wind Group of the Republic of Korea (RoK) on September 10 signed a cooperation agreement on land leasing for a large-scale wind power equipment factory whose total investment capital hits 200 million USD.

In the northern region, on September 28, China’s Deli Group broke ground for its new stationery manufacturing plant at the Dai An Expanded Industrial Park in Hai Duong province.

The 270 million USD factory, covering an area of 21.2 hectares, is set to operate for 50 years. Once completed, it is expected to produce over 104 million stationery and household items made from paper and plastic annually. Additionally, it will manufacture more than 2.4 million electronic products, including personal computers, photocopiers, and shredders, as well as 22.5 million rubber products such as balls, sticks, and mats.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, total registered foreign investment, including new capital, adjustments, and capital contributions via share purchases, exceeded 24.78 billion USD in the first nine months of this year, up 11.6% year-on-year.

In September alone, foreign capital neared 4.26 billion USD, the highest monthly figure this year and accounting for 17.2% of the nine-month total.

In January-September, FDI disbursement was estimated at 17.3 billion USD – the highest in the past five years, representing a year-on-year rise of nearly 9%.

The Ministry of Planning and Investment assessed that FDI flows continue to concentrate in provinces and cities with advantages in attracting foreign investment, such as good infrastructure, stable human resources, efforts to reform administrative procedures, and dynamic investment promotion. Notable locations include Bac Ninh, Ho Chi Minh City, Quang Ninh, Ba Ria-Vung Tau, Binh Duong, Hanoi, Hai Phong, Dong Nai, Bac Giang, and Ninh Thuan. These ten localities accounted for over 80% of the number of new projects and nearly 73% of total investment capital in the country over the past nine months.

Many large projects in sectors such as semiconductor and energy, and in the manufacturing of electronic components and high-value-added products have been newly invested in or expanded in the period.

On October 1, the Innovate Vietnam 2024 conference in Hanoi, Meta’s President of Global Affairs Nick Clegg confirmed that an affordable line of Meta virtual reality glasses will be produced in Vietnam.

The Quest 3S line uses a similar technology to its predecessor model Quest 3, but will be cheaper and lighter, he added.

On September 25, at a meeting with Vietnam’s Party General Secretary and State President To Lam as part of his US trip, Tim Hughes, Senior Vice President for Global Business and Government Affairs of the US-based provider of spacecraft, satellite launch services, and satellite communications SpaceX, informed that the group aims to inject 1.5 billion USD into the country in the near future./.