Many foreign enterprises find opportunities and expand investment in Vietnam

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https://haiquanonline.com.vn/nhieu-doanh-nghiep-nuoc-ngoai-tim-kiem-co-hoi-mo-rong-dau-tu-vao-viet-nam-185894.html

According to Mr. Ko Tae Yeon, General Director of Heesung Electronics Vietnam – a Korean-invested company, his company specialized in manufacturing audio-visual products for cars and back covers for OLED TVs, and also a supplier for LG Display. Heesung Electronics Vietnam officially went into operation in 2018. Assessing Vietnam’s investment environment, a representative of Heesung Electronics Vietnam said that Vietnam was a place with a favourable location, not only geographically. but also geopolitics; the Government had many activities to promote free trade agreements with many countries; the domestic market also had great potential in terms of population and especially the high proportion of young population.

According to the Foreign Investment Department, Ministry of Planning and Investment, many large projects are in the fields of energy (production of batteries, photovoltaic cells, silicon bars), production of components, electronic products, and high-value products increased new investment and expanded capital in the past 4 months.

Specifically, as of April 20, 2024, the total newly registered capital, adjustments and capital contributions for purchasing shares, and capital contributions of foreign investors reached more than US$ 9.27 billion, an increase of 4.5%. compared to the same period in 2023. Implemented capital of foreign investment projects is estimated to reach about US$ 6.28 billion, an increase of 7.4% over the same period in 2023.

Also according to the Foreign Investment Department, April 2024 recorded a higher amount of new investment capital and value of capital contribution and share purchase transactions than in the first months of 2024, and the number of new investment projects also reached the highest level from the beginning of the year. The increase in total registered investment capital compared to the same period in 2024 reached 4.5%. In terms of number of projects, China is the leading partner in the number of new investment projects and Korea is the leading partner in the number of capital adjustments.

A representative of Heesung Electronics Vietnam said that it took this company more than a year to choose a country to locate its factory. “At that time, we analyzed the pros and cons among Vietnam, Thailand, Indonesia and Myanmar. We compared population, government policies, business environment and infrastructure and clearly found that Vietnam was the ideal destination. And I know that many other foreign-invested enterprises are currently conducting similar types of feasibility studies”, said Mr. Ko Tae Yeon.

Sharing about choosing Hai Phong as the location for the production headquarters, Mr. Ko Tae Yeon said that this choice depended on the products produced and the mode of transportation for export. According to observations, the majority of foreign-invested enterprises investing in this city mainly exported via sea, not air. Comparing between Samsung in Bac Ninh and LG in Hai Phong, Mr. Ko Tae Yeon said that, at Samsung, their main products were mobile phones so they need to be located closer to the airport. Meanwhile, LG’s main products were previously washing machines, televisions and currently auto components, mainly exported by sea. In addition, Hai Phong had the advantage of a complete logistics system with a convenient seaport system. More importantly, city leaders were interested in investment promotion activities to attract foreign investors.

Information about the plan to expand operations in Vietnam, a representative of Heesung Electronics Vietnam said: “We are still in the negotiation process, but it is certain that in the coming time, many manufacturing enterprises will continue the trend of shifting from China to Vietnam. So, I think about many opportunities here and our company is still trying to expand and capture this opportunity. In the short term, we can commit to continuing to invest in expanding production in Hai Phong”, said Mr. Ko Tae Yeon.

Sharing on the sidelines of the Vietnam 2024 Smart Production Chain and Global Supply Chain Conference in Hanoi recently, Mr. Liu Yang Wang, General Director of Solex Hight – Tech Industries Vietnam Co., Ltd. said that the enterprise had conducted surveys in many countries in the Southeast Asian market, but then decided to choose Quang Ninh (Vietnam) to invest in a manufacturing factory.

The reason why Solex Hight – Tech Industries Vietnam Co., Ltd. decided to locate a factory in Vietnam was that the supply chain of Vietnam’s manufacturing industries was now quite complete, in addition, Vietnam’s workforce was stable, most of whom were young workers with many skills. Besides, the distance between China and Vietnam was also quite close, being convenient for travel and production and business activities of the company. Mr. Liu Yang Wang said that Solex Hight – Tech Industries was an enterprise of Fujian province (China) and many leading reputable enterprises of Fujian province had production bases in Vietnam. Commenting on investment trends in Vietnam in the coming time, Mr. Liu Yang Wang said that there were many businesses in Fujian province wanting to come to Vietnam to invest.

Sharing from the perspective of consulting enterprises, Mr. Chau Hoanh, Representative of DH Vietnam Consulting Company Limited – a Chinese enterprise operating in the field of consulting for Chinese enterprises to invest in Vietnam, said that his enterprise had been operating in Vietnam since 2017. Since then, this company had successfully advised more than 100 Chinese enterprises to rent land in industrial parks to open production and business factories in Vietnam. Commenting on the prospects of attracting investment from Chinese enterprises to Vietnam. Mr. Chau Hoanh said that Chinese investment in Vietnam would continue to prosper in the coming time, especially in the fields of supporting industries for electronics, machinery, hotels and restaurants and health care.

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