Vietnam’s process manufacturing attractive to foreign investors

VNA
Vietnam’s process manufacturing sector has to date attracted US$252 billion in foreign direct investment (FDI), accounting for nearly 60 percent of the total foreign capital poured into the Southeast Asian country.
Vietnam’s process manufacturing attractive to foreign investors ảnh 1 Illustrative image (Photo: VNA)
According to the Foreign Investment Agency under the Ministry of Planning and Investment, there are currently 34,898 valid FDI projects worth $426.14 billion in Vietnam.

In the first half of this year, the country lured $16.03 billion in FDI, of which the sector accounted for $8.84 billion, or 63 percent of the total.

The sector has been attractive to the world’s major groups such as Samsung, LG, Canon, Honda, and Toyota, reflected through their continuous expansion of investment in Vietnam.

Notably, the Republic of Korea (RoK)’s Samsung Group, which was officially licensed to invest in Vietnam with the Samsung Electronics Vietnam factory in Bac Ninh province, has expanded their operations to other localities, including Hanoi, Thai Nguyen province, and Ho Chi Minh City.

Andrew Lee, Korean Desk Manager at Savills Vietnam, said that the Korean business community appreciates Vietnam’s process manufacturing sector thanks to the country’s advantages in labor force, political stability, and inclusive and extensive international integration.

To make FDI projects in the sector effective, economists are advising Vietnam to be stricter in selecting projects to attract those with good financial potential, less labor intensive, and bringing about high added value.

VNA

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