Three foreign groups plan to pour $3.7B into Vietnam

By VNA April 23, 2023 | 03:45 am PT

Foreign investors at a meeting with Prime Minister Pham Minh Chinh on April 22, 2023. Photo by the Ministry of Planning and Investment

Three foreign groups unveiled plans to pour $3.7 billion into Vietnam at a meeting with Prime Minister Pham Minh Chinh in Hanoi Saturday, according to the Ministry of Planning and Investment.

A group from South Korea is to invest $1.6 billion in heavy industry and logistics production; a German investor is eyeing green production using renewable energy with an estimated capital of $1.5 billion; and a Japanese investor plans to spend $600 million on medical equipment production.

Gabor Fluit, Chairman of the European Chamber of Commerce in Vietnam, said despite several barriers, Vietnam remains a rising star in business and investment.

The European business community in Vietnam is committed to standing side by side with the Vietnamese government to build a prosperous and resilient nation, toward sustainable development and green economy, Fluit said.

Takeo Nakajima, Chief Representative of the Japan External Trade Organisation (JETRO) in Hanoi, said Japanese enterprises are ready to invest in Vietnam. Its survey showed that 47% of respondents will expand their operations in Vietnam in the next two years. He also expressed wish to see more foreign direct investment in Thanh Hoa, Quang Ninh and Thai Binh.

Hong Sun, Chairman of the Korea Chamber of Business in Vietnam (Kocham), said there are about 9,000 Korean businesses investing in Vietnam at present, with bilateral trade turnover reaching a record high of $87.7 billion last year.

Many Korean businesses investing in Vietnam are considering an increase in their capital and making new investments if the business environment remains stable, especially in high technology, finance and energy.

To welcome the investment wave, Minister of Planning and Investment Nguyen Chi Dung said, Vietnam needs to prepare the necessary conditions, including "packages" of preferential policies and support in the context of the global minimum tax to be applied in 2024, improve the competitiveness of the investment environment and harmonize the interests of investors.

In the long term, Vietnam will continue to remove bottlenecks in mobilizing resources and production and trade. It will step up the disbursement of capital, and consolidate trust with the motto "Placing the people and businesses at the center, the subject, the goal and the driving force of development," he said.