Vietnam has become a new destination for global technology corporations in the past year…
Foreign direct investment (FDI) in Vietnam reached nearly 31,4 billion USD in the first 11 months of 2024, with disbursed FDI estimated at about 21,7 billion USD, up 7,1% over the same period in 2023. This has helped Vietnam enter the top 15 developing countries attracting the most FDI in the world.
Of which, Bac Ninh is the leading province in the country with a total registered investment capital of nearly 5,04 billion USD, accounting for 16% of the total investment capital of the country, an increase of more than three times compared to the same period in 2023. Quang Ninh ranked second with 2,29 billion USD of registered capital, followed by Ho Chi Minh City with 2,28 billion USD, followed by Hai Phong, Hanoi and Binh Duong.
FDI capital in 2024 will largely focus on high-value industries such as Electronics, Semiconductors and Green Technology. Experts predict this trend is likely to continue this year.
Some notable technology cooperation events in 2024 include the agreement to establish the Vietnam Research and Development Center and the Artificial Intelligence (AI) Data Center between the Government and the leading US chip manufacturer, NVIDIA in Vietnam. This is an important milestone to make Vietnam one of the leading AI research and development centers in Asia and the third globally, after the United States and Taiwan.
Last August, Signetics Joint Stock Company signed a cooperation agreement with CNCTech Group to implement the Semiconductor Factory Project in Vinh Phuc Province. This project is expected to have an area of over 8 m50.000 in Ba Thien Industrial Park - Zone I (in Binh Xuyen District) and a total investment of over 2 million USD.
In November 11, Apple electronics supplier Foxconn announced an $2024 million investment in chip manufacturing in Bac Giang province. Meta also plans to expand its virtual reality device production in Bac Giang. At the same time, LG Innotek also invested about $80 million to expand its manufacturing branch in Hai Phong.
SpaceX's senior vice president of global business and government affairs, Tim Hughes, when meeting with senior Vietnamese leaders in 2024, also said that the US spacecraft supplier plans to invest 1,5 billion USD in Vietnam this year.
Although the increase in FDI capital brings many opportunities, economic experts also emphasize the need to be cautious in the trade war between economies.
According to Mr. Vo Tri Thanh, Director of the Institute for Brand Strategy and Competitiveness, the deeper Vietnam integrates into the global market, the greater the pressure on trade defense litigation. In particular, it is necessary to pay attention to trade fraud activities, taking advantage of Vietnam as a transit point for export goods to avoid tariffs.
Therefore, Mr. Vo Tri Thanh especially noted two important issues when attracting FDI.
First, Localities competing to attract FDI need to carefully consider projects that pollute the environment or do not meet safety and environmental standards.
Monday, Carefully evaluate small projects with low investment capital, mainly in the final stage of production to take advantage of Vietnam as an export springboard.
Previously, sharing with VnEconomy, many experts said that from the practice of FDI capital invested in Vietnam in recent times, it can be seen that a new trend has emerged, according to which FDI capital focuses on green and clean technology fields and goes into high-tech fields such as chip and semiconductor manufacturing. These are the positive points of FDI capital flows into Vietnam in recent years.
According to experts, the above signs also pose new requirements for Vietnam regarding human resources in the high-tech and semiconductor industries, requiring adaptive solutions to absorb high-quality investment capital flows from foreign corporations.
