Three Foreign Firms to Invest $3.7 billion in Vietnam
|At the meeting betweeen Prime Minister Pham Minh Chinh and foreign investors. Photo: VGP
Minister of Planning and Investment Nguyen Chi Dung said at a meeting in Hanoi on April 22 that a Korean firm would invest $1.6 billion in the fields of heavy industry and logistics, while a German investor would pour $1.5 billion into a green production project using renewable energy. Elsewhere, approximately $600 million would be invested by a Japanese company in order to produce medical equipment in Vietnam, according to VOV.
At the meeting, Gabor Fluit, Chairman of the European Chamber of Commerce in Vietnam (EuroCham), pointed out that despite facing various obstacles, Vietnam remains a rising star in terms of business and investment.
He recommended that the government seek to introduce appropriate and competitive preferential policies aimed at attracting investment, especially ahead of the enforcement of the global minimum tax regulation slated for 2024.
He underscored the need to harmonise administrative procedures and tax policies as a way of promoting trade growth within the framework of the EU-Vietnam Free Trade Agreement (EVFTA).
Takeo Nakajima, Chief Representative of the Japan Trade and Promotion Organization (JETRO) Hanoi, affirmed that Japanese businesses are willing to invest further in the Vietnamese market. He cited a JETRO survey highlighting that 47% of questioned businesses are seeking to expand their operation over the next one or two years.
|Takeo Nakajima, Chief Representative of the Japan Trade and Promotion Organization (JETRO) Hanoi. Photo: VGP
Hong Sun, Chairman of the Korean Business Association in Vietnam (Kocham), revealed that the RoK Government and businesses view Vietnam as their best cooperation partner. He assessed that Korean investments in Vietnam are diverse, ranging from production and manufacturing to services, as well as from labour-intensive industries to high-tech industries.
Roughly 9,000 Korean enterprises have already invested in the Vietnamese market, employing a total of 700,000 local people.
Many Korean businesses operating in Vietnam, especially high-tech, financial, and energy firms, are considering increasing their investment capital and making new investments, providing that the local investment environment remains stable, he said.
Like Japanese investors, he said that Korean firms will feel safer in the country providing that the Government further simplifies administrative procedures and introduces fresh incentives.
Hong Sun also revealed that along with Samsung already investing $20 billion in Vietnam, other Korean brands such as LG Electronics, LG Display, and LG Innotek are in the process of expanding investments in the country as a means of making it a global production base for automotive electrical circuits, electronic equipment, and home appliances.
To anticipate the investment wave, Minister Nguyen Chi Dung said that the Vietnamese side would introduce new investment support incentives amid the enforcement of the global minimum tax slated for 2024 to increase the competitiveness of the local investment environment and harmonise benefits of investors.
Handing problems with trust, companionship
|Prime Minister Pham Minh Chinh said all problems can be solved with trust, sharing, listening, understanding and companionship. Photo: VGP
At the meeting, Prime Minister Pham Minh Chinh said all problems can be solved with trust, sharing, listening, understanding and companionship, VietnamPlus reported.
Highlighting the Vietnamese Government’s wish to listen to, understand and accompany foreign investors, as well as efforts to improve the country’s business environment, the PM said that the Party and State always consider the foreign-invested sector one of the important part of the national economy, with healthy competition and equality with other economic sectors.
Vietnam respects and protects the legitimate and legal rights and interests of investors, ensuring the harmony in interests of the State, investors and labourers, not criminalising economic and civil relations but strictly punishing law breakers to protect those who comply with the law and are responsible to the community and the common development, he said.
The Government leader hailed the determination and effective operations of foreign firms in Vietnam, which is the key to the successful partnership between the two sides.
The PM held that in the context that the world and regional situation is developing complicatedly and the Organisation for Economic Cooperation and Development (OECD) plans to apply a global minimum tax from 2024, the two sides should strengthen mutual trust, sharing, listening, understanding and companionship./.
Vietnam remains in the top five global investment destinations for European enterprises, according to the European Chamber of Commerce in Vietnam (EuroCham).
German Prof. Rainer Zitelmann said that Vietnam has the opportunity to become one of the leading economic powers.
In the recently published BCI report of EuroCham, Vietnam is still a destination that strongly attracts FDI inflows for European business leaders.