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Vietnam will be an important link in the global supply chain. (Photo: VNA)

Foreign investors’ confidence in Vietnam remains strong

Vietnam has seen a robust increase in the inflow of the foreign investment despite global geopolitical uncertainty, affirming foreign firms’ sentiments in the Southeast Asian market, according to insiders.

The Ministry of Industry and Trade stated in an announcement that the investors’ confidence in the Vietnamese Government’s policy as well as the nation’s economic outlook has been consolidated. Meanwhile, global corporations stressed that Vietnam has an incredible opportunity to become an indispensable link in the global supply chain.

Tech giants from the Republic of Korea described Vietnam as their global key production base, while meeting with Prime Minister Pham Minh Chinh.

Besides, many billion-USD projects have been effectively implemented in Vietnam, including those of Samsung, LG, Foxconn, Goertek, Amkor, and HanaMicron, cited VNA.

During January-June, nearly US$15.2 billion in foreign investment was funneled into Vietnam, up 13.1% year-on-year. The country is forecast to lure some US$39-40 billion in foreign capital this year, equivalent to the figure of 2023.

Even during the tough time of COVID-19, the country was among the top 20 countries attracting the most foreign direct investment in the world as it garnered US$20-22 billion at the time.

In recent years, various projects in the domains of semiconductor, energy, and production of parts, electronic products, and goods with high added value have landed and expanded in the country. Furthermore, Vietnam has great chances to attract investments to pioneering industries like AI and hydrogen.

Experts attributed Vietnam’s increasing attractiveness to foreign investors to the country’s important role in the multinational producers’ strategies to diversify their supply chains, as well as its sound economic recovery and stable macroeconomy.

The Government is striving to better the investment and business climate to create favorable conditions and support the investors in the win-win spirit, and for the benefits of the nation, people, and foreign enterprises.

Amidst stiff competition in the foreign investment attraction, Vietnam should work to remove bottlenecks, from improving its human resources to preparing infrastructure, land and energy, and renewing and simplifying investment procedures.

They also underlined the necessity to promote technology transfer and make Vietnamese firms deeply involved in the global supply chain.

Vietnam – a destination of pioneering industries

Vietnam has a prime opportunity to lead in attracting technological "eagles".

Earlier this month, Foxconn Group received the green light from the Quang Ninh provincial authorities to launch two projects worth US$551 million in the province. These projects, aimed at producing smart entertainment products and smart systems, fall within Quang Ninh's target industries for investment in processing and manufacturing.

With these initiatives, Foxconn's total investment in Quang Ninh rises to nearly US$1 billion and surpasses US$3 billion in Vietnam overall. The company is involved in large-scale electronics and components projects in Bac Giang and Bac Ninh provinces, including the manufacturing of equipment and components for Apple. Last month, Foxconn also invested US$383 million in a project at the Nam Son Hap Linh Industrial Park in Bac Ninh.

Meanwhile, Amkor Group recently obtained an amended investment certificate to boost its investment by an additional US$1.07 billion for its semiconductor project in Bac Ninh. This decision has propelled the total investment in the Amkor project to US$1.6 billion, a staggering 11 years ahead of schedule. Initially, Amkor had projected to invest only US$1.6 billion in Vietnam by 2035.

In addition to these two investors, recent reports indicate that numerous prominent technology corporations like Samsung, LG, and industry giants such as Hyosung, CJ, and Posco are gearing up to inject billions more into Vietnam in the near future.

At a recent meeting with Prime Minister Pham Minh Chinh during his official visit to the Republic of Korea, Jeong Cheol-dong, CEO of LG Display, said LG had already poured over US$5 billion into investments in Vietnam and planned to invest an extra US$3 billion over the next five years. As part of this expansion, the LG Innotel factory aimed to double its capacity, solidifying LG's integrated production hub in Vietnam. Jeong added that LG viewed Vietnam as its critical manufacturing hub.

Meanwhile, Samsung has long regarded Vietnam as a global manufacturing hub, having invested over US$22.4 billion and consistently increasing its capital in recent years by an average of around US$1 billion annually. With the opening of its Research and Development (R&D) Center in late 2022, Samsung has designated Vietnam as the group's global R&D hub - a designation that Vietnam had never anticipated.

This, however, is just the beginning, as Vietnam is increasingly becoming a focal point for global corporations in the semiconductor and AI sectors. Companies like Intel, Amkor, HanaMicron, Marvell, and Synopsys have already invested in Vietnam and continue to do so.

Meanwhile, NVIDIA Corporation is progressively actualising its vision of making Vietnam its “second home”.

Minister of Planning and Investment (MPI) Nguyen Chi Dung recently engaged in an online discussion with NVIDIA to explore further collaboration plans.

The interest of tech giants in Vietnam is palpable. In a recent statement, the MPI highlighted that not only would numerous large-scale projects spanning semiconductors, energy (including battery production, photovoltaic cells, and silicon bars), component manufacturing, electronics, and high-value-added products see fresh investments and expanded capital in the first half of this year, but Vietnam also held promise in attracting investments across cutting-edge industries like AI, semiconductors, hydrogen, and renewable energy.

The MPI is currently finalizing a Draft Decree concerning the establishment, management, and utilization of the Investment Support Fund. This initiative aims to provide support from the Government to high-tech enterprises, companies engaged in producing high-tech goods, and those undertaking high-tech application projects.

According to Statista Market Insights, Vietnam is poised to experience a Compound Annual Growth Rate of 11.6% in semiconductor revenue from 2023 to 2027, reaching US$31.28 billion by 2027. Within this projection, integrated circuits, the cornerstone of the semiconductor industry, are anticipated to hit US$16.44 billion this year.

Google's forecast suggests that Vietnam's digital economy is set to surge elevenfold by 2030, reaching US$220 billion, nearly half of the country's current GDP. AI will play a pivotal role in Vietnam's realization of these forecasts, according to Marc Woo, managing director of Google Asia Pacific for Vietnam.

The forecast appears clearly optimistic. However, given the intensifying competition for investment attraction, Vietnam must act swiftly in the present landscape; otherwise, it would miss out on this unparalleled opportunity.

In a recent report to the Government, Minister of Planning and Investment Nguyen Chi Dung highlighted the persisting challenges facing the economy, noting that emerging sectors like the digital economy, green economy, AI, chips, and semiconductors are lagging, risking Vietnam's competitiveness on a global and regional scale.

The MPI reported that despite a steady rise in foreign investment in Vietnam, the number of large-scale projects with advanced technology remained limited. Vietnam has attracted only 108 projects exceeding US$500 million in investment, averaging 15 projects annually, with a mere 27 falling within the high-tech sector.

“Immediate steps are required to cultivate skilled human resources, particularly in semiconductor electronics to sustain and enhance investment appeal. Simultaneously, addressing local electricity shortages in regions housing numerous electronics industry ventures is imperative. Additionally, streamlining processes to simplify and expedite post-investment registration procedures, such as obtaining construction permits and fire safety certifications, is crucial,” Dung said.

However, this is just one of the challenges. The pressure to compete for foreign investment in the high-tech sector is intensifying, with many countries, including the US, Europe, the Republic of Korea, Japan, Malaysia, Indonesia, and Thailand, requiring substantial investment support policies.

The RoK, for instance, has unveiled a 26 trillion won (approximately US$19 billion) support initiative to bolster the chip industry. Malaysia issued the New Industrial Master Plan 2030 by the end of 2023, with an estimated scale of around US$20 billion, aimed at revitalizing Malaysia's industries, particularly in electronics, chemicals, electric vehicles, aerospace, pharmaceuticals, medical equipment, and advanced materials. China has established a US$27 billion semiconductor investment fund to enhance the self-sufficiency of its semiconductor industry. The US and Europe are prepared to allocate tens of billions of dollars to support investors in the semiconductor sector.

The increasing pressure asks Vietnam to ready its human resources, infrastructure, and other key elements while implementing globally competitive investment support policies to both retain current investors and entice more industry leaders, according to VOV.

A corner of the central city of Da Nang (Photo: VNA)

At recent discussions, multinational corporations have shown interest in contributing to Vietnam's Investment Support Fund. The MPI is completing the Draft Decree on the establishment, governance, and utilization of this fund. This initiative is designed to extend governmental support, including financial assistance, to high-tech enterprises; firms engaged in high-tech product manufacturing; those undertaking high-tech application projects; and companies investing in R&D centers, provided they meet specific criteria.

If this proposal is approved, it could serve as a catalyst for Vietnam to attract additional tech powerhouses and solidify its status as a hub for cutting-edge industries.

Efforts made to help firms join global semiconductor supply chain

The MPI has taken various solutions to support domestic firms to join the global semiconductor supply chain more intensively.

Bui Anh Tuan, Chief of the Office of the MPI, said in a recent meeting that the ministry had also given consultancy to competent agencies to perfect relevant policies and laws to facilitate investment, while enhancing international cooperation in this field.

It has coordinated with other ministries and agencies in drafting a project on human resources development in service of the semiconductor industry by 2030 with a vision towards 2050, which was submitted to Prime Minister Pham Minh Chinh for approval, and proposing the establishment of a national steering committee for the development of the sector.

Minister Dung pointed out difficulties facing other sectors in Vietnam, such as retail, housing, and real estate, along with major tasks set for the remaining months of this year. He stressed the need to effectively put in place newly issued policies and regulations, and roll out breakthrough solutions to spur growth, asking agencies to join hands in building socioeconomic plans, orientations, tasks and solutions for 2025.

The minister also urged preparations for the all-level Party congresses, towards the 14th National Party Congress, as well as reforms, breakthroughs and innovation in development during the 2026-2030 period.

Up to 300mm of rain expected in Northern Vietnam amid flood warnings

Northern Vietnam is set to experience widespread heavy rainfall from the night of July 28th until July 31st, with some areas expecting up to 300mm of rain, raising concerns about potential floods, landslides, and inundation.

Starting from the night of July 28th, Northern Vietnam is set to experience widespread heavy rainfall lasting until the end of July 31st, due to the influence of a low-pressure trough connected to a low vortex developing from the surface up to an altitude of 5,000 meters.

The heaviest rain is expected in the midland and northern mountainous areas, with amounts ranging from 70 to 200 mm, and localized areas potentially receiving over 300 mm. The plains will see less rain, generally between 50 and 150 mm, with some spots exceeding 200 mm.

From August 1st, the low-pressure trough over the Northern region will weaken, leading to reduced rainfall and the return of sunshine. However, in the afternoons and evenings, the midland and northern mountainous areas may still experience thunderstorms.

The Meteorological Department has indicated that the heavy rainfall in the coming days will exacerbate the existing flooding in some low-lying areas of Hanoi and further complicate the recovery from recent landslides in mountainous regions. This poses a significant risk of flash floods, landslides, and worsening inundation in low-lying areas, VNN reported.

Illustrative image.

The American weather forecasting service Accuweather predicts that temperatures in Hanoi will range from 27-33 degrees Celsius at the start of the week, rising to a high of 35 degrees Celsius by midweek. High-altitude areas over 1,500 meters, such as Sa Pa (Lao Cai), will see nighttime temperatures of 17-18 degrees Celsius, increasing to 20-27 degrees Celsius during the day.

In the central region, provinces like Thanh Hoa and Nghe An will also be affected by the northern low-pressure trough, bringing rain showers and thunderstorms on July 30-31. From Ha Tinh to Binh Thuan, rainfall will be minimal, with daily high temperatures ranging from 34-36 degrees Celsius.

In the Southern region and the Central Highlands, the southwest monsoon will continue to bring moderate intensity showers and thunderstorms, primarily in the afternoon and evening. Maximum temperatures in the Southern region will range from 31-33 degrees Celsius, and in the Central Highlands from 28-31 degrees Celsius.

As the southwest monsoon weakens in early August, rainfall will decrease, and temperatures will rise to 33-35 degrees Celsius in the Southern region and 29-32 degrees Celsius in the Central Highlands.

The Ministry of Agriculture and Rural Development has urged Northern provinces to quickly address the aftermath of recent floods and to review and reinforce areas prone to landslides and flash floods to ensure the safety of people and property during the upcoming heavy rains.

Provinces are also instructed to manage reservoir operations to ensure downstream safety, prepare for waterlogging protection in agricultural fields, industrial areas, and urban zones, and to mobilize rescue teams and equipment as needed.

Vietnam wins five medals at int’l physics Olympiad

The gold medals went to Than The Cong and Truong Phi Hung, both from Bac Giang High School for Gifted Students in the northern province of Bac Giang.

Meanwhile, three silvers went to Nguyen Nhat Minh from the High School for Gifted Students of the Hanoi University of Science under the Vietnam National University, Hanoi, Ha Duyen Phuc from Lam Son High School for Gifted Students in the central province of Thanh Hoa, and Nguyen Thanh Duy from Tran Phu High School for Gifted Students in the northern port city of Hai Phong, cited VNA.

Vietnamese students win two gold and three silver medals at the 2024 International Physics Olympiad. (Photo: VNA)

Nearly 200 high school students from across the globe compete in the 54th physics contest, one of the world's science competitions, which took place from July 21-29 (local time). The competition had two parts - theoretical and practical exams, each five hours long.

Last year, the Vietnamese team bagged two gold, two silver and one bronze medals.

The IPhO has been an annual event for high school students since 1967. Vietnam joined the contest for the first time in 1981.

Hanoi announces 30 fireworks shows for October 9 to mark historic anniversary

The Hanoi People's Committee has announced plans to organize 30 fireworks displays across various districts at 9:30 p.m. on October 9, 2024, to celebrate the 70th anniversary of Capital Liberation Day.

To mark the 70th anniversary of the Capital Liberation Day (October 10, 1954 - October 10, 2024), Hanoi will host 30 fireworks displays at 31 locations.

The main event will feature a high-altitude and low-altitude fireworks show at My Dinh National Stadium in Phu Do Ward, Nam Tu Liem District, comprising 800 fireworks and 24 pyrotechnics with 480 tubes, cited VNN.

Hanoi will organize 30 fireworks displays to celebrate the 70th anniversary of Capital Liberation Day. Photo: Viet Thanh

Eight additional locations will host combined high-altitude and low-altitude displays, each featuring 600 fireworks. These locations include:

- In front of the headquarters of Hanoi Moi newspaper and the Hanoi Post Office (Hoan Kiem District)

- Lac Long Quan Flower Garden (Tay Ho District)

- Dua Island, Thong Nhat Park, Le Dai Hanh Ward (Hai Ba Trung District)

- Van Quan Lake, Van Quan Ward (Ha Dong District)

- Son Tay Ancient Citadel (Son Tay Town)

- Project land of the regulating lake, Tam Hiep Commune (Thanh Tri District)

- Dong Anh District Sports and Physical Training Center

The remaining 22 districts will each host low-altitude fireworks displays.

The fireworks displays will last for 15 minutes, from 9:30 p.m. to 9:45 p.m. on October 9, 2024.

The Hanoi People's Committee stated that the purpose of these displays is to evoke pride, honor the heroic spirit, and highlight the historical significance and revolutionary traditions of the city. These events are intended to inspire and motivate the public to continue building a thousand-year-old civilized and heroic capital.

The Committee has requested all involved agencies and units to adhere to the prescribed schedule and ensure absolute safety during the events.

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