According to data from the General Statistics Office (Ministry of Planning and Investment), as of December 20, 2023, the total registered capital for new projects, adjustments, and capital contributions through share purchases by foreign investors reached over US$36.6 billion, an increase of 32.1% compared to the same period in 2022.
This year saw the highest level of realized FDI capital ever recorded, and also the most impressive increase since the Covid-19 pandemic emerged and broke out in 2020.
 |
| The National Innovation Center at Hoa Lac High-Tech Park (NIC Hoa Lac). (Source: Dan Tri Newspaper) |
Many advantages to attract FDI.
Speaking with a reporter from TG&VN , Director General of the General Statistics Office Nguyen Thi Huong commented that the above results were achieved due to the continuously improving and attractive investment environment with many outstanding advantages.
During the year, several projects attracted very high registered capital, such as: the liquefied natural gas (LNG) thermal power plant project in Thai Binh from Japan; the JINKO SOLAR Hai Ha Vietnam photovoltaic cell technology complex project; the Lite-on Quang Ninh plant project; and the LG Innotek Hai Phong plant project. These four large projects attracted nearly $5.2 billion in investment during the year.
The Director General of the General Statistics Office assessed: “The continued inflow of FDI into Vietnam affirms the confidence of foreign investors in stable macroeconomic policies; a transparent and safe investment environment; the Government and the Prime Minister always accompanying and supporting the business community to overcome difficulties, stabilize and develop production and business; and many fiscal and monetary policies aimed at supporting businesses have been effectively implemented. These factors have positively impacted foreign investors' decisions to make new investments, as well as expand existing projects in Vietnam.”
In particular, Ms. Nguyen Thi Huong stated that, over the past year, the economic diplomacy activities of the Party and Government have been strengthened, and Vietnam has upgraded its relations with Japan and the United States to Comprehensive Strategic Partnerships, expected to bring about a new wave of high-quality investment. This could be an optimistic trend, and she believes that FDI inflows into the country will continue to grow well in 2024 and subsequent years.
A busy year for the semiconductor industry.
2023 marked a vibrant year for Vietnam in attracting investment in the semiconductor industry. During the year, a series of leading global companies in this field continuously invested in Vietnam with projects worth billions of USD.
Specifically, Hana Micron Vina Co., Ltd. (South Korea) inaugurated its Hana Micron Vina 2 manufacturing plant in Van Trung Industrial Park (Bac Giang province) in September 2023. With a total investment of nearly $600 million, this is the first semiconductor manufacturing plant in Northern Vietnam. The company plans to increase its investment to over $1 billion by 2025.
In October 2023, Amkor Group inaugurated the Amkor Technology Vietnam (ATV) factory in Yen Phong II-C Industrial Park, Bac Ninh. The project has a total investment of US$1.6 billion by 2030, with Phase I accounting for US$520 million. The semiconductor testing and packaging service provider, established in 1968, stated that it will continue to research and implement investment in Phases 2 and 3 of the factory, making Bac Ninh one of the world's new semiconductor chip manufacturing hubs.
For example, Samsung, a major FDI investor in Vietnam, has committed to investing over $2.6 billion in the semiconductor industry at the Samsung Electro-Mechanics Vietnam factory in Thai Nguyen.
In addition to investing in manufacturing in Vietnam, leading global technology corporations are planning to establish research and development (R&D) centers in Vietnam – a crucial step in production that serves as a springboard for advanced high-tech products. For example, the US-based integrated circuit design firm Marvell has announced plans to soon establish a large-scale design center in Vietnam. It is projected that the workforce will increase by 50% within three years.
These projects are the clearest evidence that Vietnam is on the right track in attracting high-quality FDI. Localities such as Bac Giang, Bac Ninh, Thai Nguyen, and Ho Chi Minh City are not only leading centers for electronic component assembly but also have the potential to become leading centers in the industry.
The time has come!
During a meeting with the Minister of Planning and Investment, Nguyen Chi Dung, in December 2023, John Neuffer, President of the Semiconductor Industry Association (SIA), assessed that many SIA companies had made significant investments in Vietnam, including Intel, Marvell, Synopsys, Qualcomm, Ampere, and Infineon. Some businesses have doubled their investment capital after years of operating in the country.
“These investments are a testament to Vietnam’s crucial and growing role in the global semiconductor supply chain. This is the time for the country to join the global supply chain, becoming a vital link in the semiconductor supply chain. Vietnam is well-positioned to benefit from the new waves of investment from chip companies striving to build stronger and better supply chains worldwide,” the SIA Chairman affirmed.
In December 2023, during a visit to Vietnam, Jensen Huang, co-founder, chairman, and CEO of NVIDIA – one of the leading American chip corporations – stated that a new wave of technology was coming, possibly the biggest wave ever.
“The new wave presents a great opportunity for Vietnam. No country can lag behind in artificial intelligence (AI) and still develop. Therefore, the country needs to leverage the advantages of AI to seize and develop artificial intelligence. I believe Vietnam is ready and well-prepared; this is your opportunity,” he emphasized.
To take advantage of this new wave, Jensen Huang said that Vietnam is ready to digitize as the majority of its population has access to mobile phones. In addition, Vietnam has software engineers who are ready to jump to the next level in AI. Vietnam demonstrates a strong commitment to an AI-driven, artificial intelligence-driven, and digitized Vietnam.
Minister Nguyen Chi Dung informed that the country has actively prepared the conditions to be ready to welcome and cooperate with businesses and investors in the semiconductor industry supply chain.
Vietnam has perfected its one-stop mechanism, developed a plan to develop human resources in the semiconductor industry to reach 30,000 semiconductor engineers by 2030, and established the National Innovation Center at Hoa Lac High-Tech Park (NIC Hoa Lac) to be ready to receive semiconductor investment projects with the most favorable incentives.
Professor Nguyen Mai, Chairman of the Vietnam Association of Foreign Investment Enterprises (VAFIE), believes that the global chip market will reach $1.4 trillion by 2029, up from approximately $600 billion in 2022. Therefore, the opportunities for Vietnam in this "giant pie" are enormous.
The professor stated his view: "Semiconductor technology is a global issue. Developed countries are offering incentives to expand research and production in this industry. Vietnam doesn't have much money to invest, so it has to rely on attracting FDI to develop."
In fact, Vietnam is currently one of the top choices for leading global chip investors. Professor Nguyen Mai stated that the important thing now is to change the approach to incentives in order to seize this great opportunity.
Vietnam and many developing countries often choose tax incentives to attract capital. However, with global minimum tax regulations, attracting FDI in the future will have to focus on incentives related to investment costs and expenditures for businesses through financing.
As Professor Nguyen Mai assessed, policy changes to attract early investment, “will give Vietnam many opportunities to establish a semiconductor industry. This will create a huge boost for the economy, increase added value, and create a ripple effect not only in attracting foreign capital but also in drawing domestic capital into this value chain.”
Source
![[Photo] Prime Minister Pham Minh Chinh presides over a meeting on private sector economic development.](/_next/image?url=https%3A%2F%2Fvphoto.vietnam.vn%2Fthumb%2F1200x675%2Fvietnam%2Fresource%2FIMAGE%2F2025%2F12%2F20%2F1766237501876_thiet-ke-chua-co-ten-40-png.webp&w=3840&q=75)
Comment (0)