Many large projects in the semiconductor and energy sectors received new investment and capital expansion during the first nine months.

In its report on foreign investment attraction in the first nine months of 2024, the Foreign Investment Agency (FIA) once again emphasized that many large projects in the semiconductor, energy (battery, photovoltaic cell, silicon ingot) manufacturing, component manufacturing, electronic products, and high value-added products sectors received new investment and expanded capital during the nine months.

Amkor Technology Vietnam factory in Yen Phong II-C Industrial Park. (Source: Dau Tu Newspaper)

Attracting FDI is positive and promising.

The more positive trend in attracting foreign direct investment (FDI) is becoming increasingly evident, as data from the Foreign Investment Agency ( Ministry of Planning and Investment ) shows that in the first nine months, the total registered foreign investment capital reached over US$24.78 billion, an increase of 11.6% compared to the same period in 2023.

In September 2024 alone, the figure was over $4.26 billion, accounting for 17.2% of the total foreign investment registered in Vietnam during the first nine months. This is quite impressive given the slowdown in global investment flows due to the impact of global geopolitical instability and the absence of large-scale projects.

It's easy to understand why the September figures were so positive. This was the time when many localities, such as Bac Ninh, Binh Duong , and Dong Nai, officially announced their provincial planning, combined with investment promotion activities. At these events, many projects received new and expanded investment certificates. Therefore, the total registered investment capital, or even just the additional investment capital, reached its highest level since the beginning of the year.

According to the Foreign Investment Agency, in September 2024, there were 3 projects with large capital adjustments, contributing to a total increase in investment capital of over US$7.64 billion in the first nine months, a 48.1% increase compared to the same period last year.

The largest of these three projects is a capital increase of $998 million, bringing the total investment to over $1.066 billion in Bac Ninh. This is a real estate project and the second billion-dollar project to arrive in Vietnam this year, alongside the $1.07 billion capital increase by semiconductor manufacturer Amkor.

In addition to the above project, in September 2024, Luxcase Precision Technology Company also received approval from Nghe An province to increase its capital by an additional $299 million, raising the total investment of the project to $473 million. Meanwhile, Advance Tire Vietnam Company in Tien Giang also increased its capital by more than $227 million, bringing the total investment of the project to over $615 million. Notably, Luxcase's project, which only received its investment certificate earlier this year with an initial investment of $24 million, has already increased its capital twice to reach nearly half a billion USD.

"Attracting foreign investment is a bright spot in Vietnam's economy," Deputy Minister of Planning and Investment Tran Quoc Phuong stated at a recent plenary session of the National Assembly's Economic Committee.

This was reaffirmed in the government's report recently submitted to the National Assembly Standing Committee. Not only did registered capital increase quite positively, but disbursed capital did as well. In the first nine months, realized foreign investment reached US$17.3 billion, an increase of 8.9% compared to the same period in 2023.

Aiming for $39-40 billion.

Beyond just the numbers, Vietnam's "bright spot" in attracting foreign investment lies in projects in pioneering industrial sectors. This means the quality of foreign investment flows is steadily improving.

In its report on foreign investment attraction in the first nine months of 2024, the Foreign Investment Agency once again emphasized that many large projects in the semiconductor, energy (battery production, photovoltaic cells, silicon ingots), component manufacturing, electronic products, and high value-added products sectors received new investments and expanded capital during the nine months.

Besides Amkor's capital increase project, a number of other projects in this field can also be mentioned. For example, the Foxconn Group's FCPV Bac Ninh Factory Project, with an investment of $383.3 million; the Goertek Nam Son - Hap Linh Factory for manufacturing electronic products, network equipment and multimedia audio products, with an investment of $280 million; the Victory Giant Vietnam high-precision printed circuit board (PCB) project, with an investment of $260 million…

Recent developments also indicate that many technology corporations are continuing to show interest in investing in Vietnam. One notable piece of information is the presence of numerous leading global technology corporations, such as NVIDIA, Qualcomm, Intel, AMD, Samsung, Meta… at the Vietnam Innovation Day 2024.

At this event, corporate leaders pledged to invest in and support Vietnam's development in the semiconductor, artificial intelligence (AI), and innovation sectors. According to Raymond Teh, Senior Global Vice President of NVIDIA, NVIDIA will help accelerate innovation in Vietnam's industries.

Meanwhile, Nick Clegg, President of Global External Affairs at Meta Group, stated that Meta will expand production of its latest mixed reality devices in Vietnam by 2025. This is expected to create approximately 1,000 jobs in Vietnam.

Previously, Samsung Group also planned to invest another $1.8 billion in an LED display manufacturing plant in Bac Ninh.

When these plans are realized, a large influx of capital will flow into Vietnam. According to a report by the Ministry of Planning and Investment, the total registered foreign investment in Vietnam this year is expected to reach a level similar to last year, around 39-40 billion USD. Not only will the quantity improve, but the quality of this capital flow will also be enhanced, contributing to the improvement of the economy.

According to reports, after a period of operation, Amkor recently exported its first shipment. Meanwhile, Foxconn is also accelerating the production of iPads and Macbooks at its factory in Bac Giang.

In a recent report submitted to the Ministry of Natural Resources and Environment, Foxconn stated that some assembly lines for these two Apple products have been completed. Therefore, it is highly likely that once environmental procedures are finalized, the factories will begin production.

Currently, Vietnam's goal remains focused on attracting large-scale, high-tech foreign investment projects in processing, manufacturing, electronics, semiconductor, and hydrogen industries. This is considered one of the new driving forces of the economy.

Source: https://baoquocte.vn/nhieu-du-an-lon-o-cac-linh-vuc-ban-dan-nang-luong-duoc-dau-tu-moi-va-mo-rong-von-trong-9-thang-289424.html