Dong Nai Province draws increasing investment in support industries

06:00 | 03/07/2021 Industry

(VEN) - Foreign-invested companies have increased their investment in support industries in the southern province of Dong Nai.

More FDI projects

According to the Dong Nai Industrial Zones Authority, Dong Nai has attracted 66 foreign direct investment (FDI) projects worth over US$680 million since the beginning of 2021, almost reaching its annual target of US$700 million.

dong nai province draws increasing investment in support industries

Foreign investment in the province is mostly found in support industries, machinery and equipment, and deep processing of agricultural products. The province is currently home to nearly 1,400 FDI projects from 41 countries and territories with total capital of US$27 billion.

The Republic of Korea (RoK), Japan, Chinese Taipei and European nations are among the countries and territories with large investments in support industries in Dong Nai Province, with a main focus on electronics, components, spare parts, textile fibers and fabrics.

Japanese Consul General in Ho Chi Minh City Watanabe Nobuhiro said that in the past four years, Japanese companies have invested in new projects and expanded investment in existing projects in Dong Nai Province.

Currently, Japan ranks third among the countries and territories investing in the province with total registered capital of nearly US$5 billion, focusing on production of machinery components and equipment for domestic sale and export. On average, Japanese investment in Dong Nai Province has increased by US$200-250 million per year.

Since the beginning of the year, most newly licensed FDI projects have focused on support industries. Among the companies that have increased their capital are Schaeffler Vietnam Company Limited (an increase of US$50 million) and Chang Shin Vietnam Company Limited (an increase of US$87 million).

Georg F.W. Schaeffler, chairman of the Schaeffler Group, said the group decided to pour more capital into Dong Nai to build an additional factory and install more automatic production lines applying advanced technologies in order to produce ball-bearings to meet the needs of the international market. The group plans to continue expanding investment in the province.

Deeper participation in supply chains

FDI companies investing in support industries in the province have linkages with multinational corporations, enhancing the market prospects of their products. For example, Hansol Electronics Vietnam Hochiminhcity Co., Ltd. and Platel Vina Co., Ltd. produce electronic components for the Samsung Group; Meggitt Vietnam Co., Ltd. manufactures aircraft engines and engine parts; and Hyosung Dong Nai Co., Ltd. supplies yarn products.

dong nai province draws increasing investment in support industries

Kim Byunggi, general director of the Hansol Electronics Vietnam Hochiminhcity Co., Ltd., said the company invested in a production factory in the Amata Industrial Park to supply Samsung with electronic components. After the Samsung Group recently asked the company to increase its capacity to meet larger orders, it invested in a US$100 million project to build an additional factory and install production lines with capacity of 10.8 million products per year.

The Covid-19 pandemic has affected industrial production in many countries around the world, disrupting global supply chains of raw materials for production. With multinational corporations seeking new supply chains, Vietnam features prominently on their radar thanks to its effective Covid-19 prevention and control measures, political stability and relatively skilled employees.

Commercial Counselor at the RoK Consulate General in Ho Chi Minh City Ahn Seong Ho said that in the past five years, RoK businesses have expanded their investments in Dong Nai’s industrial sector. Many of them supply products to large corporations and are an important part of global supply chains.

FDI companies view Dong Nai Province as an attractive investment destination. Large-scale support industry projects applying advanced technologies and creating high added value are particularly welcome.

Viet Anh