New strategy targets investments from major groups

09:42 | 22/07/2019 Economy

(VEN) - Although the Ministry of Planning and Investment is still in the process of finalizing a new-generation foreign investment attraction strategy, a growing number of major groups are seeking opportunities to invest in Vietnam’s high technology.

new strategy targets investments from major groups

Vietnam has attracted investment from 100 of the world’s top 500 businesses. However, this result is said to be incommensurate with Vietnam’s real potential. Therefore, one of the top priorities of the new-generation foreign direct investment (FDI) strategy is attracting investment from major groups. At a recent meeting with Vietnamese Prime Minister Nguyen Xuan Phuc, the leaders of South Korean electronics giant Samsung, and CapitaLand, one of Asia’s largest real estate companies, headquartered in Singapore, shared their major investment plans in Vietnam. These include the construction of a Samsung research and development (R&D) center in Vietnam. Samsung Vietnam General Director Choi Joo Ho said the company is implementing necessary procedures to build this center in Hanoi. This is expected to be the largest R&D center in Southeast Asia, with 3,000 employees, Choi Joo Ho added.

Economists believe successful attraction of R&D investment projects will pave the way for high-tech FDI flows to Vietnam.

So far, Samsung has invested nearly US$17.4 billion in Vietnam. Once an investment certificate is granted for the Vung Ang 3 Thermal Power Plant project, this amount will increase to US$20 billion. “Samsung has invited a major semiconductor business of the Republic of Korea to invest about US$500 million in Bac Giang Province,” Choi Joo Ho said.

CapitaLand Chairman Ng Kee Choe said the company would add high technology to its investment projects in Vietnam. Specifically, CapitaLand will invest in smart city projects and consider investment in housing for low-income people - a field where Vietnam wants to attract FDI in the era of Industry 4.0.

Many other major groups also want to invest in or expand their operations in Vietnam. For example, Formosa has increased investment in the steel making complex in Ha Tinh Province to US$12.78 billion. The Mekong Corporation Europe BV (MCE) of the Netherlands wants to invest about US$250 million in Binh Phuoc Province’s cashew sector. Meanwhile, Enterprise Energy and its partners are preparing to carry out a site survey for the 3,400MW Thang Long wind project offshore Ke Ga Cape in Binh Thuan Province. With total investment of nearly US$12 billion, this is expected to be one of the largest offshore wind power projects in the world. Renewable energy is also among the areas where Vietnam wants to attract FDI.

Attracting investment from major high-tech groups enables Vietnam to promote linkages and technology transfer

between FDI companies and domestic businesses, increasing their contributions to the Vietnamese economy.

Thu Phuong