FOREIGN INVESTORS FLOCKING TO SOUTHERN REGION

Foreign investors are actively calling on southern localities in the final months of 2024 to explore investment opportunities. On November 7, over 40 German businesses arrived in the southern province of Dong Nai to evaluate investment prospects in the area.

Alexander Ziehe, chairman of the German Business Association in Vietnam said, “I am deeply impressed with the open and professional environment Dong Nai is fostering for the foreign business community, including German enterprises.”

In the past year, the province’s leadership has hosted executive representatives from different business associations of South Korea, Japan, or India to explore local investment environment.

Many major corporations have even conducted site visits and make project proposals.

For instance, late last year South Korea’s Harbor Star Engineering Global expressed interest in developing a project encompassing urban areas, commerce, services, entertainment, and logistics around Long Thanh International Airport area.

Japan’s retail giant AEON Mall is advancing plans to invest in a shopping centre in Bien Hoa city, covering nearly 12 ha with a total investment reaching $250 million.

Additionally, American tech firm Coherent has proposed three high-tech projects focusing on advanced optics, measurement, and semiconductor manufacturing.

Likewise, since the outset of the year, many investors have met Binh Duong’s leaders to propose projects or announce plans for investment expansion in the area.

On November 7, Yeh Ming Yuh, general director of Polytex Far Eastern Vietnam Co., Ltd., announced plans to expand investments in the province, raising their total capital to $1.54 billion.

The Taiwan-invested textile firm started investing in Binh Duong in 2015 with an initial investment of $274.2 million and increased the scale to $1.37 billion in 2021.

Major corporations have also expressed interest in the province.

For instance, US private equity firm Warburg Pincus has proposed an investment in a cross-border e-commerce centre in the province, while Denmark’s A.P. Moller Maersk aims to establish a large-scale logistics centre.

In the high-tech sector, Japan’s Tokyu Corporation is researching locations for semiconductor technology investments in the province.

Among southern localities, Ho Chi Minh City has garnered significant attention from major high-tech investors.

US tech giant NVIDIA has sent multiple delegations to survey locations for establishing a centre for research, development, and training in AI.

The company is also seeking sites to shift part of its GPU (graphics processing unit) production for super computers.

Other American corporations have also submitted investment proposals to Ho Chi Minh City People’s Committee.

For instance, early this month Smart Tech Group has proposed building a battery manufacturing plant for energy storage, with an investment ranging from $340 to $850 million. The investors have requested the city’s guidance and support in completing procedures and identifying sites for project implementation in 2025, or as soon as land is allocated.

Meanwhile, late last month Evolution Group (under Warburg Pincus) has proposed investing in a data centre with a scale of 36MW valued at about $305 million at the city’s high-tech park, SHTP.

According to statistics released by General Statistics Office in early November, as of October 31 total registered foreign direct investment (FDI) in Vietnam reached $27.26 billion, up 1.9 per cent on-year.

The realised FDI volume in Vietnam during the period is estimated at $19.58 billion, marking an 8.8 per cent increase compared to the same period in 2023.

Source: VIR