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Foreign investment sees increase despite impact of COVID pandemic

Update: September, 29/2021 - 06:51

 

Nestlé Vietnam will invest US$132 million in building a new plant in southern Đồng Nai Province. Amid the pandemic, foreign investors’ new capital registered in Việt Nam reached $22.15 billion in the first nine months, marking an increase of 4.4 per cent from the same period last year. Photo courtesy of the firm

 HÀ NỘI – Despite negative impacts of the pandemic, the business community, including FDI enterprises, has shown solidarity, shared responsibility with the Government and local authorities, and supported the community in the fight against COVID-19, said Deputy Minister of Planning and Investment Nguyễn Thị Bích Ngọc.

They also made efforts in adapting to new situations, maintaining production, creating jobs for workers, and contributing to socio-economic development, she remarked at the Government Portal’s online conference on September 27.

Foreign investors’ new capital registered in Việt Nam reached US$22.15 billion in the first nine months of this year, marking an increase of 4.4 per cent from the same period last year.

Ngọc said: “The figures showed the Vietnamese Government’s special attention to investors and business climate improvement.”

There are 34,141 valid projects nationwide with a total registered capital of US$403.19 billion. Of which, realised capital is estimated at $245.14 billion, accounting for 60.8 per cent of total investment capital.

COVID-19 pandemic was having a very negative impact on the FDI sector, including attracting foreign investment. The 4th wave of the pandemic directly hit major industrial centres of the country such as HCM City, Bắc Giang, Bắc Ninh, Đồng Nai and Bình Dương, where many FDI enterprises are based, disrupting production supply chains.

At the conference, representatives of participating FDI firms said they believed in Viet Nam’s business climate and hoped the authorities would continue prioritising vaccinations for workers, opening the market for production recovery, and simplifying administrative procedures.

Choi Joo Ho, President of Samsung Vietnam, said: “Samsung will not change its investment strategy in Việt Nam.”

Ho confirmed Samsung would continue to expand production and invest in equipment in its six factories operating in the nation while upgrading and investing more in research and development to make Samsung Vietnam a major production base in the world. He added Samsung Vietnam was building a $220 million R&D centre in Hà Nội.

Binu Jacob, CEO of Nestlé Vietnam, said the group hdecided to invest $132 million in building a new plant in southern Đồng Nai Province over the next two years in a bid to become Vietnam Nestlé's production centre in Asia and Oceania.

The vice chairwoman of Đồng Nai People’s Committee Nguyễn Thị Hoàng said as of early September, 42 countries and territories had invested in the province with a registered capital of up to $32 billion, adding new investment capital increased by 25 per cent over the same period last year and reached 88 per cent of the year’s plan.

Hoàng said the province pledged the local authorities’ support for enterprises and their production recovery, adding Đồng Nai would further create a favourable environment for FDI firms to invest in the southern locality.

According to local media, foreign investors added additional investment to expand production in Việt Nam, showing their trust in the country’s prospects for economic recovery.

Tetra Pak of Sweden has confirmed that it would pump 5 million EUR or $5.86 million to expand its existing 120-million-EUR plant in Bình Dương Province.

The investment demonstrates the company’s trust in Việt Nam’s strong economic recovery after the pandemic, according to Managing Director and President at Tetra Pak Vietnam Eliseo Barcas.

In particular, the LG Display project in Hải Phòng has received additional investment twice this year, with $750 million in February and $1.4 billion in August.

Earlier this month, authorities in the northern province of Quảng Ninh presented an investment registration certificate to a $365.6 million project of Jinko Solar Vietnam Co. Ltd., an affiliate of the Jinko Solar Holding Co. Ltd. The firm channelled nearly $500 million into a project in the province in March.

Chief Representative of the Japan External Trade Organisation (JETRO) in Hà Nội Nakajima Takeo said Japanese firms are working to adapt and improve their production system in the new situation.

Meanwhile Alain Cany, chairman of the European Chamber of Commerce (EuroCham) in Việt Nam, said the European business community was determined to stand side by side with the Vietnamese Government in this tough time and believed that the Government would successfully bring COVID-19 under control as it did before.

As they have shown their determination to maintain operations in Viet Nam, most foreign investors hope that the Government will promptly devise a clear plan for reopening and economic recovery, or else current investment plans will be delayed and newcomers cannot enter the country to study investment possibilities.

In the first eight months, the total import-export value of the FDI sector surged 31.2 per cent to $297.43 billion. — VNS

 

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