Vietnam eyes FDI attraction opportunities | Company
Hanoi (VNA) – Many large companies have shown interest in Vietnam, and the country is examining its chances of hosting large-scale foreign direct investment (FDI) flows.
A delegation of 25 member companies from the Automotive Components Manufacturers Association of India (ACMA) paid a business trip to Vietnam to explore the country’s investment and business opportunities. The ACMA brings together 800 manufacturers of automotive parts and components that contribute over 85% of the Indian automotive industry’s turnover.
Yuvraj Kapuria, Chairman of YBLF – ACMA Member, said ACMA is willing to cooperate with Vietnamese auto industry enterprises to jointly explore new markets through all forms of cooperation.
Recently, Yerkin Tatishhev, founder and president of Kusto Group, also visited Vietnam after a three-year hiatus due to the COVID-19 pandemic. After a 10-day trip with numerous meetings with Vietnamese officials and businessmen, Tatishhev plans to expand his investments in Vietnam, having invested more than $1 billion in 10 projects in Vietnam over the past 15 last years. Kusto Group’s two fields of interest are social housing and infrastructure projects.
Kusto Group is likely to invest up to hundreds of millions of dollars in Vietnam in the near future if the projects meet the group’s criteria and business philosophy.
The southern province of Binh Duong was among the places visited by Tatishhev to seek investment opportunities. A few days ago, Robert Wu, Chairman and CEO of Sharp Corporation (Japan), also paid a visit to this locality.
Wu said his company will continue to expand production and commercial facilities in the southern industrial hub. He noted that Vietnam’s economy is expected to accelerate after the pandemic, while the Vietnamese government is also giving more incentives to foreign companies.
SK Group, a Republic of Korea (RoK) company – has even bigger ambitions in the Vietnamese market.
In an online chat with Minister of Planning and Investment Nguyen Chi Dung and Minister of Industry and Commerce Nguyen Hong Dien in mid-August, SK Group Chairman Chey Tae-won said said the group was considering conditions for investing in hydrogen projects in the Mekong Delta and high-tech projects using clean energy in Vietnam.
As the second largest company in the Republic of Korea, SK Group has signed many significant investment deals in Vietnam, including paying USD 470 million to buy a 9.4% stake in Masan Group, USD 1 billion to obtain a 6% stake in Vingroup and 340 million USD in TheCrownX. According to some sources, it is highly likely that SK will inject capital into the Pharmacity pharmacy network in Vietnam.
Deputy Director of the Foreign Investment Department of the Ministry of Planning and Investment, Nguyen Anh Tuan, attributed the results to Vietnam’s good control of the COVID-19 pandemic, its advantages in terms of human resources. and internal market, and the determination to improve investment. and business environment.
However, Minister of Planning and Investment Nguyen Chi Dung said Vietnam should do more to exploit FDI opportunities, including designing an appropriate response policy and preparing land, resources, personnel and infrastructure./.