Many experts say that Vietnam is in a favorable position to benefit from new waves of investment by chip companies that are trying to build stronger and better supply chains around the world.
Deputy Minister of Planning and Investment Tran Quoc Phuong said that in the first 2 months of 2024, attracting foreign investment in Vietnam has a very high rate of new capital and new projects, reaching 4.29 billion USD, an increase 38.6% over the same period. This is a very good sign and it is expected that this new capital will impact growth in 2024 as well as 2025. 2023 marks an exciting year for Vietnam in attracting investment in the industrial sector. Semiconductor. A series of the world’s leading names in this field are continuously pouring capital into Vietnam with projects up to billions of dollars. Many experts say that Vietnam is in a favorable position to benefit from new waves of investment by chip companies that are trying to build stronger, better supply chains around the world.
Vietnam continues to become an attractive destination for foreign investment
In the first 2 months of the year, total foreign investment (FDI) into Vietnam reached 4.29 billion USD, an increase of 38.6% over the same period in 2023. This is an unexpected result in the context of the global economy. facing many difficulties today.
According to the Ministry of Planning and Investment (MPI), as of February 20, 2024 (the date of closing the reporting data – PV), total foreign investment (FDI) in Vietnam reached 4.29 billion USD, an increase 38.6% over the same period in 2023 – this is an impressive increase in the context of the current difficult world economy. “We never thought of this number” – Deputy Minister of Planning and Investment Tran Quoc Phuong shared.
Mr. Vu Tuan Anh – Chairman of JCI Vietnam 2022 – emphasized: The Ministry of Planning and Investment itself was also surprised by this number, because in the current unstable conditions, economic experts were worried about applying the global minimum tax. can cause FDI capital into Vietnam (and many other countries) to decrease.
“This is a very good sign, because even though the global economy is declining and many uncertainties are taking place, Vietnam is still a safe destination, investment in Vietnam still brings excitement and profits. trust for foreign investors” – Mr. Vu Tuan Anh said.
According to Dr. Nguyen Duc Do – Deputy Director of the Institute of Financial Economics (Academy of Finance), Vietnam has many advantages to attract economic resources from the “leading cranes” of other countries, especially investors. The investor plans to do long-term business in Asia. Vietnam is considered a safe and effective investment destination in the region.
“Currently, Vietnam is attractive to foreign investors thanks to its stable political and macroeconomic environment and low labor costs. In particular, Vietnam has signed bilateral and multilateral Trade Agreements with many countries and regions” – Dr. Nguyen Duc Do emphasized.
According to the Foreign Investment Department (Ministry of Planning and Investment), in the first 2 months of 2024, there were 48 countries and territories investing in Vietnam, of which Singapore leads with a total investment capital of more than 2.08 billion USD. , accounting for 48.5% of total investment capital, more than 2.1 times higher than the same period in 2023, followed by Japan, China… What is worth mentioning is that not only does investment capital increase, but the capital disbursement rate is also very feasible, showing that Vietnam continues to be a safe and effective investment destination.
Economic expert Vu Dinh Anh also optimistically commented that in this context, the investment environment in Vietnam is much more attractive than many concerns. Attractive because in addition to traditional factors such as tax incentives, land, administrative procedures and advantages of cheap labor as well as opportunities to access domestic and foreign markets, there are also new advantages such as geographical location. and favorable economic position to welcome capital flows from China, high-tech industrial policies, semiconductors, green energy, digital economy and green economy… attract large investors associated with economic growth. domestic investor potential.
“Vietnam is proving its ability to become a global manufacturing center, but the problem is to maximize national benefits from that role” – Dr. Nguyen Dinh Anh said.
Explaining why the increase in global minimum tax has not affected FDI investment in Vietnam, Dr. Nguyen Dinh Anh said that that tax rate is the common level, so big investors pay more attention to factors that are higher than that common level. “In addition, the majority of new investors are still not subject to the global minimum tax” – Mr. Anh said.
According to Deputy Minister of Planning and Investment Tran Quoc Phuong, it is necessary to deploy 3 solutions to attract large, quality FDI capital, which are: Focus on improving infrastructure and land; Focus on training and building high-quality human resources; Focus on perfecting institutional work.
Large projects of foreign investors have large land use needs and high infrastructure requirements. Therefore, in the coming time we will focus on completing infrastructure connection projects. At the same time, immediately implement guiding documents on the Land Law… The newly promulgated mechanisms and policies will certainly make important contributions to promoting the attraction of investment projects in Vietnam. .
The time has come!
2023 marks an exciting year for Vietnam in attracting investment in the semiconductor industry. During the year, a series of the world’s leading names in this field continuously poured capital into Vietnam with projects worth up to billions of dollars.
Not only investing in production in Vietnam, the world’s leading technology corporations are planning to establish research and development (R&D) centers in Vietnam – a very important step in production to launching pad for modern high-tech products. For example, Marvell Circuit Design Group (USA) announced that it will soon establish a large-scale design center in Vietnam. It is expected that after three years, the staff size will increase by 50% compared to today.
The above projects are the clearest evidence that Vietnam is on the right track on the path to attracting high-quality FDI capital. Localities such as: Bac Giang, Bac Ninh, Thai Nguyen or City. Ho Chi Minh City is not only the leader in assembling electronic components but can also become the leading center in the industry.
At a meeting with Minister of Planning and Investment Nguyen Chi Dung in December 2023, President of the American Semiconductor Industry Association (SIA) John Neuffer assessed that many SIA companies have made worthwhile investments. Listed in Vietnam are Intel, Marvell, Synopsys, Qualcomm, Ampere, Infineon… Some businesses doubled their investment capital after many years of doing business in the country.
“These investments are testament to Vietnam’s key and growing role in the global semiconductor supply chain. This is when the country needs to join the global supply chain, becoming an important link in the semiconductor supply chain. Vietnam is in a favorable position to benefit from new investment waves from chip companies that are striving to build stronger, better supply chains around the world” – SIA Chairman affirmed.
Minister Nguyen Chi Dung informed that the country has actively prepared conditions to be ready to welcome and cooperate with businesses and investors in the semiconductor industry supply chain. Vietnam has completed the one-stop mechanism, built a project to develop human resources in the semiconductor industry to reach 30,000 semiconductor industry engineers by 2030, and established a National Innovation Center in Hoa Hi-Tech Park. Lac (NIC Hoa Lac) to be ready to receive investment projects in the semiconductor industry with the most preferential regimes.
GS. Nguyen Mai – Chairman of the Association of Foreign Investment Enterprises in Vietnam (VAFIE) realized that the scale of the global chip market by 2029 will increase to 1,400 billion USD, up from more than 600 billion USD in 2022. Because Therefore, the opportunity for Vietnam in this “giant cake” is very large. “Semiconductor technology is the story of the whole world. Developed countries are providing incentives to expand research and production for this industry. Vietnam does not have much money to invest, so it has to rely on attracting FDI capital to develop.”
In fact, the S-shaped country is one of the choices of the world’s leading chip investors. GS. Nguyen Mai said that the important thing now is to change the preferential approach to take advantage of this great opportunity. Vietnam and many developing countries often choose tax incentives to attract capital. However, with global minimum tax regulations, attracting FDI in the coming time will have to focus on financial incentives for costs and consumption in investment for businesses.
Preferential policy changes attract early investment like GS. Nguyen Mai assessed, “it will give Vietnam many opportunities to establish a semiconductor industry. From there, it creates a huge boost for the economy, increases added value, and creates a spillover not only in attracting foreign capital but also domestic capital to participate in this value chain.”
Source:
https://www.congluan.vn/dau-tu-nuoc-ngoai-vao-viet-nam-2024-thoi-co-da-den-post287823.html
