Vietnam aims to draw stronger investment from US and Europe

Sunday, 03/07/2022 22:47
The country is projected to attract greater investment from the United States, Europe, and other major global enterprises under a recently approved strategy on foreign investment co-operation, reported VOV News.
Photo for illustration. (Source: VOV) 

The strategy for the 2021 to 2030 period, signed off by Permanent Deputy Prime Minister Pham Binh Minh, aims to raise capital flows from countries and territories in certain regions to over 70% of total foreign investment in the nation between 2021 and 2025 before rising to 75% during the 2026 to 2030 period.

The targeted partners include the Republic of Korea (RoK), Japan, Singapore, China, Taiwan (China), Malaysia, Thailand, India, Indonesia, and the Philippines in Asia. In addition to France, Germany, Italy, Spain, Russia, and the UK in Europe, as well as the US.

This strategy also seeks to raise the number of multinationals listed on the Fortune Global 500 operating in Vietnam by 50%.

According to Vietnam Investment Review, the Foreign Investment Agency under the Ministry of Planning and Investment has held a working session with Intel. Details from this meeting have yet to be revealed, although discussions likely centred around the next investment stage of the US-based firm in the Vietnamese market.

During a trip made to the US in mid-May, Prime Minister Pham Minh Chinh met with Keyvan Esfarjani, executive vice president for manufacturing, supply chain and operations at Intel, who highly valued the nation’s role in his group’s production chain. As a result, he views the country as having high potential for technology businesses to continue expanding operations.

 Vietnam aims to raise capital flows from countries and territories in certain regions to over 70% of total foreign investment

Only 10 days after that meeting, PM Chinh went on to receive Patrick Gelsinger, CEO of Intel, in Hanoi. The PM asked Intel to continue its investment, with Gelsinger replying that his firm had decided to scale up investment many times higher than the current level.

The latest investment made by Intel could mark the start of a new chapter for Vietnamese foreign investment attraction, with Intel pouring US$1 billion into the country over the past decade, with several tech giants flocking to Vietnam since then.

Now, with commitments made to multiply investment, Intel is likely to become one of the first foreign investors to benefit from special preferential treatment given by the Government to large-scale and high-tech projects, according to the newspaper.

During the recent launch of an annual FDI report, Nguyen Mai, chairman of the Vietnam Association of Foreign Invested Enterprises, pointed out that investment from Europe and the US remains modest, while Japan, the RoK, Singapore, and Taiwan (China) are still the primary investors in the country.

Although the US is one of the nation’s top trade partners, it only ranks 11th among foreign investors, with a similar level also being seen in investment from the EU, he noted.

Phan Huu Thang, former director of the Foreign Investment Agency, explained that Vietnam is in close proximity with East Asian countries, which is favourable for trading. In additional, Asian financiers are also more familiar with local customs and investment environment, while the country has signed several free trade agreements with these partners.

It is widely believed that opportunities have never been so big for the nation to lure greater investment from the US and the EU, which can be proved through American and European businesses’ affirmation of their special interest in the country during Vietnamese leaders’ recent visits to these destinations.

Moving forward, Intel plans to increase investment in the Vietnamese market, whilst the recent “green” investment worth more than US$1.3 billion by Denmark’s LEGO promises a bright future for further investment from the US and the EU.

Thaco subsidiary exports car seat covers to RoK

Auto part producer Autocom, a subsidiary of Vietnamese automaker THACO, sets to export 107,000 seat covers for Kia Bongo car model in 2022, up 18.5% from the previous year, reported Vietnam News Agency.

  (Photo: Bnews)

Last month, it exported nearly 8,000 Kia Bongo seat covers to Cellmech International Vina in the Republic of Korea.

This year, Autocom expects to supply many other auto accessories products to the RoK-based company, including gearshift covers and seat covers of Kia Rio, Hyundai i30 and Hyundai AX models.

It is an emerging auto part manufacturer in Vietnam capable of producing car seats and various accessories, such as seat and gearshift covers, car neck pillows, backrest, and floor mats.

Its products have been shipped to foreign markets, including ASEAN member states.

Vietnam-Korea Industrial Business Trade Week slated for next week

The event will draw participants from 17 Korean industrial manufacturers and suppliers. (Photo: Yonhap/VNA) 

A trade promotion event connecting the Republic of Korea’s fundamental industrial manufacturing enterprises (PPURI Industry) and Vietnamese importers will be held online during July 4-8 by the Korea Trade and Investment Promotion Agency (KOTRA), reported Vietnam News Agency.

The event will draw 17 Korean manufacturers and suppliers focusing on machine tools and accessories, industrial robots, industrial cleaning machines, building materials, chemistry, automotive parts and industrial supplies for railway and shipping industries. These are high-quality products that have been widely used in Korea and exported to many countries around the world.

Nearly 60 online meetings have been arranged and confirmed by KOTRA for the trade week.

This event is expected to open up new cooperation opportunities for Vietnamese and Korean businesses in the field of industrial production.

Vietjet launches direct routes to Japan’s Fukuoka, Nagoya

A ceremony welcoming the Vietjet flights in Japan (Photo: 

Vietjet has launched direct routes between Hanoi and Japan’s Nagoya and Fukuoka, reported Vietnam News Agency.

The route connecting Hanoi to Fukuoka is operated three return flights on Tuesdays, Thursdays and Saturdays every week, the Hanoi - Nagoya one is operated four return flights per week on Mondays, Wednesdays, Fridays and Sundays to serve people and tourists with almost 5 hours flying per leg.

After the routes connecting Ho Chi Minh City, Hanoi to Tokyo and Osaka, new routes to Nagoya and Fukuoka have offered more options for passengers when flying with Vietjet between Vietnam and Japan with saving cost, flexible flight schedules.

Japan is one of the favorite destinations for Vietnamese tourists with beautiful scenery and unique culture. Fukuoka, in particular, which sits on the northern shore of Japan’s Kyushu Island, is known for many great beaches, ancient temples, the variety of nature as well as the rich culture and historical legacy of Kyushu. Meanwhile, Nagoya is Japan’s third most populous urban area with developed industrial economy and is well-known for its signature landmarks including Nagoya castle and Atsuta shrine.

Passengers always have the opportunities to buy attractive price tickets through discounts and promotions campaign, “fly now - pay later” programme with an easy online process via website, Vietjet Air mobile app or Facebook (section “Booking”). Especially, passengers buy tickets and pay through Vietjet SkyClub to get free payment fees.

Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam’s largest private carrier, the airline was awarded the highest ranking for safety with 7 stars in 2018 and 2019 by the world’s only safety and product rating website and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in 2018 and 2019. The airline has also been named as Best Low-Cost Carrier by renowned organizations such as Skytrax, CAPA, Airline Ratings, and many others./.