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Western Europe and North America "turn the wheel" want to invest in chip production, renewable energy in Vietnam
Date: 8/28/2023 8:46:14 AM
Recently, Vietnam is welcoming the shift of new FDI inflows from Western Europe and North America into the renewable energy and chip manufacturing industries.

 The "turn the car" upstream

If in the past, Western investors only wanted to pour capital into China like a "golden egg", now, the situation has completely changed.

Western capitalists, under the pressure of the US-China trade war, have been forced to rethink the orientation of expanding production in China and the inevitable trend of shifting FDI to safer economies. And Vietnam has become the best choice at this time.

Capital flows from Western Europe, North America, China...moved to Vietnam

Capital flows from Western Europe, North America, China...moved to Vietnam

Accordingly, there is a relative movement of investors from Western Europe such as Germany, the Netherlands, France, and Spain into renewable energy industries. Along with that, there is also the appearance of more and more investors from North America.

Explaining this reason, Mr. Do Van Su - Deputy Director of the Foreign Investment Department (Ministry of Planning and Investment) in a recent real estate seminar expressed: In the top 5 largest investment locations Most of the investors in Vietnam are investors in Northeast Asia and Singapore. However, recently, there has been a relative movement of investment capital flows from Western European investors such as Germany, the Netherlands, France, and Spain into renewable energy industries.

Besides, there is also an increasing appearance of North American investors, especially US investors in Vietnam. Recently, the American Semiconductor Industry Association and many businesses have come to Vietnam to explore the investment environment as a place to move chip production" , a representative of the Foreign Investment Agency informed.

The reason is that in the past 2 years, since the Vietnamese Government committed to achieve net zero emissions by 2050, many international energy corporations have come to Vietnam to seek investment opportunities in the renewable energy industry. create. Accompanying these corporations are a series of supply enterprises in the field of processing and manufacturing.

The attractiveness of the renewable energy sector also contributed significantly to the shift of foreign investment capital flows, originating from Japanese investors, followed by Korean investors, then European investors. Europe.

Before the above information, Mr. Bruno Jaspaert, General Director of DEEP C Industrial Complex, acknowledged that there will be a large wave of investment in the energy sector in Vietnam.

" In the next 5 years, there may be a shortage of electricity for production as more and more industrial investors come to Vietnam. Vietnam needs to build energy infrastructure from today . Many foreign investors are very interested in using renewable energy to protect the environment, and Vietnam has great room to do that, " emphasized Mr. Bruno.

Sharing the same view, Mr. Dao Xuan Duc, Chairman of the Industrial Park Business Association of Ho Chi Minh City. Ho Chi Minh City (HBA) shared, the current issue is that many foreign investors are interested in investing in industrial zones in Ho Chi Minh City, especially in the field of renewable energy.

Continue to improve the investment environment to attract international investors

Economic experts note that foreign capital into Vietnam is tending to focus on industries with high gray matter content such as software industry, electronics and information technology, pharmaceuticals, and precision mechanics instead of just processed and assembled as original.

As seen, the semiconductor field has recently emerged with big investors Intel, Samsung... Advantages of rare earth reserves, potential human resources, strategies to promote investment attraction and development of the selling industry helping Vietnam become an increasingly central and important link in the supply chain.

The statistics of the first 8 months of 2023 show that foreign investment capital into Vietnam reached more than 18.1 billion USD, up 8.2% over the same period last year, showing that the attraction of FDI inflows has started. color returns, expecting a breakthrough in the last months of the year. However, increasing again is also a challenge when investment flows are always changing, how to continue to improve the business environment for this growth to be sustainable.

Especially in the context of selective foreign investment attraction and cooperation, taking quality, efficiency, technology and environmental protection is a mandatory requirement.

Sharing about the prospect of attracting FDI in Vietnam, Ms. Dorsati Madani - World Bank Senior Economist in Vietnam affirmed: During the past long time, Vietnam has been recognized as a top destination. attractive private.

Although there are many advantages in attracting the wave of FDI, however, foreign businesses still believe that Vietnam needs to continue to improve the investment environment to increase competitiveness with other countries in the region. Because not only Vietnam but also India, Indonesia or Thailand... are also countries with many strengths in catching up on capital flows.

Mr. Paul Wee, Chief Financial Officer, BW Industrial Company suggested solutions, in order to strongly attract international investors, Vietnam has 3 factors to note to improve.

One is the infrastructure problem, Vietnam needs more expressways. However, investors not only want to see the roads under construction, but also want to see the commitment of on-time completion from the Government. Because when key infrastructure projects are guaranteed on schedule, better effects will be created.

The second is the guarantee of power supply.

Third is the issue of education and training. Currently, Vietnam is promoting to attract many investors related to the high-tech sector. However, for these investors to come, Vietnam must ensure highly qualified resources in the localities to meet the exploitation needs of enterprises. Therefore, Vietnam needs to promote education and training to increase the quality of human resources.

In addition, Vietnam needs more credit programs to encourage investors. When a country has a credit program and mechanism to create favorable conditions for business development, it will certainly attract investors.

According to the Ministry of Planning and Investment, so far, 143 countries and territories have invested in Vietnam, especially this Southeast Asian country has even entered the top 30 countries attracting the most foreign capital. in the world, surpassing Korea, Denmark, Chile ... in the ranking of attracting FDI globally in 2022.

General statistics show that the number, investment capital, investment wave from a number of large countries such as the US, Europe and in Asia such as Singapore, Japan and Korea in the field of software industry, certainly underpins substantial qualitative changes in FDI attraction to Vietnam.

(Source:Công Thương)
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