Many FDI enterprises expand production in Vietnam

According to the Deputy Minister of Planning and Investment, 67% of European enterprises have an upbeat assessment of Vietnam’s business environment prospect. And there are 47% of Japanese enterprises havinge plans to expand production and business in Vietnam.

According to a Ministry of Planning and Investment report, in the first nine months of this year, the country had 34,141 valid projects with a total registered capital of 403.19 billion USD. Realized capital is estimated at 245.14 billion USD, equaling 60.8% of total investment capital. Ms. Nguyen Thi Bich Ngoc, Deputy Minister of Planning and Investment, affirmed that the foreign-invested economic sector has actively contributed to the growth of the budget, increased the value of export turnover, created jobs, and increased workers’ income.

Assessing the difficulty caused by Covid-19 is only temporary. Many FDI enterprises still promote investment and pour more capital.

Nestlé, for example, announced an investment of $132 million over the next two years to build a new factory in Dong Nai. “We consider it a long-term vision. Vietnam is a regional and global production center,” said Binu Jacob, General Director of Nestlé Vietnam, at the talk “Covid-19 and FDI: partners’“ dynamics and prospects” on the afternoon of September 27.

Not denying the difficulties in increasing production costs when implementing three-on-site model on the spot, breaking the supply chain before strict epidemic prevention measures, but Nestlé representatives said this is only a short-term situation. Vietnam is now recognized as the leading production base of this group in the world. The new investment will help businesses increase production and create new products to serve Asian and Oceania markets.

“The factory in Dong Nai will become the largest coffee exporter in the world,” said Mr. Binu Jacob.

Mr. Choi Joo Ho, General Director of Samsung Vietnam complex, also affirmed that the firm’s investment strategyof the enterprise has not changed.

“We had received support from the Government and localities when Covid-19 broke out for the fourth time. The implementation of 3 on-site has helped prevent the factory from havingnot to close. Korean experts are also facilitated to import situations quickly. Thanks to overcoming the crisis, Samsung has continuously invested…” Mr. Choi said.

According to him, up to now, Samsung has disbursed all approved investment capital. The company also purchases production equipment for six factories and diversifies production items such as 5G and laptops in Vietnam.

Recently, Tetra Pak, a company from Sweden, also announced an additional investment of 5.8 million USD to expand its 140.3 million USD paper box factory in Binh Duong.

Faced with concerns about FDI inflows in Vietnam during Covid-19, ADB Country Director Andrew Jeffries confirmed that only some orders were shipped, and the information about businesses moving was incorrect.

“Vietnam remains an attractive destination for FDI and continues to benefit from a changing global supply chain, US-China trade tensions, and production disruptions in other regions,” he said.

(Source: vnexxpress)