Vietnam – A Bright Spot of Industrial FDI in 2021

Vietnam – A Bright Spot of Industrial FDI in 2021

Economists forecast that Vietnam may attract about US$30 billion of foreign direct investment (FDI) in 2021, posting a year-on-year rise of 2%, showcasing positive signs in FDI attraction despite the complexities of COVID-19.

According to the Ministry of Planning and Investment, foreign investors channeled US$26.5 billion into Vietnam in the first eleven months of 2021, a slight rise of 0.1% compared to the same period last year, with a number of multi-million US$ projects.

Kraft Vina invested in a US$611 million kraft factory project in Vinh Phuc

The largest project to be registered in 2021 in Northern Vietnam is located in Vinh Phuc. Thai company SCG Packaging and Japan's Rengo Company jointly invested US$611.4 million in a kraft and packaging paper factory, which is expected to produce 800,000 tons of products a year.

Granted Investment Registration Certificate in July 2021, the project holds more than 60 percent area of Binh Xuyen Industrial Park and has brought Vinh Phuc to the top 3 leading localities in attracting new FDI projects in the processing and manufacturing sector in 2021.

LG Display to raise its investment in Hai Phong by over US$2 billion

South Korea’s electronic giant LG has increased its investment capital in the Northern port city of Hai Phong by US$750 million in February and by US$1.4 billion in August. The additional investment has increased the LG Display investment in Vietnam to US$4.65 billion.

The investment will boost the company's OLED display output in its Hai Phong factory, located in Trang Due Industrial Park, from 13 million to 14 million units per month, from the current 9.6 million to 10.1 million units per month.

Bac Giang granted 4 investment licenses, valued at US$560 million on January 15, 2021

Bac Giang, a newly emerged electronics hub in Northern Vietnam, has also seen major investment projects in industrial parks.

On January 15, the local authority granted an investment license to Foxconn for a project worth US$270 million to produce Apple’s Macbooks and Ipads in Quang Chau Industrial Park. The project, implemented via Fukang Technology Company, will have an annual capacity of 8 million units and has brought Foxconn’s total investment in Vietnam to US$1.5 billion.

The same day, Bac Giang authority also awarded investment registration certificates to other three projects, including JA Solar PV Viet Nam photoelectric cells project of JA Solar Investment Limited (Hong Kong) in Quang Chau Industrial Park, Risesun New Material Vietnam project, and Kodi New Material Vietnam project of Risesun Investment Pte. Ltd in Hoa Phu Industrial Park.

Amkor Technology selected Bac Ninh for factory expansion

The electronics cluster Bac Ninh also witnessed a new player in November. The US semiconductor provider, Amkor Technology, will invest US$1.6 billion over the 2021-2135 period to develop a manufacturing, testing, and assembling plant on a site of 23 ha in Yen Phong II-C Industrial Park.

Until 2025, US$520 million will be disbursed. The company will focus on the production, assembly and testing of semiconductor materials, including the Advanced System in Package, for the world's leading semiconductor and electronic manufacturing companies. The plant is expected to be operational by the end of 2023.

JinkoSolar Hongkong invested in US$498 million photovoltaic cell technology project in Quang Ninh

On March 31, Jinko Solar Hongkong Ltd., one of the largest manufacturers of solar panels in the world, received the investment and business registration certificates for its US$498 million solar photovoltaic cell factory in Vietnam.

Jinko Solar PV Vietnam will be constructed on a 32-ha plot in Song Khoai Industrial Park in Quang Yen Economic Zone, Quang Ninh. It is projected to create employment for 2,244 local employees.

Da Nang licensed United States Enterprises to build a US$110-million semiconductor plant

In January 2021, the Da Nang Hi-tech Park licensed the United States Enterprises to set up a $110-million semiconductor manufacturing plant.

The plant will make crystal silicon blocks, assemblies made of silicon, ceramic, quartz, sapphire stone, glass, metal, nonmetals, plastic polymers, and other semiconductor materials for semiconductor and electronics machinery and equipment.

It will be the park’s second-largest foreign project. The plant will be built in two phases, with construction expected to complete in 2023.

KURZ to invest in a US$40 million project in Binh Dinh

KURZ Group is the worldwide supplier of hot stamping technologies, with headquarter in Germany. The corporation will develop a coating and thin-film technology factory in Becamex Vietnam-Singapore Industrial Park (VSIP) Binh Dinh with a total registered capital of US$40 million, on an area of ​​12 ha.

The project is expected to be completed and put into operation in Q3/2023. Once completed, the project will have a capacity of 15 million sqm per year of film, decorative decal, and hot stamping foil, as well as related tools and application machines and plastic parts. In the future, the project will continue to expand its development scale with a total capital of up to US$100 million.

The group was granted the investment registration certificate by the Binh Dinh People's Committee on November 8, 2021. This event will open up a great opportunity to attract investors from Germany as well as other European countries and partners of KURZ Group around the world to Binh Dinh province in the future.

LEGO to build a US$1 billion factory in Binh Duong

On December 8, 2021, the Danish toy production company LEGO Group signed a memorandum of understanding on cooperation with the Vietnam-Singapore Industrial Park (VSIP) to build the new factory in Binh Duong. This is the first-ever carbon neutral factory of the LEGO Group in the world.

The project has a total investment of more than US$1 billion. It is expected to be deployed in the second half of 2022 and start operation in 2024. The investment is inclusive of solar energy generation and is expected to generate 4,000 jobs over the next 15 years. The firm has committed to planting 50,000 trees in Vietnam to reimburse the flora that was eliminated during construction.

This will be LEGO’s sixth factory in the world and second in Asia in an attempt to help Lego expand its global supply chain network. This is also the project with the largest investment capital by a Danish enterprise in Vietnam. This shows Denmark's confidence and optimism in Vietnam’s investment environment and in the future of the important Denmark-Vietnam partnership.

Long An licensed US$3 billion LNG power plant

The southern province of Long An licensed a 3,000-MW liquefied natural gas power plant to be built by South Korea’s GS Energy and the fund management company VinaCapital.

It will be built at the Long An Southeast Asia Industrial Park on a 90-hectare area, including two combined-cycle power plants, Long An I and II. Long An I will go on stream in December 2025, and Long An II, a year later.

The Long An I and II power plant projects have been approved since 2016, using imported coal fuel. However, the use of coal for power generation is not approved by local people and authorities due to concerns about environmental pollution. The People's Committee of Long An province has then proposed to adjust the Long An I and II project from using coal fuel to liquefied natural gas fuel.

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