Vietnam to Receive $3.7 Billion in Investments from Three Foreign Companies

Three companies from South Korea, Germany, and Japan are set to invest a total of $3.7 billion into projects in Vietnam.

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Three Foreign Firms to Invest $3.7 billion in Vietnam
At the meeting betweeen Prime Minister Pham Minh Chinh and foreign investors. Photo: VGP

Minister of Planning and Investment Nguyen Chi Dung announced at a meeting in Hanoi on April 22 that a South Korean firm would be investing an impressive $1.6 billion in the areas of heavy industry and logistics. Additionally, a German investor had pledged $1.5 billion to fund a green production project utilizing renewable energy sources. To top it off, a Japanese company had also committed to investing around $600 million to manufacture medical equipment in Vietnam, as reported by VOV.

At the meeting, Gabor Fluit, Chairman of the European Chamber of Commerce in Vietnam (EuroCham), emphasized that, despite encountering various challenges, Vietnam is still a flourishing star in terms of business and investment.

He recommended that the government seek to introduce appropriate and competitive preferential policies aimed at attracting investment, especially ahead of the enforcement of the global minimum tax regulation slated for 2024.

He emphasized the importance of aligning administrative procedures and tax policies to foster trade growth within the framework of the EU-Vietnam Free Trade Agreement (EVFTA).

Takeo Nakajima, the Chief Representative of the Japan Trade and Promotion Organization (JETRO) Hanoi, has affirmed that Japanese businesses are eager to increase their investments in the Vietnamese market. According to a survey conducted by JETRO, 47% of the questioned businesses are planning to expand their operations within the next one to two years.

Three Foreign Firms to Invest $3.7 billion in Vietnam
Takeo Nakajima, Chief Representative of the Japan Trade and Promotion Organization (JETRO) Hanoi. Photo: VGP

Hong Sun, the Chairman of the Korean Business Association in Vietnam (Kocham), recently divulged that the Republic of Korea (RoK) Government and businesses have identified Vietnam as their premier cooperation partner. He went on to state that Korean investments in Vietnam are varied, ranging from production and manufacturing, to services, and from labour-intensive industries to high-tech industries.

Approximately 9,000 Korean companies have invested in Vietnam, creating jobs for approximately 700,000 locals. This influx of investment has had a positive impact on the Vietnamese economy and society as a whole.

Many Korean businesses operating in Vietnam, especially high-tech, financial, and energy firms, are strongly considering increasing their investment capital and making new investments, provided that the local investment environment remains stable and favorable. This would be a great opportunity for the country to further develop and strengthen its economy.

Like Japanese investors, he stated that Korean companies will feel more secure in the nation if the Government further streamlines administrative processes and implements new incentives.

Hong Sun also revealed that, alongside Samsung’s existing $20 billion investment in Vietnam, other Korean brands such as LG Electronics, LG Display, and LG Innotek are looking to expand their investments in the country in order to make it a global production base for automotive electrical circuits, electronic equipment, and home appliances.

To anticipate the investment wave, Minister Nguyen Chi Dung said that the Vietnamese side would introduce new, attractive investment support incentives amid the enforcement of the global minimum tax slated for 2024. This would help to increase the competitiveness of the local investment environment and harmonize the benefits for investors.

Overcoming Challenges with Trust and Friendship

When faced with difficult situations, trust and friendship can be powerful tools to help us through. Building trust and cultivating strong relationships can help us build support systems, allowing us to tackle any problem that comes our way.

Trust is essential for lasting relationships, as it is the basis for understanding, respect and cooperation. To build trust, it is important to be reliable and consistent, showing that we are dependable and trustworthy. This can be done by keeping our promises, being honest and open, and treating others with kindness and respect.

Friendship is also a key factor in problem-solving. Having a close group of friends who understand us and our struggles can provide us with emotional and practical support. This can make it easier to talk about our issues and to look for solutions. Friends can provide advice and moral support, helping us to get through tough times.

By developing strong trust and friendship, we can create a strong network of support that will help us to overcome any obstacle. With trust and friendship, we can make it through any challenge life throws our way.

Three Foreign Firms to Invest $3.7 billion in Vietnam
Prime Minister Pham Minh Chinh said all problems can be solved with trust, sharing, listening, understanding and companionship. Photo: VGP

At the meeting, Prime Minister Pham Minh Chinh asserted that all issues can be resolved through trust, sharing, listening, understanding, and collaboration, according to VietnamPlus.

Highlighting the Vietnamese Government’s commitment to listening to, understanding, and accompanying foreign investors, as well as its efforts to improve the country’s business environment, the Prime Minister declared that the Party and State always consider the foreign-invested sector an important part of the national economy, with healthy competition and equality amongst other economic sectors.

Vietnam respects and protects the legitimate and legal rights and interests of investors, ensuring harmony between the interests of the State, investors, and laborers. It does not criminalize economic and civil relations, but strictly punishes lawbreakers to protect those who abide by the law and are responsible to the community and common development, he said.

The government leader praised the determination and efficacious operations of foreign firms in Vietnam, which is the crucial element for the fruitful partnership between the two sides.

The Prime Minister remarked that in light of the increasingly complex global and regional environment, as well as the Organization for Economic Cooperation and Development’s (OECD) plans to implement a global minimum tax beginning in 2024, both sides should strive to build stronger mutual trust, share information, listen to each other, and work together as partners.

Rosy Huong