Machinery / Industrial Parts & Tools

According to statistics from the Foreign Investment Agency of the Ministry of Planning and Investment of Vietnam, currently, Vietnam has attracted a total of 34,898 foreign investment projects with registered investment capital of US$426.14 billion. In the first six months of this year, Vietnam attracted 16.03 billion U.S. dollars of foreign investment, of which the processing and manufacturing industry attracted nearly 8.84 billion U.S. dollars, accounting for 63% of the total foreign investment.

Not only has it attracted huge investment funds, but the processing and manufacturing industry has also become an attractive field for Samsung, LG, Canon, Honda, Toyota and other world-leading companies. The above-mentioned large groups have continued to expand their investment scope after their successful investment in Vietnam.

For example, in 2008, South Korea's Samsung Group was approved to invest in the construction of Samsung (Vietnam) Electronics Company (SEV) in Bac Ninh Province. Since then, the group has continued to expand its investment scope, investing and building factories in Hanoi, Taiyuan, Ho Chi Minh City and other provinces and cities.

In addition, Daiki Mihara, general manager of Honda (Vietnam), said that Honda built its first project in Vinh Phuc province in 1996. At present, the group is also investing in the construction of factories in Henan Province.

Andrew Lee, senior manager of the South Korean market business development department of Savills Vietnam, commented on the manufacturing industry as the reason for attracting huge foreign investment. Benefit from its advantages in labor resources, political stability and extensive international and economic integration.

In order for FDI projects in the processing and manufacturing industries to truly bring high efficiency without affecting other sectors, economic experts say Vietnam also needs to be "stricter" in project selection to attract financial potential, modern technology, less labor and additional High-value projects, while minimizing the introduction of projects that use outdated technology, use a lot of labor, pollute the environment and waste resources.