FDI in manufacturing sectors flexs its muscles
"FDI in manufacturing and processing sectors, especially the supporting industry, which are focused on Vietnam’s FDI attraction policy, has increased remarkably,” said Do Nhat Hoang, director of the MPI’s Foreign Investment Agency. According to the Ministry of Planning and Investment (MPI), the ratio of foreign direct investment (FDI) in manufacturing and processing sectors increased from 40 per cent out of total FDI in 2010 to 48.5 per cent in 2011. In the first eight months of 2012, the ratio hit 67.8 per cent with 281 new projects valued at $5.74 billion.
However, FDI in property is decreasing, accounting for 20.4 per cent of the country’s FDI sum in the first eight months in 2012. This ratio used to be 64 and 36.8 per cent in 2008 and 2010, respectively.
The quality of FDI in Vietnam has changed positively due to the tightening policies focusing on the FDI effective disbursement, and there were more FDI projects in manufacturing and processing sectors, said Hoang.
For example, 16 among 17 new projects awarded investment certificates by southern Binh Duong province in the first eight months of 2012, are in manufacturing* food processing and supporting industries.
Haiphong port city, the second biggest FDI destination in Vietnam from January up to August 2012 with the registered investment capital of $1.05 billion, has just granted an investment certificate for Japanese Fuji Xerox’s $119 million project recently.
Among Asian countries, Fuji Xerox picked Vietnam as the location of its new manufacturing site because the firm said Vietnam was making steady progress toward industrialization.
Also, Vietnam is advantageous as it has industries such as information equipment manufacturers in a concentrated manner, as well as an extensive land transportation network connecting the country with China, Thailand and other Association of Southeast Asian Nations (ASEAN), which will facilitate Fuji Xerox in establishing supply chains.
Haiphong received other two big FDI manufacturing projects this year including $547.8 million radial tire plant of Bridgestone and Nipro Pharma’s $250 million pharmaceutical and medical equipment factory.
Meanwhile, southern Dong Nai province, the third largest FDI destination, achieved $972.8 million in registered FDI, so far of 2012, largely contributed by the $441 million construction material plant of Lixil.
In April Wintek Vietnam, an affiliate of Taiwan-based Wintek Corporation, added further $870 million to its electronic part plant in northern Bac Giang province, up to the total investment of $1.12 billion.
