Haiphong and Hai Duong report skyrocketing FDI figures
Haiphong and Hai Duong report skyrocketing FDI figures
Haiphong and Hai Duong continue to attract more and more investment capital from foreign-invested projects, which is expected to help boost Vietnam’s economic potential as well as inland investments.
The Haiphong People’s Committee has recently issued LG Display Vietnam Haiphong Company Limited and Rorze Robotech Company Limited adjusted investment registration certificates, adding $500 million and $312 million to their respective investment capitals.
LG Display was granted an investment certificate in April 2016 with the total registered capital of $1.5 billion. It produces and processes OLED displays with a monthly capability of 130,000-150,000 TV displays and 7.6-8.6 million plastic displays for mobile devices, building 13 dormitory buildings and services aiding their 12,000 labourers at Trang Due Industrial Zone.
Meanwhile, being adjusted for the 6th time and increased by $312 million, the total investment capital of Rorze Robotech is now $426 million. The company is located at Nomura-Haiphong Industrial Zone, whose projects concentrate on producing and assembling robots and related parts, as well as robot and motor controlling devices with the annually capacity of 210,000 robot parts and 30,500 controlling devices.
In barely a month, FDI in Haiphong has increased by more than $800 million. Before that, in the first nine months of 2018, Haiphong has attracted $1.454 billion of FDI capital.
“Not only developing the existing projects, FDI also makes great contributions to boosting domestic investment, encouraging the domestic economy to invest in infrastructure, services, material-accessory manufacturing, and logistics in order to make full use of inland forces, such as land, factories, and machinery. So far, Haiphong has attracted a number of leading groups from across the world, such as Bridgestone, LG, Kyocera, Fuji, Xerox, Nippo Pharma, and GE,” said Head of Haiphong Economic Zone Authority Pham Van Moi.
In Hai Duong, Hitachi Cable Vietnam Company Limited has just poured some $900 billion into the factory’s expansion. The company specialises in manufacturing, processing, and assembling a diversified range of conductor wires, electronic cables, and fibre optic cables. The project, which covers 100,000 metres of land area, was invested by Hitachi Metals Group (Japan) in 2008 with the initial capital of more than VND435 billion ($18.91 million). At the moment, its investment capital is valued at VND1.782 trillion ($77.48 million).
Other projects in Hai Duong whose investment capitals have been increased are Kefico Company Limited’s automotive components project at Dai An IZ (added $120 million) and Sumidenso Vietnam Company Limited’s wiring harness manufacturing project.
Thanks to these expansions, Hai Duong has boosted FDI by $522 million.
Recently, most of the expanded projects belong to the manufacturing industry, infrastructure construction, real estate, and commerce and services. Those worth noticing are LG Innitek Haiphong (capital increased by $501 million) and Belgian group Ren A Port which invested more than $150 million in Deep C III IZ on Cat Hai Island and is also an investor of Deep C II which has the initial capital of $141 million.
Representative from Deep C Industrial Complex and general director of Dinh Vu IZ JSC Frank Wouters stated that the infrastructure conditions in Haiphong have undergone a remarkable improvement. Notably, Cat Bi International Airport, Lach Huyen Deep Seaport, Hanoi-Haiphong Expressway, as well as Tan Vu-Lach Huyen Highway and Bridge are the keys opening the door to more investors with more capital-heavy investments.
“As in the past, FDI in Haiphong could hardly achieve $500 million a year (except for 2008 when it hit $1.6 billion). In recent years, FDI flows have been surging. For instance, in 2016 Haiphong attracted nearly $3 billion and in 2018 the figure is expected to be $2 billion or more,” Moi added.
