A new wave of FDI inflows to Vietnam
A new wave of FDI inflows to Vietnam
More foreign invested businesses have embarked on impressive expansion plans to grow their presence in Vietnam.
Doosung Vina Motor Limited is in full swing to finalise construction of its new office and warehouse complex this June. Efforts have also been taken to prepare space for a new, additional workshop.
“Rising order intake has prompted us to use up all remaining areas of our company’s 50 hectare land at the Hap Linh Industrial Park in the northern province of Bac Ninh. Around $8 million will be injected into building the new workshop,” said Chun Yu Kil, the company’s CEO.
“If current favourable conditions continue, we will assemble the new, second workshop by the end of this year,” Chun added.
The fresh $8 million investment project is double the company’s committed capital stated at its investment certificate granted in 2006. This is also the company’s first expansion plan in Vietnam after nearly 10 years of presence in the Vietnamese market.
Focusing on the production and trading with trailers of various kinds, Doosung Vina was bogged down in corporate hardships and employed a meagre several dozen workers before 2013.
Following government action to curb truck overload, forcing transport companies to better their fleet to meet requirements, business has been consistently picking up due to rising demands.
“Last year we rolled out 600 trailer units and we expect to reach about 2,000 this year. We now have more than 100 workers and will recruit more,” Chun said.
Chun has also unveiled that the parent company in Korea- Doosung Motor- is mulling over setting up a new firm operating in the support industry in the northern province of Hung Yen to take over tasks which Doosung Vina now has to outsource.
At the VSIP Bac Ninh Industrial Park, Foster Bac Ninh Limited, specialising in the production of acoustic and automotive components and products, is planning to build a new 5,000sqm workshop within the 33,000sqm company premises, employing 3,900 labourers.
According to administrative director La Van Thanh Foster Bac Ninh’s disbursed capital has reached $55 million at this point of time. Foster Bac Ninh is one of five Vietnamese plants under Japan’s Foster Group. All production caters to orders made by the parent company.
Meanwhile, Korean electronics giant LG Electronics (LG) two weeks ago launched its $1.5 billion production complex based in Haiphong city’s Trang Due Industrial Park.
At the new complex’s launching ceremony, Minister of Planning and Investment Bui Quang Vinh said the project progress had indicated LG’s long-term commitment to doing business in Vietnam.
“Such moves are luring more investors to drop anchor in Vietnam,” Vinh commented.
Investment flows from Korea and Japan have continued to top Vietnam’s FDI ranking in this year’s first quarter.
Specifically, during January-March this year, South Korea took the lead with $491 million in total committed and expanding investment capital, making up 26.7 per cent while Japan took third place with $294 million, providing 16 per cent of the country’s total FDI inflows.
