Investors expand in high-tech realm
Investors expand in high-tech realm
The expansion of foreign manufacturers in Vietnam’s high-tech and electronics sectors, coupled with rising export turnover, underscores the country’s growing profitability and appeal to investors.
At a November event in Haiphong in the north of Vietnam, attended by Party General Secretary To Lam, investment registration certificates were granted for 12 new and expanded projects in the city’s industrial parks, totalling $1.8 billion in capital.
Among these, LG Display, part of South Korea’s LG Corporation, announced an additional $1 billion investment, increasing its total commitment in Haiphong to $5.65 billion. The project, one of LG’s largest in Vietnam, will produce 14 million OLED displays monthly.
The other projects receiving approval at the event represented a combined investment of $800 million. These include both new ventures and the expansion of existing operations, further solidifying Haiphong’s status as a major hub for foreign direct investment (FDI).
LG’s investment in Vietnam now exceeds $8 billion, with $5 billion already disbursed. Its three major plants – LG Display, LG Innotek, and LG Electronics – are all located in Haiphong, where they generated combined revenues of $13.97 billion in 2023. Beyond manufacturing, LG has established research and development centres in Hanoi and the central city of Danang, employing over 1,000 staff.
At a meeting with Prime Minister Pham Minh Chinh in July, Cheoldong Jeong, president and CEO of LG Display, reaffirmed this commitment, describing LG’s plans to develop a closed-loop manufacturing complex in Haiphong. “We see Vietnam as a critical global hub,” he stated.
Other notable investments include Heesung Electronics Vietnam, which is injecting an additional $125 million into its Haiphong operations. This brings the company’s total investment to $279 million. The project will manufacture liquid crystal module components with an annual capacity of 10.5 million units, creating nearly 400 jobs and generating $100 million in annual export revenue.
Thanks to these new and expanded investments, Haiphong has attracted approximately $3.5 billion in FDI during the first 11 months of 2024, surpassing its annual target by 140 per cent. Nguyen Van Tung, Chairman of Haiphong People’s Committee, underscored the city’s commitment to attracting more high-tech projects, particularly in semiconductors and electronic chips.
“Haiphong will continue promoting investment activities and building bridges between domestic and foreign firms to integrate deeply into global supply chains,” he said.
Taiwanese tech giant Foxconn is also expanding its presence in Vietnam. Its subsidiary, Shunsin Technology Vietnam, has applied for an environmental permit for an $80 million chip manufacturing project in the northern province of Bac Giang. Located in Quang Chau Industrial Park, the facility will produce 4.5 million integrated circuit boards annually, all for export to key markets such as the US, EU, and Japan. This project forms part of Foxconn’s broader strategy to strengthen its capabilities in AI, smart manufacturing, and semiconductors.
Foxconn chairman Young Liu highlighted the group’s ambitions in the AI server market, citing its strengths in system design, vertical integration, and global operations.
“The AI server market is expected to grow rapidly over the coming years, and Foxconn is well-positioned to maintain its leadership in this area,” he said.
In Q3 of 2024, Foxconn reported record revenue of $56.9 billion, with cumulative revenue for January-September reaching $144.7 billion, setting new highs for the period.
The northern economic zone, which includes provinces such as Bac Ninh and Haiphong, has emerged as a prime destination for foreign investment. Its strategic location near China and other North Asian markets makes it an ideal base for export-driven industries. Meanwhile, the south, encompassing regions like Ho Chi Minh City and Dong Nai, continues to engage investment in electronics, automotive manufacturing, and green energy.
Vietnam’s digital economy is also expanding rapidly, with its data centre market valued at $685 million in 2023. By 2029, this is projected to grow to $1.4 billion, driven by demand for cloud computing and 5G. The government’s Digital Transformation Programme, which aims for half of businesses to operate digitally, further supports this growth. Regulatory changes allowing full foreign ownership in the data centre sector have already spurred investments, including new facilities developed in partnership with global firms.
Trade data from the General Statistics Office reinforces Vietnam’s robust economic trajectory. In October, import-export turnover reached nearly $69.2 billion, a 5.1 per cent increase from the previous month and an 11.8 per cent rise on-year. For the first 10 months of 2024, total turnover reached $647.87 billion, up 15.8 per cent on-year, with exports growing 14.9 per cent to $335.59 billion.
Foreign-invested enterprises contributed $241.62 billion to the nation’s exports, dominating key industries such as electronics, textiles, and machinery.
