Japanese Investment in Vietnam Hit a Record High

In recent years, Japanese investors continued to invest in Vietnam. The total direct investment of Japan in Vietnam in 2017 reached 8.5 billion USD, 4 times higher than last year’s and become the highest ever.

According to the Ambassador of Japan to Vietnam, such a high level of investment is one of the factors showing that 2017 becomes a very special year in the history of Vietnam – Japan relations.

Another reason is that the high-level visits between the two countries are ongoing from the beginning to the end of the year, especially the visit of the Emperor at 83 years old.

Japan Prime Minister Shinzo Abe also visited Vietnam twice in 2017, in January and November. Vietnam also successfully organized the APEC Economic Leaders’ Week and the TPP Ministerial Conference. In which, Japan also contributed to this success through close cooperation with Vietnam, including the joint organizing of TPP Ministerial Conference with Vietnam. In addition to economic cooperation, Vietnam and Japan have also strengthened their cooperation in the fields of human resources development, health care, non-refundable aid and defense…

About 230,000 Vietnamese are living in Japan. The number of Vietnamese trainees in Japan has increased eight times in the past five years to more than 100,000, surpassing China to become the country with largest trainee number in Japan.

It is expected that more Japanese companies will make investment in Vietnam through M&A acquisitions or FDI by setting up company in manufacturing, real estate, retail…

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Golden Horse Promotes The 500-Million-Dollar Horse Racecourse Project in Bac Ninh

Golden Horse (Korea) is preparing to soon be able to set up business in Vietnam, with the implementation of the 500 million USD horse racecourse project in Bac Ninh.

At the recent meeting between the CEO of Golden Horse Korea and the Chairman of Bac Ninh Province People’s Committee on the 500 million USD horse racecourse. According to the Korea side, the company is actively mobilizing capital, speeding up the implementation and completion of the project proposal and submit it to the Prime Minister for investment policy. It is expected that in early December 2017, the company will set up representative office in Bac Ninh.

Golden Horse is the project that has been approved by the People’s Committee of Bac Ninh province and sign a Memorandum of Understanding (MOU) from the end of April 2017. This is a project to build a horse racecourse, entertainment complex, resort and commodity circulation center in Thuan Thanh district, Bac Ninh province with a total area of 400 hectares and a total investment of 500 million USD. It will attract 5,000 to 10,000 workers when go into operation.

Also at the meeting, according to Chairman of Bac Ninh People’s Committee, Bac Ninh has reported to the Prime Minister about the project and has invested in transportation infrastructure of the adjacent area. On the provincial side, it is recommended that enterprise implement the project soon. There will be many advantages in site clearance, investment benefits… The Department of Planning and Investment is assigned to continue to guide and create maximum convenience for enterprise in the project implementation process.

Besides Golden Horse, there are quite a lot of Korean investors who want to open a horse racecourse in Vietnam. For example, GOMAX I & D with 1.5 billion USD racecourse project in Vinh Phuc.

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FDI into Vietnam Has Reached over 33 Billion USD

Over the past 11 months of 2017, total foreign investment in Vietnam has reached over 33 billion USD. It continues to show a positive signal that foreign investors choose to set up business in Vietnam more and more.

According to data of the Foreign Investment Agency (Ministry of Planning and Investment), from the beginning of the year to November 20th 2017, the total capital includes newly registered, increased, contributed capital, purchased shares is 33.09 billion USD, increase by 82.8% over the same period in 2016.

Of these, 2,293 new projects were granted investment certificates, with total registered capital of 19.8 billion USD, increase by 52% over the same period in 2016. Moreover, there are 1,100 turns of projects registered to adjust investment capital with total registered capital increase of approximately 8 billion USD, increase by 57.6% over the same period in 2016.

In addition, there are 4,535 capital contribution and shares purchase turns of foreign investors, with a total capital contribution of 5.29 billion USD, increase by 57.6% over the same period of 2016.

Along with the rapidly increase in registered capital, foreign direct investment disbursement also achieved positive results. The figure after 11 months is16 billion USD, increase by 11.9% over the same period in 2016.

Data from the Foreign Investment Agency also showed that in terms of the investment field, foreign investors have invested in 19 sectors. In which the processing and manufacturing industry is attracting much attention of foreign investors with total capital of 14.95 billion USD, accounting for 45.2% of total registered capital.

Electricity production and distribution sector ranked second with total investment of 8.37 billion USD, accounting for 25.3% of total registered capital. The third was the real estate business sector with total registered capital of 2.5 billion USD, accounting for 7.6% of total registered capital.

Regarding investment partners, there are 112 countries and territories have investment projects in Vietnam, of which Japan ranks first with total investment capital of 8.94 billion USD, accounting for 27% of total investment capital. Korea ranked second with total registered capital of 8.18 billion USD, accounting for 24.7% of total investment capital. Singapore ranked third with total registered capital of 4.69 billion USD, accounting for 14.2% of total investment capital.

In terms of the investment area, foreign investors have invested in 59 provinces and cities, in which Ho Chi Minh City is the locality attracting the most foreign investment capital with the total registered capital of 5.68 billion USD, accounting for 17.2% of total investment capital.

Bac Ninh ranked second with total registered capital of 3.28 billion USD, accounting for 9.9% of total investment capital. Thanh Hoa ranked third with total registered capital of 3.16 billion USD, accounting for 9.5% of total investment capital.

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After 11 Years, Van Phong 1 Thermal Power Project Was Licensed

Van Phong 1 thermal power project, with investment capital of 2.58 billion USD was officially granted investment certificate, marking another project of Japanese investors invest in Vietnam. This coal-fired thermal power plant has a capacity of 1,320 MW.

Van Phong 1 thermal power project was proposed by the Sumitomo Corporation (Japan) in 2006, with a capacity of 2,640 MW, covering an area of over 350 hectares, divided into two phases. Of which, the first phase has investment capital of over 2 billion USD. In 2009, the project has been approved by the Government to be implemented in the form of BOT.

However, due to many obstacles, including BOT contract negotiations, so far, the project has not yet been implemented or even cannot complete procedures to be issued investment certificate.

The project is expected to be built on an area of over 514.79 hectares, including 178.4 hectares of factory, 68 hectares of fodder land, 3.4 hectares of accommodation for professionals and 265 hectares of water surface area. Since the size of land use is quite large, the ground clearance process faced with a lot of difficulties.

However, the project has now officially been licensed. According to the plan, in early 2018, the project will be started construction.

So, from the beginning of this year, three BOT thermal power projects have been granted investment certificates. The largest is the construction of Nghi Son 2 BOT thermal power plant with a total investment of 2.79 billion USD. The project is also invested by a Japanese investor in Thanh Hoa, aiming to design, construct, operate and transfer a coal-fired power plant with a capacity of 1,200 MW.

The second largest is Van Phong 1 thermal power plant. And third is BOT Nam Dinh 1 thermal power project, with a total investment of 2.07 billion USD.

BOT Nam Dinh 1 is invested by Singapore Investors with the objective of designing, constructing, operating and transferring a coal-fired thermal power plant with the net capacity of 1,109.4 MW.

This is the reason why, in the past 11 months, electricity production and distribution has risen to the second position among the sectors attracting the most investment, after processing industry. Total investment capital into this field is 8.37 billion USD, accounting for 25.3% of the total registered capital.

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A Chain of 130 Restaurants in Japan Want to Conquer the Vietnamese market

Gyu Shige – a Japanese restaurant brand decided to enter and set up business in Vietnam, aims to open 70 branches in Vietnam in the next 5 years.

According to Mr Kentaro Takada, Global Development Director of Gyu Shige Bbq Restaurant chain, after a year of operation in Vietnam, the company aims to set up a chain of 30 branches in 3 years and up to 50 – 70 branches in 5 years. This brand now has 3 stores in Ho Chi Minh City (HCMC).

The plan to conquer the Vietnam market of this Japanese brand has been in place for 3 years. Large populations, prefer Japanese culture and bbq dishes are the advantages for them to do business in Vietnam. Through partnerships and direct exploration, Gyu Shige has officially entered Vietnam in 2016 with its first store in a major trading center in HCMC.

According to representatives of Gyu Shige, Vietnam has been an economic hot spot in Southeast Asia for several years, attracting many investors. Unlike the fierce competition of the food industry in Thailand, they see many opportunities to develop and decide to choose Vietnam as the first overseas market.

With the strength of a chain of 130 successful restaurants in Japan, this brand almost delivers the original to Vietnam. The reason is that Vietnamese people love Japanese food and adapt quickly to new dishes. Beef is imported from the US, raw materials used for processing and sauces are imported from Japan and vegetables originate from agricultural farms in Dalat (Vietnam). In order to ensure quality, the central kitchen is equipped with full equipment like in Japan, so that the processing and preservation process are also following strict procedures.

The global development director of this restaurant system believed that their advantages are the delicious sauce and following the friendly restaurant segment, with spending of 10 USD to 17 USD per person per meal. Moreover, with the development of the fast-food market, demand for food will be higher, especially for friendly restaurant segment. Therefore, this will be a great potential for business in the future.

After one year of operation, Gyu Shige’s sales in Vietnam grew by nearly 50% month-on-month, with over 70% of customers returning. That is why businesses decide to go deep into the market, targeting 50 – 70 branches and covering the whole country in 2022.

Representatives from the brand said that in the next 3 years, the segment of Japanese cuisine in Vietnam will continue to boom. Gyu Shige has over 20 years of development with 130 branches in Japan. After Vietnam, the company plans to conquer other markets such as Australia, USA, Singapore, Thailand…

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US Textile and Footwear Enterprises Seek Opportunities in Vietnam

In the context of the absence of the Trans-Pacific Partnership (TPP), US textile and garment companies are finding their own opportunities to invest in Vietnam.In late October, the American Apparel and Footwear Association (AAFA) and the American Chamber of Commerce in Vietnam (AmCham Vietnam) organized a series of activities in Ho Chi Minh City.

According to the information shared at the program, the growth rate of exports from Vietnam to the US continues to outstrip competitors, although not benefiting from any preferential trade programs or free trade agreement.

According to the AAFA, garment imports into the United States from Vietnam increased by 8.74%, footwear increased by 11.83% in the last 12 months, and Vietnam is the second largest exporter to this market, after China. Retailers and consumers in the United States see the strengths in quality, price and delivery commitment of Vietnam. This is also the reason that AAFA and US businesses come to Vietnam.

According to the regional director of Hanes Brands (USA), after 10 years of presence in Vietnam, the total investment of this group is about 55 million USD, with 3 factories in Thua Thien Hue and Hung Yen. Production capacity of Hanes Brands Vietnam currently accounts for about 20% of the Group’s total global production. Vietnam is identified as Hanes Brands’ manufacturing base in South East Asia, in which the Hue factory is equipped with the most modern technology and equipment.

According to a senior adviser at Alston & Bird LLP, despite the absence of TPP, there are other opportunities for Vietnamese textiles and footwear. Accordingly, the programs that businesses should pay attention to are: the Regional Comprehensive Economic Partnership (RCEP), the European Union – Vietnam Free Trade Agreement (EVFTA), the Belt Road Initiative (BRI), the Vietnam – China Strategic Partnership (Two Corridors and one Economic Belt)…

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Anam Electronics (Korea) Build 100-Million-Dollar Factory in Vietnam

A large electronics manufacturer from Korea – Anam Electronics Vietnam has officially choose Dong Van IV industrial park to set up business in Vietnam.

After a period of researching investment locations in the North of Vietnam, Anam Electronics Vietnam decided to choose Dong Van IV industrial park as its investment location.

Accordingly, Anam Electronics Vietnam will invest in building a factory here with an area of 100,000 m2, investment capital is estimated at 100 million USD.

The signing ceremony of land lease contract in Dong Van IV industrial park was held between Viglacera Real Estate Company and Anam Electronics Vietnam.

Anam Electronics is a 100% Korean owned company specialized in producing high quality electronic audio products such as: amplifiers, digital receivers. The company mainly supplies products to leading audio manufacturers in Japan, USA such as Harman Kardon, Denon, Marantz, JBL, Yamaha…

Viglacera’s Dong Van IV industrial park has successfully attracted 10 investors, most of which are electronics businesses with nearly 40 hectares of land.

So far, Dong Van IV industrial park has been the destination of many domestic and foreign brands such as Masan Group, Sunjin, Jeio Vina, James Tech, Saki, Park Electronic Vina, Sunjin F & F Limited…

Dong Van IV industrial park is conveniently located, 50km from Hanoi, on Highway 38, which is easily accessible from the Ha Noi – Hai Phong expressway to Hai Phong port. Along with the policy mechanism to support the investors of Ha Nam province, Dong Van IV industrial park has received great attention from investors, and became the ideal choice for enterprises, especially FDI enterprises.

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Finland Poured 33 Million USD into Clean Energy Projects in Vietnam

Watrec Company has just started to invest in Vietnam with a clean energy project, investment capital of 30 million euros (over 33 million dollars) in Hanoi.

Specifically, the project is converting energy from waste with the processing capacity of the plant about 600 tons of waste per day. The project is a comprehensive solution for collecting urban solid waste, classifying and converting it into biogas, as well as other combustible materials to produce electricity. At present, Watrec is in the process of negotiating with partners to finalize the allocation of funds for the project.

Watrec is the leading biogas technology company in Finland, handling 315,000 tonnes of organic waste each year at its plant-building chain. The project in Hanoi aims to manage the mixed waste that has not been classified and treat urban solid waste.

According to FinPro’s representative, Vietnam has the potential to develop clean energy projects from urban waste and agricultural and forestry waste.

FinPro focuses on converting waste into energy and bioenergy in Vietnam for about 2 years. Therefore, FinPro understands the potentials and challenges in converting waste into energy in Vietnam.

In fact, in recent years, many Finnish companies have invested and implemented projects in this field in Vietnam and have made positive progress.

For example, Doranova has one of the largest projects with a landfill disposal facility worth 6m euros under construction in the outskirts of Ho Chi Minh City, aiming to convert 35,000 tonnes of waste into energy.

Nearly a year ago, Doranova is one of the Finnish companies to undertake a project to convert waste into energy in Binh Duong. Accordingly, this project will recover the gas from the landfill and treat, supply the biogas to the power plant with a capacity of 1.6 MW.

Regarding the investment and construction of clean energy projects, according to representative of Valmet, the leading company in Finland, Vietnam is Valmet’s investment priority. From the investment realm, deploying projects in this area, Valmet’s representatives made 3 recommendations. First, it is necessary to determine the feasibility of the project by identifying the source of input waste from the plant. The second is about the fee collected from the garbage carrier to the processing plant. Third, it is necessary to consider electricity price lists when selling to EVN.

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German Investors Funded 15 Million USD for Kinh Bac to Implement Workshop Project

Japan-Vietnam economic cooperation will form a new value chain

The total investment value of the project is 33.4 million USD, equivalent to about 755 billion VND, which is invested in construction and development in industrial zones.

According to information from Kinh Bac City Development Holding Corporation (KBC), the subsidiary of this unit is Kinh Bac Office and Workshop Trading One-Member Limited Company has just reached an agreement: signed contract to finance a project to build a workshop with the German Investment Corporation (DEG) under the German Development Bank (KfW). KfW is now managing more than 600 billion euros.

Accordingly, Kinh Bac Office and Workshop Trading One-Member Limited Company will receive a long-term loan from the DEG worth 15 million USD (total value of the project is 33.4 million USD) with a loan term of up to 8 years to supplement the capital for construction and development of workshops in industrial zones.

According to DEG’s representative, Mr Hubertus Pleister – Director of DEG Asia, Vietnam’s economy has grown steadily, continuously and sustainably over the long term, this is an important market, with many investment inflows. In addition, KBC is known as a prestigious business in the field of real estate and calls for foreign investment in industrial parks.

According to KBC, in addition to sponsored the above funds, DEG also committed to support KBC to access to other long-term development funds from financial institutions under the European Development Finance Institutions (EDFI) where DEG is a key member. KBC has undergone a rigorous 2-year appraisal process that ensures DEG’s criteria for financial capacity, management and environmental factors.

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IHI Corporation (Japan) Wants to Participate in Transportation Projects in Hai Phong

Japan is a familiar investor in the Vietnamese market, many Japanese companies have set up business in Vietnam and IHI Corporation is not an exception.

Recently, Hai Phong People’s Committee has been working with the delegation of IHI Corporation (Japan) to explore opportunities to participate in transportation projects in Hai Phong. At the meeting, Mr Atsushi Kutawa – Managing Director of Operations, President in charge of business of IHI Corporation has talked about the company’s business situation with city leaders.

In particular, IHI has successfully built Binh bridge (Hai Phong) and Nhat Tan bridge (Hanoi). In 2015, the Group has built the IHI Infrastructure Asia (IIA) plant at Dinh Vu Industrial Park, which specializes in the manufacture of steel structures, supplying for bridge construction projects, thermal power plants and engineering facilities, serving for key construction works in the city.

Through investigation, it is known that there are plans to deploy Hai Phong transportation expansion projects, in which Nguyen Trai bridge and many key bridges connecting trade between the city and the northern provinces will be built. Hence, IHI Corporation wishes to have the opportunity to contribute their accumulated experiences to the cooperation and construction of these bridges.

Accordingly, Chairman of Hai Phong People’s Committee has highly appreciated the effective cooperation between Vietnam – IHI in the past time and also provide information about the bridge construction projects of Hai Phong in the coming time, like Nguyen Trai bridge, Vu Yen bridge…

In addition, he also expressed his wish that in the near future, IHI will explore and promote the cooperation in building bridges of Hai Phong. At the same time, in coordination with the Japan International Cooperation Agency (JICA), speed up the implementation of transportation projects, focusing on the Nguyen Trai bridge project.

Hai Phong always take care and create conditions for qualified contractors with high quality products. With the potential, efficiency and experiences of the IHI Corporation that has been confirmed, Hai Phong city will create the best conditions for the IHI Corporation to participate in the transportation development projects of Hai Phong in the coming time.

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Macau Casino Group Poured Billions of Dollars into Vietnam

Sun City is currently the largest casino resort group in Macau, spending billions of dollars investing heavily in casino resorts in Asia and set up casino business in Vietnam.

The group was founded in 2007, owns about 17 VIP clubs and 280 gaming tables, serving Macau’s largest betting and casino market as well as VIP clubs in Korea, China and Philippines.

Currently, Sun City operates large casinos with monthly betting up to 130 billion HKD (approximately 17 billion USD). However, in order to expand its business in Asia, Sun City is spending billions of dollars investing in casino real estate projects in Japan and other countries, including Vietnam.

This plan of Sun City kicked off in 2014 with the acquisition of shares and the bid to operate large casinos in many countries.

In Vietnam, a 4 billion USD casino resort project in South Hoi An is underway to build phase 1 with a total investment of 500 million USD with the participation of Sun City. Three partners involved in investing in this billion dollar resort complex are Sun City, Chow Tai Fook (Hong Kong) and Vinacapital.

According to Bloomberg, Sun City owns 34% of the complex through its subsidiary and has acquired the casino management contract of the project.

The South Hoi An project has scale of up to 985.6 ha, the total investment is 4 billion USD. Currently, the phase 1 of the project is expected to develop on an area of about 163 ha, with an investment of nearly 500 million USD, including resort, casino complex, luxury golf course, hotel rooms, luxury apartments and add-ons…

Previously, Sun City has also been eyeing the Vietnam resort market when concerning and want to invest in a casino project in Duong To (Phu Quoc). However, due to the land fund in this area has been licensed to other investors, Sun City wants to replace by Rach Tram, Bai Thom commune.

In 2010, VinaCapital and Genting Berhad of Malaysia were licensed to invest in South Hoi An project, however, due to financial difficulties, in 2012, Genting Berhad unexpectedly withdrew from this project, thus VinaCapital has been continuously seeking for investment cooperation partner. In 2014, Hong Kong billionaire Cheng Yu Tung – the owner of Hong Kong’s Chow Tai Fook, a Hong Kong-owned jewelery and real estate group, ranked by Forbes as the fourth richest person in Hong Kong with total assets worth 16.2 billion USD has participated into this project, in partnership with Sun City and VinaCapital.

With the expansion of casino-based real estate business in Vietnam as well as in other countries in the region, Sun City is clearly seeking to become a leading casino corporation in the world, such as Las Vegas Sands or Wynn Resorts.

According to Bloomberg, Sun City’s expansion ambitions are planned even when the Macau casino market is growing fast thanks to China’s economy recovering and players spending more and more money, with a 20.4% increase in August. Casino revenue in Vietnam is estimated at 1.2 billion USD, according to Grand Govertsen, a Macau-based gaming analyst. Finally, also according to this report, Vietnam now has about 30 gaming establishments with prizes with 1,900 slot machines and 400 tables. With the relationships with VIP customers of Sun City, it is believed that the project will achieve significant ROI.

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Gia Lai Calling for Investment in High-Tech Agriculture and Tourism

In recent years, Vietnam has continuously called for foreign investors to come and set up business in Vietnam and most recently, Department of Planning and Investment of Gia Lai province is planning to coordinate with the Department of Planning and Investment of Ho Chi Minh City (HCMC) to organize Gia Lai Investment Promotion Conference 2017.

The conference is scheduled to be held at the end of this year in Pleiku city, Gia Lai province. The areas highlighted at the conference will be: high technology agriculture, agricultural products processing and tourism. These areas are considered as strengths with high potential development of Gia Lai province.

In terms of projects that are given the investment policy decision by Gia Lai Provincial People’s Committee (10 projects – total registered capital of 5,516 billion VND) at Gia Lai Investment Promotion Conference 2016, currently 3 projects have completed construction and go into operation: Sugar Factory Project and An Khe Biomass Power Plant Project, which is invested by Quang Ngai Sugar Joint Stock Company, Beef Experiment Project of Tay Nguyen Dairy Products Joint Stock Company. In addition, six projects are under development and another is being revised.

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Foreign investor in Binh Duong

Korean investors have set up business in Vietnam a lot in the recent years and this country is also the third largest foreign investor in Binh Duong province with 619 projects.

At the meeting between Binh Duong People’s Committee and Korean investors held on August 16th, according to reports of Department of Planning and Investment of Binh Duong province on the attraction of foreign direct investment (FDI) in the first six months of 2017, there was positive changes. The total FDI capital reached 1.726 billion USD, equal to 123% of the year plan and increase by 51% over the same period in 2016.

Specifically, there are 97 new projects with capital of 1.034 billion USD, 62 projects adjust and increase capital of 670 million USD. The sectors attracting a lot of investors are electricity, electronics, mechanics, pharmaceuticals, chemicals, trade and services…

Particularly for Korean investors, in six months of 2017, there are 16 new projects and 17 projects adjusted for capital increase. Overall, total investment reached 306 million USD. Accumulated until June 30th, Korea is the third largest foreign investor in Binh Duong (after Taiwan and Singapore) with 619 projects worth 2.694 billion USD.

With the efforts to improve the investment environment, Binh Duong is always attracted by investors, the number of foreign investors coming to the province to explore investment opportunities in the first half of 2017 continued to increase over previous years. FDI attraction results of Binh Duong is a good signal, affirming that the investment environment of the province is very attractive to foreign investors.

Binh Duong currently has 28 industrial parks with an area of 10,560 hectares and 11 industrial clusters with an area of over 802 hectares, occupancy rate reaches over 70%.

Binh Duong is still implementing some new industrial zones and expanding existing industrial parks such as Bau Bang Industrial Park (1,000 ha), Nam Tan Uyen (446 ha), approving new investment of An Lap industrial cluster (75 ha).

In the period 2016 – 2020, Binh Duong will develop up to 33 industrial parks with an area of nearly 15,000 ha.

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Hemaraj (Thailand) Builds Billion-Dollar Industrial Park in Nghe An

Nghe An – a province located in the central region of Vietnam always has a lot of attractive incentives for foreign investors who come and set up business in Vietnam. In which, Nghe An has a number of solutions to support infrastructure enterprises to quickly implement large-scale industrial parks, including the Hemaraj industrial park – which is preparing to start construction.

According to the plan, at the end of October 2017, Hemaraj industrial park project in the South East Economic Zone will be started construction by Hemaraj Group (Thailand). construction work. The project has a total area of about 3,200 hectares, total registered investment of about 1 billion USD, divided into 7 phases, in which phase I has an area of nearly 500 hectares.

According to leaders of Nghe An province, the provincial leaders are providing maximum support to Hemaraj so that the project can started construction as soon as possible.

Prior to that, in September 2015, a joint venture between Sembcorp Group (Singapore) and Becamex IDC have kicked off the VSIP Nghe An project with an area of 750 hectares. Currently, the project has leveled and built synchronous infrastructure for about 100 hectares of industrial land phase 1A.

More than 90 companies from many countries and territories have come to seek information and investment opportunities at VSIP Nghe An and 10 companies have signed investment commitments with total investment capital of over 400 billion VND. By the beginning of September 2017, some companies was handed over land and started to build the plant.

In order to attract investment, leaders of Nghe An province will be more drastic in reforming administrative procedures. Accordingly, if foreign enterprises want to complete the investment license application, they should only go through the one-stop department of the Investment Promotion Center of Nghe An province.

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Thailand: Long-term Investors in Vietnam

Thailand is one of the few investors involving in a lot of industries in Vietnam, they set up business in Vietnam for years and this trend has not shown signs of decline.

Thailand was one of the first foreign investors came to Vietnam in 1992. To date, Thai investors have committed to invest in Vietnam 468 projects with a total registered capital of 8 billion USD, ranked 10th among countries and territories investing in Vietnam. Thai investors have poured capital into many sectors of Vietnam’s economy, from processing industry to agriculture, wholesale and retail…

After more than 25 years of presence in Vietnam, Thais have quietly acquired BigC, Metro, Nguyen Kim, Vinamilk, Prime… The chain of wholesale and retail stores of Thai people has spread throughout Vietnam. Not many foreign investors in Vietnam can do that.

With a large investment scale, it can be said that Thailand is the leading investment partner of Vietnam. Meanwhile, in ASEAN, Thailand is Vietnam’s largest trading partner, while Vietnam is Thailand’s second largest export partner, with total bilateral trade in 2016 reached 12.5 billion USD. Of which, Vietnam exports to Thailand reached 3.7 billion USD. In the first half of 2017, total two-way trade turnover reached nearly 7 billion USD, increase by over 22% over the same period last year. The two sides set a target to bring two-way trade turnover to 20 billion USD by 2020.

However, Vietnam and Thailand are also direct “competitors” in both competition to attract foreign investment and export goods. There are a lot of Thai exports that are similar to Vietnam’s exports, in which rice is one of the typical items.

In terms of investment attraction, Thailand has long been a leading investment destination in the region and Vietnam is competing directly with this market. In recent years, many Korean and Japanese investors, including LG, have decided to move production sites from Thailand to Vietnam. According to a report released by PwC, Vietnam has surpassed both Thailand and Malaysia in terms of new FDI inflows. Even PwC says that overtaking Thailand and Malaysia, Vietnam is at a “booming point” in the development process, thanks to a series of trade agreements being signed and an increasingly transparent and open business environment.

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Foreigners Rushing to Buy Real Estate in Vietnam

Hundreds of millions of dollars are waiting to pour into Vietnam real estate market in most segments. The real estate market attracts a lot of foreign investors, mainly through M&A activities.

According to the newly announced report from Savills Vietnam, in quarter 2 of 2017, housing development projects received strong attention. China Fortune Land Development Group has bought shares in VinaCapital’s Lotus Dai Phuoc project for 65.3 million USD. Dai Phuoc Lotus is a residential area project with a total area of 198.5 million hectares in Dong Nai province, bordering Ho Chi Minh City.

In addition, VinaCapital’s Times Square project (Hanoi) worth 41 million USD is also transferred to Elite Capital Resources Limited.

Japanese investors are also active in the market. Nishi Nippon and Hankyu cooperate with Nam Long to build a 26 hectares Mizuki Park residential project in Binh Chanh district, Ho Chi Minh City with total investment capital of 351 million USD.

In addition, Aeon Mall – the famous Japanese retailer has officially co-operated with BIM Group to develop the second shopping center of Aeon in Hanoi with an area of 16.7 ha, the estimated investment capital is 200 million USD.

In the field of industrial real estate, Hemaraj Land & Development (Thailand) and Cienco 4 (Vietnam) have officially confirmed the joint venture to establish 1 billion USD industrial park on 3,200 hectares of land in Nghe An province.

In recent years, the real estate market of Vietnam has witnessed the strategic moves of investors, including mergers – acquisitions and development – cooperation. Some typical deals include Gaw Capital’s acquisition of a series of high-value commercial properties from Indochina Land, Gamuda Land’s acquisition of stake of local investors in the Celadon City project.

At the same time, the M&A market happened on a large scale in all different segments, such as the joint venture between Chau Tai Phuc and Suncity Group into the large resort and casino project in Nam Hoi An with total investment of up to 4 billion USD or the deal that Lotte acquired Diamond Plaza.

The market is expected to continue to be active in 2017 with a series of acquisitions and mergers.

According to JLL Vietnam, in the first half of 2017, Vietnam has attracted about 19.2 billion USD of foreign investment capital, increase by 54.8% over the same period last year. This shows that Vietnam is still one of the potential markets for investment in Southeast Asia.

There are hundreds of millions of dollars waiting to be poured into the domestic market in most segments, including housing, offices, retail, hotels and industrial parks, according to JLL. Investors come from different countries like Japan, Korea, Singapore, and the growth of investor groups from China.

Joint ventures are becoming more popular among foreign investors – with strong financial strength and experiences, they will work with local corporations – investors who holding land in the market and also has close relationships with local authorities.

The hotel segment has always attracted the attention in the recent time with a lot of foreign capital poured into Vietnam. Forecasting this trend will continue to grow, while other markets such as industrial park and education are also growing constantly. The affordable housing market is seen as attracting much investment capital, largely due to the rise of the middle class.

Lastly, according to Savills Vietnam, M&A will continue to be the form that the vast majority of investors will use to enter the Vietnamese market in order to realize their goals.

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Startup in Ho Chi Minh City Will Be as Convenient as in Singapore

A series of specific commitments has been confirmed by HCMC’s Party Secretary Nguyen Thien Nhan to help startup environment in HCMC becoming as favorable as in Singapore.

The city is committed to preparing an industrial park reserved for newly startup and innovative businesses. Secondly, the procedure for setting up company in Ho Chi Minh City will be as good as in Singapore. Third, in addition to private investment, the city will also, on a case-by-case basis, pilot public-private partnerships in support of innovative entrepreneurship.

In addition to the above 3 commitments, according to Mr Nguyen Thien Nhan, HCMC will have a general information page to reflect the creative start-up activities in the area. At the same time, he decided to meet face-to-face with the startup community twice a year to listen to their mind and remove difficulties in time.

In general, in the past year, HCMC has had very specific and significant results in comparison with other provinces in terms of start-up activities. According to director of the Department of Science and Technology of HCMC, this agency has set up 5 spaces to support innovative start-ups and links with 24 business incubators with a total floor area of over 22,000 square meters. Of which, 50% capital is from socialization.

In addition, The SpeedUp 2017 program has provided financial support tools from the budget for innovative startup projects through enterprise incubators. In the past 8 months, this program has received and processed 112 innovative startup project applications. The number of selected projects was 14/112 (12.5%), which is quite high compared to the current selection rate of many investment funds (VIISA reaches 5%, VSVA reaches 8%).

This year, the HCMC Department of Science and Technology has also set up 4 Steering Committee for Innovative Ecosystems for 4 key areas of the city, including mechanics, food processing, plastic – rubber – chemistry and information technology.

With a network of 145 consultants and innovative start-up advisors from many different disciplines, up to now, 938 start-up projects have been connected to help develop business ideas. There are 3,200 individuals and start-up groups connected to investors, experts and consultancy organizations. Moreover, over 300 startup products are promoted to the community.

However, a general assessment from the Department of Science and Technology of the City, most startups in Vietnam are newly invested at the seed stage with small scale and the possibility of breakthrough growth is not high. This is a matter of concern.

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Toyoda Gosei Invests in Auto Parts Factory in Tien Hai Industrial Park

Toyoda Gosei Group, the world’s leading manufacturer of auto parts, supplying for Toyota (Japan) has decided to choose Tien Hai Industrial Park, Viglacera as the location to set up factory in Vietnam.

Viglacera Real Estate Trading Company and Toyoda Gosei Group of Japan have just signed a land lease contract with an area of 11.3 hectares in Tien Hai Industrial Park, Thai Binh province, which is invested by Viglacera Corporation.

Toyoda Gosei is the world’s leading auto parts manufacturer, supplying for Toyota, with a network of about 100 factories and offices in 18 countries and regions.

The new plant is expected to be built in early 2018 and put into production in 2019 with a total investment of 24.6 million USD, specializing in the production of airbag components and airbags for safe protection for drivers and passengers in cars, leather and polyurethane coated car steering wheels.

Toyoda Gosei’s products will be exported to Japan, USA, Europe and some other regions.

Toyoda Gosei has also invested in Hai Phong, with 3 large-scale workshops, and also one of the largest investment companies in Nomura Industrial Park in Hai Phong.

Tien Hai Viglacera Industrial Park has the advantage of geographical position when locating near the coastal highway connecting the 6 northern coastal provinces (Quang Ninh – Hai Phong – Thai Binh – Nam Dinh – Ninh Binh – Thanh Hoa), which has just started construction in May 2017. In which, the construction of the expressway locating in Thai Binh province will be completed by the end of 2018, shortening the distance and travel time from the industrial zone to Hai Phong port (40km) – 60 minutes).

In addition, enterprises in Tien Hai Industrial Park are also enjoying attractive incentives for enterprises in the economic zone such as 10% corporate income tax rate for 15 years, tax exemption for the first 4 years and reduction of 50% for the next 9 years; land rental exemptions from 11 to 19 years; import tax incentives; personal income tax incentives…

Therefore, only after less than one month since the decision to establish Thai Binh Economic Zone was issued, Tien Hai Viglacera Industrial Park has received the attention for information and investment decision from many investors coming from the countries like Japan, Korea, Hongkong, Taiwan…

In order to meet the increasing demand for land leasing to build factory in Tien Hai Industrial Park, Viglacera is actively promoting land clearance to ensure a large area of clean land, complete construction of infrastructure to create the most favorable conditions for businesses operating here.

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Mavin Pledged to Invest 80 Million USD in Nghe An

Mavin Group (Australia) has operated in Vietnam for a long time and now they do not hide their ambition to expand investment and set up business in Vietnam.

In February 2017, Mavin Group inaugurated an animal feed production factory in Nghe An. This plant has a total investment of 15 million USD, which is built on an area of 3.6 ha and has a capacity of 300,000 tons per year.

Mavin Group has invested in Vietnam for more than 12 years and now has production facilities in 7 provinces and branches, warehouses in 19 different provinces in the country. However, up to date, Nghe An is the only province that Mavin plans to invest in 4 separate projects with a total investment of 80 million USD.

In addition to the inaugural animal feed factory, Mavin Group plans to deploy 3 more projects in Nghe An.

In April 2017, Mavin Group was granted a license to invest in a 18 million USD hi-tech pig farm, built on an area of ​​100 hectares. Subsequently, the Mavin Group plans to invest in a Veterinary Research Center. At the same time, conducting a feasibility study to invest in a food processing plant that may be launched by 2018. The project has a total investment of 25 million USD, built on an area of ​​5 hectares, capacity of 200,000 tons/year. This factory will produce products made from meat, sausage, ham and other traditional meats… serving the domestic market and exporting to Laos and Cambodia.

According to the Chairman of the group, Mavin Group before making investment decision always consider 6 issues that are: human resources; market; geographic factors; political issues (attention, government support, security…); incentive policy and transparency.

In addition, representatives of the Mavin Group expressed their satisfaction when investing in Nghe An. Moreover, they also suggested that investors should choose to invest in Nghe An not only because of favorable geographic location, synchronous facilities, great source of human resources but also highly supported from province leaders with great investment incentives.

According to the representative of Vietnam – Singapore Industrial Park (VSIP) in the Central and South regions, recently many local and foreign investors have come to Nghe An seeking investment opportunities.

Previously, in September 2015, VSIP Nghe An was officially started construction with a total area of 750 hectares. After more than a year of land handover, up to now, VSIP Nghe An has now leveled and built complete infrastructure for about 100 hectares of industrial land area in phase 1A. The wastewater treatment system, clean water supply, power supply, fire prevention and protection have been completed and ready to serve investors in production.

More than 90 companies from many countries and territories have come to find out information and investment opportunities at VSIP Nghe An and 10 companies have signed investment commitments with total investment capital of over 400 billion VND. By the beginning of September 2017, some companies have received land handover and started plant construction. In which, the first factory was officially put into operation. It is expected that by the fourth quarter of 2017, two more companies will come into operation, attracting about 1,000 workers.

It is known that VSIP Nghe An is the 7th project that VSIP deployed in Vietnam. Previously, in addition to 2 VSIP projects in Binh Duong, there are projects in Bac Ninh, Hai Phong, Quang Ngai and Hai Duong. Currently, VSIP’s projects attract a total of 720 investors from 30 countries and territories with total domestic and foreign investment of 9.2 billion USD, creating jobs for about 180,000 workers.

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Indonesian Producer Wants to Invest in Vietnam

Vietnam has become a destination for Indonesian investors to set up business in Vietnam thanks to the ever-improving investment environment and the establishment of the ASEAN Economic Community (AEC).

At the Conference named “Vietnam – Indonesia: Strengthening trade cooperation in palm oil and paper industries” that was recently held in Hanoi, the Indonesian Ambassador in Vietnam said that many Indonesian businesses are exploring business and investment opportunities in Ha Noi, Ho Chi Minh City, Da Nang and many other places in Vietnam.

Accordingly, more Indonesian investors will come to Vietnam in the coming time because Vietnam is a promising place for Indonesian investors to open their production bases thanks to AEC tariff reductions.

According to the Indonesian embassy, the Indonesian 12 largest palm oil exporters and 14 largest paper exporters are planning to expand their export markets to Vietnam and expecting to enter into joint ventures with local businesses to directly produce products in Vietnam.

In addition to calling for investment and cooperation in the palm oil and paper sectors, Vietnam has recently welcomed many Indonesian investors coming to Vietnam seeking investment opportunities and doing business successfully in the areas of animal feed, building materials, real estate…

Meanwhile, Indonesia’s capital flowing into Vietnam through mergers and acquisitions has been rising steadily, such as PT Semen Gresik – Indonesia’s largest cement company, has spent 230 million USD buying 70% of the shares in Thang Long Cement Company from Geleximco.

Indonesia’s second largest M&A deal in Vietnam is Salim Group spent 37 million USD to purchase 49% shares in Hiep Thanh Group – a trading, processing, aquaculture and export group of two agriculture strategic products that are rice and seafood.

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New Taste of Singaporean Investors

Recent projects of Singaporean investors have shown new features in the investment taste of Singapore enterprises when they decide to set up business in Vietnam.

In July 2017, United Overseas Bank (UOB – Singapore) was approved by the State Bank of Vietnam (SBV) in principle to set up a 100% foreign owned bank in Vietnam. The list of personnel proposed to be appointed as members of the Board of Members, the Board of Supervisors, the General Director of UOB has also been approved. After much waiting, UOB finally has a “passport” to operate in Vietnam as a bank with 100% foreign capital in Vietnam. What is left is just completing the dossiers and procedures for the SBV to make the final decision.

UOB is the first bank in Singapore setting up a subsidiary in Vietnam. This event seems to mark the “new taste” of Singaporean investors. Previously, Singapore’s investment capital is mainly focused on such projects as processing, manufacturing and real estate. Now, it seems that the cash flow is changing direction.

Not just banking project, latest information indicates that Singaporean investors have also begun to pay attention to the energy sector in Vietnam. Last year, UOB under UOB Venture Management Pte Ltd (UOB VM), along with ORIX Corporation (Japan) have invested 25 million USD in Bitexco Power JSC under Bitexco Group. The involvement of well-known global organizations like UOB and ORIX will make a significant contribution to Vietnam’s energy sector.

In addition, Sembcorp is also a Singaporean investor willing to invest billions of dollars for a power plant in Vietnam.

According to the information, at the end of July 2017, Sembcorp’s representative went to Quang Ngai to officially report to the leaders of this province that Sembcorp will have a Feasibility Study Report at the end of this year about the gas thermal power plant in Dung Quat Economic Zone.

Last year, The Blue Circle – Singapore’s wind power developer has received an investment certificate for a 40 MW project in Ninh Thuan province, with investment capital in the 1st phase of 60 million USD.

In fact, Singapore has always been a leading investor in Vietnam. According to data from the Foreign Investment Agency (Ministry of Planning and Investment), the accumulated capital so far invested by Singaporean enterprises is 41.6 billion USD, ranking 3rd in countries and territories investing in Vietnam. Many of Singapore’s projects have contributed significantly to Vietnam’s socio-economic development.

One of the noteworthy examples is Sembcorp joint venture with Becamex to develop a series of VSIP industrial parks and urban areas spanning across Vietnam, from Binh Duong, Bac Ninh, Hai Duong to Quang Ngai, Nghe An, Hai Phong… At the beginning of this year, VSIP decided to invest in a third industrial zone in Binh Duong, with a total registered capital of 284.75 million USD.

Not only VSIP, many other Singaporean investors have also succeeded in Vietnam and are continuing to boost investment. Last year, Mapletree Investment Pte Ltd decided to acquire Kumho Asiana Plaza Saigon in District 1, Ho Chi Minh City from Kumho Industrial Company Limited and Asiana Airlines Incorporated. After this deal, Mapletree’s assets in Vietnam amounted to more than 1 billion SGD.

Prior to Mapletree, Keppel Land has also acquired 40% of the Empire City project in District 2, Ho Chi Minh City, equivalent to 93.9 million USD. Not to mention, many other Singaporean enterprises have also invested much in Vietnam, such as Banyan Tree with Laguna Lang Co project, total capital of 875 million USD; or KinderWorld with a series of international schools in many provinces, cities and is continuing new investment plans…

Not stopping with the current results, Singaporean enterprises are still quietly looking for new investment opportunities in Vietnam. The fact that UOB opened a subsidiary in Vietnam is to serve the purpose of investing more and more in Vietnam of Singaporean enterprises.

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TATA Build Instant Coffee Factory in Vietnam

Vietnam has always been an attractive market for foreign enterprises to come and set up business in Vietnam and most recently, TATA Coffee Ltd – a subsidiary of TATA Group has become the first company in India building instant coffee factory in Vietnam.

TATA Coffee is a wholly-owned subsidiary of TATA Global Beverages (TATA Group) – Asia’s largest coffee company and one of the largest instant coffee exporters in India.

The ground-breaking ceremony of instant coffee factory in Vietnam marked the beginning of a coffee factory project with capacity of 5,000 tons of instant coffee per year of TATA Coffee Ltd in VSIP II Industrial Park (Binh Duong).

TATA Coffee Factory is set to start production in 2019, aiming to serve its global clients with a new mix of instant coffee.

According to CEO of TATA Coffee Ltd, TATA Group has a close relationship with Vietnam in various fields such as automobile, steel, trade, energy and watches. With this investment, the beverage industry will also become a major area of TATA’s participation in the investment here. Although TATA’s products have been exported to more than 40 countries around the world, instant coffee so far has only been produced in India.

Vietnam has marked TATA’s first breakthrough outside the Indian borders as a manufacturer, so this is TATA’s milestone on the journey to become a global company specializing in coffee. TATA Coffee will make every effort in coffee processing operations with a special focus on safe working conditions. The project will contribute positively to foreign exchange earnings and create more local jobs.

It is reported that Vietnam is currently the world’s largest producer of Robustas, which is conducive to providing a favorable raw material for the plant.

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Foreign Investors Implement Food Projects in Vietnam

Foreign investors who are licensed to invest in the food sector in Ho Chi Minh City are in the process of implementing the project, while other projects are interested by foreign partners. It shows the excitement of investors when deciding to set up business in Vietnam.

In particular, project of Nam Duong International Food Co., Ltd with registered capital of 25.6 million USD has completed the construction of the factory, installation of equipment and machinery. The project is licensed by the end of 2015, which is a joint venture between the Saigon Co-operative Alliance (Saigon Co.op) and Wilmar International Limited (Singapore), with the capital contribution of 49% and 51% respectively. The project aims to produce sauces and spices for domestic and export markets.

Wilmar’s investment in Vietnam and cooperation with Saigon Co.op is to utilize strengths from both sides to improve the competitiveness and coverage of Nam Duong brand as well as contribute significantly to the development of the sauce and spices industry.

Meanwhile, the project of CJ Cau Tre Foods Joint Stock Company, with investment capital of 53.3 million USD, which was licensed by the end of May 2017, is being expedited by investors to implement the procedures under regulations to prepare to start construction.

This is a food processing complex on an area of 7.1 ha, including food processing plant, research and development center, modern food safety center… The 1st phase of the factory has designed capacity of 12,000 tons of products per year, which will be consumed domestically and exported to markets such as Korea, Japan, USA, EU…

The project is invested by CJ Cheiljedang Corporation (Korea) through the ownership of 71.6% stake in Cau Tre Export Processing Joint Stock Company.

We can see that, in recent times, many foreign investors have approached the market by acquiring or holding controlling shares in local companies and it is forecasted that this trend will continue.

In terms of attracting investment in the coming time, Ho Chi Minh City has many incentive policies for projects in 4 key industries, which are food processing, chemicals – rubber, mechanical and electronic – information technology. The field of food processing has received a lot of attention from many foreign investors and the fact that many large-scale investment projects have been licensed.

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Tokyo Gas Wants to Build LNG Cai Mep - Thi Vai Port

Tokyo Gas (Japan) desires to invest in Vietnam, together with Vietnam partner to build LNG Cai Mep – Thi Vai port to become the most modern facility in Vietnam in this field.

On August 15th, Vietnam Prime Minister Nguyen Xuan Phuc has met Mr Michiaki Hirose, General Manager of Tokyo Gas (Japan).

At the meeting, the Prime Minister highly appreciated Tokyo Gas’s establishment of representative office in Vietnam; he also congratulated Tokyo Gas and PV Gas (Vietnam) for jointly establishing a business operating in the field of LNG gas in Vietnam and welcomed Tokyo Gas to launch a promising cooperation program with Vietnam.

In fact, the demand for liquefied petroleum gas in Vietnam is huge, especially in cities and coastal areas, the Prime Minister believes that with good partners, environment and demand, Tokyo Gas will succeed in Vietnam. Furthermore, many Vietnamese businesses are eager to do business with Japanese companies because of their great prestige, experience and resources.

Vietnam Prime Minister affirmed that oil and gas cooperation is one of the priority areas for Vietnam and Japan’s economic cooperation, at the same time Vietnam wishes that Tokyo Gas will maintain long term business in Vietnam.

According to Mr Michiaki Hirose, Tokyo Gas will strengthen its cooperation with PV Gas in the coming time and hope that Vietnam Government will support this cooperation. He also hoped that Tokyo Gas together with Vietnamese partner will construct LNG Cai Mep – Thi Vai port to become the most modern facility in Vietnam in this field.

With Japan, Vietnam is considered as an important partner in energy cooperation, including LNG. Japan – Vietnam cooperation will create a good premise for Tokyo Gas to implement the project in Vietnam. In that process, Tokyo Gas needs support from the Government of Vietnam on mechanisms and policies.

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Ben Tre Welcomes Investment Projects

With the trend that many foreign enterprises come and set up business in Vietnam, recently, many investors have come to Ben Tre – the land of coconut to promote investment projects in various fields, with investment capital of tens of thousands of billion VND.

In addition to transport infrastructure, high quality coconut processing plant projects; projects in the field of tourism with the system of restaurants, hotels and resorts…, TTC Corporation is continuing to invest in the energy sector in Ben Tre province. Mekong Wind Power JSC (a member of TTC Corporation) has just been granted the investment decision by Ben Tre Provincial People’s Committees to invest in Binh Dai Wind Power Plant. The project has capacity of 30 MW with a total investment capital of 1,490 billion VND.

Moreover, the TTC Corporation also propose that Ben Tre province continue to create conditions for TTC to participate in locality – farmer connectivity programs to improve their gardens and create sustainable coconut material areas; construct Ben Tre coconut research center in Dong Go…

In addition, many other projects have just been granted investment decisions in Ben Tre, such as Ba Tri Wind Power Plant No.7 of Ben Tre Renewable Energy JSC (Ecotech), with total Investment capital of 6,543 billion VND; Binh Dai – Ben Tre wind power plant of joint venture between Asiapetro Energy JSC and Doarm Engineering Company (Korea), with a total investment capital of 180 million USD; the food processing factory of The Gioi Viet Co., Ltd with a total investment of 34 million USD…

Highly appreciating the investment environment in Ben Tre, General Director of The Gioi Viet Co., Ltd said that Ben Tre is a good place to invest because there are good policies, land rent expense is not high, the administrative procedures are very easy and provincial leaders are taking good care of businesses. Moreover, Ben Tre has abundant raw coconut materials to meet the production needs of enterprises; hardworking workers who have high sense of responsibility for their work.

According to the Chairman of Ben Tre Provincial People’s Committees, with the effort of creating sustainable development, Ben Tre province will continue to improve the investment and business environments and accelerate the reform of administrative procedures. Coming to Ben Tre, investors will be given the most favorable conditions to approach and successfully implement their investment projects. Coming to Ben Tre is coming to a land that rich in potential, rich in affection and diversity of industries with many investment opportunities. Coming to Ben Tre, investors will realize that this place is really a reliable, safe and convenient destination with many opportunities for development.

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Bosch Invested More Capital in Dong Nai Province

Bosch is now the largest German investor in Dong Nai with an investment of hundreds of millions of dollars, creating more motivation for other foreign investors when deciding to set up business in Vietnam.

After two consecutive years of investment expansion, Bosch Corporation (Germany) plans to pour an additional of 47 million USD into Dong Nai province to diversify its products for the ongoing urbanization and industrialization process in Vietnam, which is happening strongly. This corporation is known to pour capital into a plant in Dong Nai.

In recent years, Bosch has continuously increased investment capital for its factory in Dong Nai. Specifically, in 2015 and 2016, Bosch increased additional capital of 23 and 22 million USD respectively. According to a Bosch representative, these investments are to import more machinery and production lines to meet growing demand for power transmission belts in Southeast Asian and Asian auto manufacturers.

Currently, there are 4 projects in the field of high technology in Dong Nai, in which the Bosch’s has the largest registered capital. Accordingly, the most recent revision of Bosch’s investment certificate in Dong Nai is November 2016. By that time, the total registered capital of this project was over 365 million USD.

The process of urbanization and industrialization in Vietnam is happening strongly and the whole country is moving towards a smart economy. That is a great opportunity for Bosch to diversify its products, especially in the area of connectivity solutions for 4.0 smart and industrial cities.

According to the study, the continuous expansion of investment in recent years has allowed the Bosch plant in Dong Nai to localize the whole process of power transmission production. At the present, all products made from this factory are exported.

Bosch’s localization of its entire production process and its continued investment capital increasing are creating opportunities for other Vietnamese manufacturers to become part of Bosch’s global production chain. However, becoming a supplier for a high-tech business like Bosch will not be easy.

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