Growing Interest from Western European and American Investors in Vietnam
Vietnam is experiencing an increase in foreign direct investment (FDI) from Western European and American countries, particularly in the renewable energy sector, according to an official. In addition to traditional investors like Japan, South Korea, China, and Taiwan, new companies from Germany, the Netherlands, France, and Spain are entering the market, with a strong focus on renewable energy, stated Do Van Su, Deputy Head of the Foreign Investment Agency under the Ministry of Planning and Investment, during a forum.
U.S. businesses are also showing a growing interest in Vietnam. Representatives from the U.S. Semiconductor Industry Association, consisting of 32 members, recently visited Vietnam to explore investment opportunities, as stated by Su. Vietnam has been actively promoting renewable energy and semiconductor investment in recent years. The country has committed to achieving zero greenhouse gas emissions by 2050. Prime Minister Pham Minh Chinh has instructed government bodies to develop a plan to train up to 50,000 engineers and 100 experts in digital transformation and semiconductor manufacturing.
While traditional investors continue to express their trust in Vietnam, some challenges are deterring foreign investors. The lack of available land, particularly in Ho Chi Minh City, is a major concern, according to Dao Xuan Duc, Chairman of the Ho Chi Minh City Export Processing Zone and Industrial Park Authority Business Association. Delays in land clearance and compensation are the primary reasons for the shortage, he added. As a result, many investors are choosing to establish their factories in Dong Nai or Binh Duong Provinces instead of Ho Chi Minh City.