2023: energy, electronics sectors shine bright as Vietnam attracts huge foreign investments
Energy and electronics sectors hogged the limelight as registered foreign direct investment (FDI) in Vietnam reached $36.6 billion this year through December 20, up 32.1% year-on-year.
The mega projects and acquisitions that attracted foreign investors included LNG-fuelled power plants, production of semiconductors, camera modules, carbon fiber, biofiber and automobile tyres, as also banks and hospitals.
Japanese firm joins $1.99 bln LNG power plant project
A joint venture between Tokyo Gas, Kyuden International, and Truong Thanh Vietnam Group was handed an investment license to build a $1.99-billion LNG-to-power plant in the northern province of Thai Binh.
The joint venture received the investment certificates at the Vietnam-Japan Economic Forum held earlier this month in Tokyo. Present on the occasion was Prime Minister Pham Minh Chinh, who was on a four day (December 15-18) visit to Japan.
The plant will cover 269.4 hectares and have two turbines with a combined capacity of 1,500 MW. The first turbine is scheduled to enter commercial operation in the last quarter of 2028 and the second one in the fourth quarter of 2029.
American energy AES firm invests in $1.4 bln LNG terminal
A joint venture between American energy firm AES Corporation and Petrovietnam subsidiary PV Gas was granted investment approval by Binh Thuan province in July for the $1.4 billion Son My LNG Terminal project.
The terminal, to be built by Son My LNG Terminal Project Company, will have an installed capacity of 450 TBtu and is expected to begin commercial operations in 2027, AES said.
In August, Binh Thuan authorities granted investment certificates to six investors in four projects within the LNG-to-power chain in the south-central Vietnam province. The chain, located at the Son My 1 Industrial Park, includes the Son My LNG Terminal project; Son My power center project, a project to connect the Son My power center to the national grid; and the Son My-Phu My gas pipeline project.
Japan’s SMBC acquires 15% VPBank stake for $1.5 bln
In October, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) completed acquisition of a 15% stake Hanoi-based VPBank for $1.5 billion, making it the largest M&A deal in the Vietnamese banking system so far. The deal makes SMBC, Japan’s second-largest bank, a strategic shareholder of the Vietnamese bank.
The deal was part of the capital expansion plan that VPBank initiated in 2022. After the share sale, VPBank’s owner equity increased from VND103.5 trillion ($4.22 billion) to approximately VND140 trillion ($5.7 billion).
LG to invest $1 bln more in Hai Phong
LG Innotek’s 17.2-hectare factory at the Trang Due Industrial Park in Hai Phong city entered operation in September 2017 with an initial investment of over $1 billion and about 3,500 staff to produce camera modules. With the additional investment, the company will build a new plant to manufacture and export camera modules, employing another 2,600 people.
The company, the electronic component arm under South Korea’s giant LG, is scheduled to complete construction of the plant in the second half of 2024 and start commercial operations in 2025.
The additional $1 billion will double LG Innotek's investment in the northern coastal city to $2.05 billion.
Hyosung invests $540 million carbon fiber factory in Ba Ria-Vung Tau
In October, South Korean giant Hyosung received in-principle approval from Ba Ria-Vung Tau's industrial park authority to build a $540 million carbon fiber factory in the southern coastal province.
The 19.2-hectare project, located at the Phu My 2 Industrial Park, will have a first phase investment of $120 million, said Kim Kyung Hwan, CEO of Hyosung Vietnam Co. Ltd. This will be Hyosung’s first carbon fiber plant in Vietnam, he added.
In July, Hyosung Vietnam said it planned to invest $1 billion in a carbon fiber factory at the Phu My 2 Industrial Park, Ba Ria-Vung Tau province. The investment in the initial phase would be about $160 million, the firm said, urging provincial authorities to support it in completing legal procedures.
In December, Hyosung said it planned to invest $720 million in the southern province of Ba Ria-Vung Tau for a biofiber factory. This is set to become the world’s first project to use raw sugar to manufacture biofiber, a material used for spandex fiber, the executive added.
Japan’s Aeon to invest $500 mln in two malls
Japanese retailer Aeon will invest $500 million in building two $250 million malls, one in the northern province of Bac Giang and another in the Mekong Delta city of Can Tho. Two memoranda of understanding to this effect were signed between the Japanese firm and the two provinces under the auspices of the Vietnam-Japan Economic Forum held in Tokyo this month.
There are six Aeon Mall outlets in Vietnam: two each in Hanoi and Ho Chi Minh City, and one each in the southern province of Binh Duong and northern city of Hai Phong. Per its medium-term (2023-2025) plan, the company will open more outlets in Vietnam, including one in the central province of Thua Thien-Hue. Construction of Aeon Mall Hue began in February and a grand opening is planned in the second half of 2024.
The retailer has so far invested more than $1.18 billion in Vietnam, Aeon Group executive chairman Akio Yoshida said at a meeting with Vietnamese Prime Minister Pham Minh Chinh in Japan’s Hiroshima last May.
Chinese tiremaker Haohua to invest $500 mln in Binh Phuoc
China’s Shandong Haohua Tire has received an investment certificate to build a $500 million factory in the southeastern province of Binh Phuoc. Under the investment registration certificate granted in September, the firm will build a factory covering 43 hectares at the Minh Hung Sikico Industrial Park. Construction is set to begin in the first quarter of 20.
The plant’s annual output will include 2.4 million packs of steel radial tires and 12 million packs of half steel radial tires for trucks and other vehicles, with total output worth an estimated $770 million. The firm expects to employ 1,600 local people and 200 expatriates.
Once operational from the third quarter of 2025, the factory is set to consume nearly 120,421 tons of natural and synthesized rubber a year, including 96,506 tons sourced from Vietnam and the rest imported from China.
Singapore’s Thomson Medical to acquire Vietnam’s FV Hospital for $381 million
In July, the Singapore-headquartered Thomson Medical Group said it has agreed to buy France-backed FV Hospital in Ho Chi Minh City for $381.4 million.
This is the biggest-ever hospital acquisition deal in Vietnam. “The deal highlights the growing significance of Vietnam’s burgeoning healthcare (industry),” the Singapore-listed company said.
Thomson Medical Group will pay about $359.6 million upfront and another $21.8 million should FV Hospital meet certain performance milestones, it said.
Far East Medical Vietnam Ltd., also understood as the FV Group, currently has over 1,600 staff, including more than 200 Vietnamese and expatriate doctors. It also operates, since 2013, an outpatient clinic known as FV Saigon Clinic at the heart of District 1, HCMC’s heart.
Hana Micron opens $600 mln semiconductor plant, northern Vietnam’s first
In September, South Korea’s Hana Micron Vina Co., Ltd inaugurated a semiconductor plant in Bac Giang province, the first of its kind in northern Vietnam.
The new project, located at the Van Trung Industrial Park, is the second Bac Giang-based factory run by Hana Micron Vina, which manufactures integrated circuit boards used for mobile phones and other smart electronic products. The first factory began operations in 2022.
Choi Chang Ho, chairman of the company, said Hana Micron Vina plans to increase its total investment to over $1 billion in 2025, generating annual revenues of $800 million and creating 4,000 jobs for Vietnamese workers.
Hana Micron Vina will be the number one production facility in Hana Micron Group's global business operations, and its personnel in Vietnam will account for 70% of its total workforce, he said, adding the company expects a revenue of $300 million this year.
American firm opens mega semiconductor facility in Bac Ninh
In October, U.S.-based Amkor Technology Inc., a leading provider of semiconductor packaging and test services, held a grand opening for its newest factory in Vietnam’s northern province of Bac Ninh.
The Vietnamese facility is Amkor’s most extensive facility, covering 57 acres (23.1 hectares) in Yen Phong 2C Industrial Park. Beginning with Advanced System in Package (SiP) and memory production, the factory will offer turnkey solutions, from design to electrical testing.
Amkor has committed $1.6 billion for the two phases of the project, including $520 million in the first phase, to develop the facility into Amkor’s most advanced, delivering next-generation semiconductor packaging capabilities.
According to the investment certificate granted to Amkor in December 2021, the factory will have an annual output of 600 million items a year, equivalent to 210 tons, in the first phase. The second phase will double that output.
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Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year
Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.
Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7
Vietnam likely to grow 6.5% in 2024-2025: VinaCapital
VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.
Economy - Sat, November 2, 2024 | 2:00 pm GMT+7
Major Vietnamese developer Novaland appoints new CEO
Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.
Companies - Sat, November 2, 2024 | 10:24 am GMT+7
Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3
Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.
Bamboo Capital - Sat, November 2, 2024 | 9:41 am GMT+7
ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout
Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.
Companies - Sat, November 2, 2024 | 9:13 am GMT+7
Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex
Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.
Industries - Sat, November 2, 2024 | 8:00 am GMT+7
Vietnam becomes Australia’s fastest-growing inbound market
The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.
Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7
Study finds shift in Thai consumers’ spending patterns
Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).
Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7
Energy security, digitalization key to Indonesia's economic growth
The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.
Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7
Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM
Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.
Politics - Fri, November 1, 2024 | 9:25 pm GMT+7
Vietnam, Qatar look to tap potential for energy, oil & gas collaboration
Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.
Politics - Fri, November 1, 2024 | 9:02 pm GMT+7
Thailand bans export of raw palm oil until December
Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
Southeast Asia - Fri, November 1, 2024 | 8:31 pm GMT+7
Envision Energy to build $420 mln wind power plant in Vietnam from June 2025
Envision Energy Singapore Pte Ltd, under China-based Envision Energy, aims to kick off construction of the 300-MW Envision Nam Po wind power plant in Vietnam’s northern mountainous province of Dien Bien in June 2025.
Energy - Fri, November 1, 2024 | 8:30 pm GMT+7
Indonesia to ban plastic waste imports from 2025
The Indonesian government will start imposing a ban on the import of plastic waste from the beginning of next year, according to Minister of Environment Hanif Faisol Nurrofiq.
Southeast Asia - Fri, November 1, 2024 | 8:29 pm GMT+7
Islamic economy makes up 48% of Indonesia’s GDP
The contribution of Islamic business activities to Indonesia’s GDP has been estimated at 48%, local authorities reported at the 11th Indonesia Sharia Economic Festival (ISEF).
Southeast Asia - Fri, November 1, 2024 | 8:28 pm GMT+7
Restructured construction giant Tracodi gets set to execute ambitious plans
After changing its name and restructuring as a group, Tracodi Construction Holdings JSC (HoSE: TCD), a member of Bamboo Capital Group (HoSE: BCG), has completed a leadership shake-up and is poised to achieve rapid growth.
Bamboo Capital - Fri, November 1, 2024 | 4:43 pm GMT+7