FDI flow into Nghe An province may nosedive by half in 2024

Vietnam’s central province of Nghe An is expecting to draw 15-20 foreign-invested projects with total registered capital of $710 million this year, only half of the 2023 figure, according to the local Department of Planning and Investment.

It received over $1.6 billion in foreign direct investment (FDI) in 2023, surpassing the year’s target by 121%. Of this total, $1.32 billion came from 19 new projects, while the remaining was from additional investments.

The province has welcomed a host of foreign-invested projects over the past year, placing it among the top 10 recipients of FDI in Vietnam.

Outstanding tech and electronics projects include the $293 million silicon rod and semiconductor platter factory by the Thailand-based Runergy PV Technology Co., Ltd., the $165 million electronics project by China’s Innovation Precision in VSIP Nghe An Industrial Park, the $150 million Sunny Optical Automotive Vina project by Hong Kong-based Summit Optical Investment Limited, and the $115 million Everwin Technology factory.

Last year, FDI enterprises in the province posted $850 million in revenue, up 11.88% year-on-year; $1.05 billion in export value, up 27.28%; and $731.7 million in import expenditure, up 41.58%.

They contributed $11.09 million to the state budget and created 39,145 workers, up 4.35%.

In the coming time, Nghe An will prioritize FDI projects that offer high added value and modern technologies, especially in high-tech sectors, supporting industries, material manufacturing, banking and financial services, education, agricultural biotechnology, infrastructure development, and logistics, according to the department.

The province may neither extend the operations nor allow the expansion of projects that use outdated technologies, cause environmental pollution, or intensively exploit local minerals.

It will focus on luring FDI to Dong Nam Nghe An Economic Zone, VSIP Industrial Park Nghe An, WHA Indistrial Zone 1 - Nghe An, Hoang Mai IP, Dong Hoi IP, and industrial clusters in disadvantaged areas.

Nghe An aims to clear hurdles for key projects, including the VSIP IP, the second-phase WHA IP, the Cua Lo and Dong Hoi seaports, and housing projects for workers.

It will strengthen promotions to attract investments from Northeast Asia (mainland China, South Korea, Japan, Hong Kong, Taiwan), Thailand, Singapore, Australia, the U.S., and EU member states.

The provincial government will step up support for major projects run by Luxshare ICT, Goertek, Everwin, JuTeng, Foxconn, Runergy, and others.