International investor interest grows in Vietnam's clean energy, semiconductor sectors

By Lan Do
Wed, October 9, 2024 | 9:40 pm GMT+7

International investor interest in Vietnam’s priority sectors of semiconductors, AI and clean energy is showing robust growth, says Don Lam, founding partner and CEO of VinaCapital Group.

He was speaking Tuesday at the Investor Conference that VinaCapital organized in Ho Chi Minh City. 130 investors from five continents attended the event, an increase of more than 20% over last year, he said.

Don Lam, VinaCapital Group founding partner and CEO, speaks at the Investor Conference in Ho Chi Minh City, October 8, 2024. Photo courtesy of VinaCapital.

Don Lam, VinaCapital Group founding partner and CEO, speaks at the Investor Conference in Ho Chi Minh City, October 8, 2024. Photo courtesy of VinaCapital.

The investors were attracted to Vietnam for several reasons, including perceptions of a more stable market and increased confidence in its potential. In particular, they were keen on sectors like clean energy and semiconductor manufacturing, Don Lam said.

"Vietnam has a strategy to develop its semiconductor industry by 2030 and is actively seeking investment in this area. Investors here have expressed their interest and indicated they will conduct further research," he added.

Another sector drawing attention was data centers, Don Lam said, noting that a company from Singapore has expressed its desire to invest in Vietnam, contingent on the availability of clean energy.

"We're exploring ways to leverage this advantage to attract foreign companies. For instance, clean energy could be developed in the central region, but we need to assess the appropriate infrastructure."

He said many investors were particularly interested in renewable energy and development of the carbon credit market. Beyond capital investment, they also sought to connect Vietnam with the international community through technology transfer and knowledge sharing.

According to VinaCapital, about two-thirds of the conference attendees this time were investors looking to make indirect investment in Vietnamese companies. The remaining one-third were investors looking to make direct investment in data centers, AI, and semiconductor manufacturing.

Further interest rate reductions

Nguyen Hoai Thu, CEO of VinaCapital Securities Investment Fund, said at the conference that the US Federal Reserve's recent interest rate cuts have given the State Bank of Vietnam greater flexibility to manage inflation and exchange rates effectively.

While the average 12-month savings interest rate currently stood at 5% per year, Thu believed there was potential for further reductions.

"The Fed is expected to continue lowering interest rates several more times this year, which will create additional space for the State Bank to follow suit," Thu said.

She noted that foreign investors' net selling has gradually decreased. Data compiled by VinaCapital shows that in September, foreign investors net sold more than $100 million, down for the third consecutive month and about 17% of the peak tally in June.

"We think that foreign investors may return to the Vietnamese market to catch a new wave of price increases," Thu said.

On Vietnam's stock market upgrade, Thu said the country could attain “emerging market” status by 2025, which would officially take effect in 2026.

"With these positive factors, VinaCapital believes that foreign investors will return, and the stock market will show positive growth in the next 12 months, driven by profit growth," she added.

Comments (0)
  • Read More
Domestic consumption, public investment to drive Vietnam's 2025 GDP growth: Dragon Capital exec

Domestic consumption, public investment to drive Vietnam's 2025 GDP growth: Dragon Capital exec

Domestic consumption and public investment will be the primary drivers of Vietnam's GDP growth this year, says Le Anh Tuan, head of investment at Dragon Capital Group.

Economy - Mon, January 13, 2025 | 6:14 pm GMT+7

Southern Vietnam province drafts 10 MWt nuclear reactor plan

Southern Vietnam province drafts 10 MWt nuclear reactor plan

Vietnam’s southern province of Dong Nai is drafting a 1-to-500 ratio masterplan for a nuclear technology research center, with a 10-MWt nuclear reactor.

Energy - Mon, January 13, 2025 | 4:56 pm GMT+7

Major publisher donates books to Vietnamese community in northeastern Thailand

Major publisher donates books to Vietnamese community in northeastern Thailand

Vietnam Education Publishing House (VEPH) held an event in Hanoi on Friday to donate Vietnamese-language books to the Vietnamese community in northeastern Thailand through the Consulate General of Vietnam in Khon Kaen.

Companies - Mon, January 13, 2025 | 4:21 pm GMT+7

Ex-lawmaker Luu Binh Nhuong sentenced to 13 years in prison

Ex-lawmaker Luu Binh Nhuong sentenced to 13 years in prison

Luu Binh Nhuong, former vice head of the Vietnamese parliament’s Ombudsman Committee, has been sentenced by a first instance court to 13 years in prison for appropriating property and abusing positions and power to influence others for personal gains.

Society - Mon, January 13, 2025 | 3:52 pm GMT+7

Vietnam’s auto sales up 12.6% in 2024 to 340,142, VinFast biggest seller

Vietnam’s auto sales up 12.6% in 2024 to 340,142, VinFast biggest seller

Members of the Vietnam Automobile Manufacturers' Association (VAMA), not including VinFast and Hyundai, sold 340,142 units in 2024, up 12.6% year-on-year.

Companies - Mon, January 13, 2025 | 3:34 pm GMT+7

Vietnam banking sector shows positive outlook for 2025: VinaCapital

Vietnam banking sector shows positive outlook for 2025: VinaCapital

Vietnamese bank stocks significantly outperformed the VN-Index in 2024, and strong performance is expected this year, given the low valuation of bank stocks (1.3x P/B vs 16% ROE), write chief economist Michael Kokalari and senior bank analyst Thuy Anh Nguyen at VinaCapital.

Banking & Finance - Mon, January 13, 2025 | 2:20 pm GMT+7

Vietnam's key export sectors to benefit from rising USD/VND exchange rate

Vietnam's key export sectors to benefit from rising USD/VND exchange rate

Vietnam’s export sectors such as seafood, chemicals, oil and gas, plastics, textiles, wood, and tires are expected to benefit from the rising price of USD, according to securities brokers.

Finance - Mon, January 13, 2025 | 12:57 pm GMT+7

Vietnam’s first LNG-fired power plant conducts first fire

Vietnam’s first LNG-fired power plant conducts first fire

Nhon Trach 3, part of Vietnam’s first LNG-fired power project Nhon Trach 3 & 4, conducted its “first-fire” on Saturday, a major step towards commercial operation.

Energy - Mon, January 13, 2025 | 11:24 am GMT+7

Foreign funds charmed by Vietnamese stocks

Foreign funds charmed by Vietnamese stocks

After a stellar 2024, foreign funds continue to show optimism about the growth of the Vietnamese stock market in 2025.

Finance - Mon, January 13, 2025 | 8:23 am GMT+7

Invest in Vietnamese stocks with strong fundamentals amid downward trend, experts advise

Invest in Vietnamese stocks with strong fundamentals amid downward trend, experts advise

Investors should maintain a reasonable portfolio to mitigate risks or selectively invest in leading stocks with strong fundamentals as Vietnam’s benchmark VN-Index may continue to decline in the upcoming sessions, say experts.

Finance - Sun, January 12, 2025 | 6:57 pm GMT+7

MobiFone proposed to be transferred to Ministry of Public Security

MobiFone proposed to be transferred to Ministry of Public Security

State-owned telecom giant MobiFone might be managed by the Ministry of Public Security as per a plan recently submitted to the government by the Ministry of Home Affairs (MoHA).

Companies - Sun, January 12, 2025 | 2:05 pm GMT+7

Stock, real estate investment channels rated higher than gold: Dragon Capital exec

Stock, real estate investment channels rated higher than gold: Dragon Capital exec

Real estate and stock investment channels score 3.5 to 4 out of 5 compared to gold, which scores only 2 to 2.5, says Le Anh Tuan, head of investment at Dragon Capital Group, a leading foreign-run asset management firm in Vietnam.

Economy - Sun, January 12, 2025 | 9:58 am GMT+7

AI to be widely applied in electronic contracts: Viettel exec

AI to be widely applied in electronic contracts: Viettel exec

The application of AI in electronic contracts is expected to reduce costs, streamline work processes, and boost business efficiency, according to Nguyen Ai Lien, director of customer service at Viettel Group in Ho Chi Minh City.

Companies - Sun, January 12, 2025 | 9:00 am GMT+7

Japan retailer Aeon Mall earns $22 mln in Vietnam from Mar-Nov 2024, up 19%

Japan retailer Aeon Mall earns $22 mln in Vietnam from Mar-Nov 2024, up 19%

Aeon Mall reported an operating income of JPY3,434 million ($21.8 million) in Vietnam in March-November 2024 (first three quarters of fiscal year 2024), up 19.3% year-on-year.

Companies - Sun, January 12, 2025 | 8:00 am GMT+7

Samsung Vietnam earns $31.4 bln in 2024, down 10%  

Samsung Vietnam earns $31.4 bln in 2024, down 10%  

Samsung Vietnam, under South Korean chaebol Samsung, earned a revenue of $31.4 billion in 2024, down 10% year-on-year, the firm reported.

Companies - Sat, January 11, 2025 | 10:52 pm GMT+7

VinFast sets new monthly EV delivery record in Vietnam

VinFast sets new monthly EV delivery record in Vietnam

VinFast, an electric vehicle manufacturer under Vietnam's conglomerate Vingroup, delivered over 20,000 electric cars in December 2024, a 20% increase from the previous month and the highest monthly delivery for a car brand in the local market.

Companies - Sat, January 11, 2025 | 6:36 pm GMT+7