Investors from China, which covers mainland China, Hong Kong, Taiwan and Macau, are increasingly turning to Vietnam’s northern province of Bac Ninh as an investment destination as the supply chain shift gathers pace.
The province welcomed 78 fresh foreign direct investment (FDI) in the first two months of this year, a 169% increase from a year earlier. Of the figure, 46 came from mainland China, 14 from Hong Kong, nine from Singapore, official data showed.
The new investments were worth $199.1 million, up 51.3% year-on-year. In addition, foreign investors were permitted to increase their existing projects by $170.9 million and contribute $23.9 million in share acquisitions.
As such, the province attracted $383.9 million in FDI in the first two months of this year, making its 2024 FDI target of $1.1 billion feasible.
Given its proximity, Bac Ninh is appealing to investors from China and South Korea, particularly electronics and semiconductor manufacturers.
As of end-2023, the province had licensed more than 400 projects totaling over $900 million from mainland China, mainly in the fields of electronic devices, precision mechanics, and civilian industries, according to provincial data.
Earlier this week, Chinese chipmaker Victory Giant Technology Group and VSIP Bac Ninh 2 Industrial Park signed a land lease contract for 10 hectares to implement an $800 million investment.
Goertek Electronics Vietnam Co., Ltd., a subsidiary of Chinese electronics giant Goertek – a major supplier to Samsung and Apple, will open a $280 million factory in the province in the coming quarter.
Other Chinese investors in the province include Hoa Vi Holding Vietnam, Jie Yang Intelligent Technology, Kaiyuan Technology, Hong Shi Feng Electronic Technology (Vietnam), Nice-Mate Technology, Ecoliv Technology, and Fu Hong (Vietnam) Mechanical Electrical Equipment.
Bac Ninh now has 24 industrial park projects, with some 5,000 hectares available for investors.
To lure more FDI, provincial authorities will strive to address investors’ concerns related to infrastructure and land, the workforce, and administrative procedures.