The northern coastal province of Quang Ninh has asked investors to complete documentation for four projects with a total registered capital of $349 million.
The Quang Ninh Economic Zone Authority (QEZA) says the four projects are: a $200 million project for high voltage electricity and electric actuator production in Song Khoai Industrial Park; a $46 million project for production of aluminum and magnesium alloy in the same park; a $60 million project for developing the workshop zone No.3 at Texhong Hai Ha Industrial Park phase 1; and a $43 million project for production of protective gloves at the same park.
In the first six months of this year, Quang Ninh attracted $832.2 million in registered FDI capital, fulfilling 70% of the year target of $1.2 billion. It also lured VND44.02 trillion ($1.86 billion) in domestic investment.
The Quang Ninh Investment Promotion Agency (IPA) attributes this achievement to the province’s proactive approach. So far this year, the provincial authorities have received many investors including Japan’s Yaskawa Electric Corporation targeting a $100 million factory on 12 hectares at the Song Khoai Industrial Park and Tenma Corporation, another Japanese firm, planning a 18-hectare plastic molding plant worth $150 million.
The provincial IPA has also worked with South Korea’s Mastern Investment Management; a business delegation from Hong Kong; a Seoul Chamber of Commerce and Industry (Seoul CCI) delegation with 20 businesses; the Japan-Mekong committee under the Japan Chamber of Commerce and Industry (JCCI); Japan’s Ministry of Economy, Trade and Industry (METI); and Japanese multinationals Sojitz and Toshiba.
The IPA has focused its efforts on sectors where Quang Ninh has competitive advantages, including production of electronic equipment and components, seaport and seaport services, fisheries production and processing, and logistics.
Quang Ninh has attracted 13 South Korean-invested projects with a total registered capital of $97.8 million in the year to date, including five within and eight outside industrial parks and clusters.
Notably, the province has attracted investments from Denmark and Sweden for the first time, in addition to traditional investors from Japan, South Korea, Singapore, Taiwan and Hong Kong.
A high-tech hub
The province aims to attract international investors to transform its industrial parks and economic zones into a hub of electronic and automobile components. For example, Sweden’s Autoliv, Inc., a global leader in automotive safety systems, plans to build a new state-of-the-art airbag cushion and fabric plant worth $154 million; and South Korea’s Samsong Vina has invested $10.3 million in building a seatbelt factory.
The Bac Tien Phong Industrial Park has also attracted two automobile component projects: Taiwan-invested Boltun Vietnam plans a $165 million locking and stamping plant, with an annual capacity of 60,000 tons; and Xiamen Sunrise Group Co.,Ltd., a top wheel manufacturing group from China, has been approved to invest in a $55-million project to produce automobile rims using light metals.
A few days ago, on June 29, Quang Ninh granted investment certificates to two projects with a total registered capital of $246 million proposed by Apple supplier Foxconn, just 12 hours after the applications were submitted. The normal processing time is 14 days.
Both projects will be located in the Song Khoai Industrial Park, invested by Thailand’s biggest industrial developer Amata. The 6.3-hectare FECV Foxconn Quang Ninh factory, with an investment of $200.24 million, is set to begin operations in January 2025, employing 1,200 people. The factory will manufacture and assemble electronic components, chargers, and charger controllers for electric vehicles.
The 4.1-hectare FMMV Foxconn Quang Ninh plant, with an investment of $46 million, is scheduled to begin operations in October 2024, employing 700 people. It will manufacture components for communications and IT products.
In the year to June 20, Vietnam had attracted $13.43 billion in registered FDI, down 4.3% year-on-year, according to the Ministry of Planning and Investment. The figure included $6.49 billion of newly registered capital, up 31.3%; $2.93 billion of additional capital for operational projects, down 57.1%; and capital contributions for stake acquisitions worth $4.01 billion, up 76.8%.