Northern Vietnam province sees five-year registered FDI exceeds target by 181%

Quang Ninh province in northern Vietnam expects to attract $10 billion in registered foreign direct investment (FDI) in the 2021-2025 period, local authorities say.

They said at a recent press briefing that according to the province’s plan, registered FDI was expected to reach $2.5-3 billion in 2021-2025 and about $3-4.5 billion in 2026-2030.

FDI disbursement in the two periods was estimated at $1.5-2 billion and $2-3 billion, respectively.

However, current statistics show that from 2021 to end-June 2024, registered FDI had hit $8.43 billion, or 281% of the target for the 2021-2025 period. FDI disbursement in the same period reached $2.69 billion, or 134.5% of the plan.

Since 2019, Quang Ninh has worked with approximately 130 delegations of organizations, investors, and businesses looking to invest in the province.

These include multinational economic groups and well-known companies like Foxconn, Lite-on, Coremax and Boltun from Taiwan; Linko Solar from Hong Kong; TCL, Pacific Construction Group and Xiamen Sunrise from mainland China; Mitsubishi and Sojitz from Japan; Daewoo E&C and Samsung Engineering from South Korea; Autoliv from Sweden; and Maersk from Denmark.

In its FDI attraction strategy, Quang Ninh has focused on selective investment based on criteria including quality, efficiency, technology, and environmental protection.

It has prioritized attracting investment into tourism, services, environmental protection and high-value-added manufacturing industries (automobile and motorcycle manufacturing, agricultural equipment, shipbuilding), as well as electricity, electronics, and new materials.

It has also been encouraging organic and sustainable practices in agriculture, forestry and fisheries to leverage opportunities for scientific and technology transfer and application.

The province was committed to avoiding projects that pose environmental pollution risks or use outdated technology, officials said. They added that Quang Ninh was actively improving mechanisms and policies for industrial zones (IZs) and economic zones (EZs) to achieve its socio-economic development goals.

Currently, the province has five EZs with a total area of 375,171 hectares, including three in border areas and two in coastal areas.

To meet its development goals, Quang Ninh has planned an additional eight IZs, raising its total to 23, covering approximately 18,842 hectares, by 2030.

The provincial master plan has clearly defined priority industries and sectors for investment attraction in each IZ, facilitating transportation and goods circulation while reducing logistics costs. Quang Ninh’s IZs are primarily located in Quang Yen township, Hai Ha district and the towns of Ha Long and Mong Cai.

These areas boast developed transportation infrastructure, including the Ha Long-Hanoi expressway and the Cai Lan, Tien Phong and Hai Ha ports, along with the Mong Cai border gate.

Notably, the Quang Yen coastal EZ, located near the Hai Phong-Ha Long-Van Don-Mong Cai expressway and connected to China and Northeast Asian countries, has been identified as a key area for attracting large-scale FDI projects in high-tech processing and manufacturing.

The province, which shares a 119 kilometer border with China, currently hosts 188 FDI projects from 19 countries and territories, with total registered capital exceeding $14.6 billion.

These projects are mainly invested in IZs, focusing on high-tech and environmentally friendly sectors with high added value and engagement in global value chains.

They have created approximately 40,600 jobs and contributed hundreds of billions of VND (VND100 billion = $3.94 million) to the state budget annually.