Successful Destination for U.S. Businesses

Vinh Phuc province is an attractive destination for investors from the United States and other countries, thanks to its strategic location, open and supportive business environment, abundant and skilled workforce, and modern and integrated industrial zone infrastructure. Several U.S. projects have invested in Vinh Phuc’s industrial parks, contributing to the province’s economic development and social welfare.

Chairman of Vinh Phuc Provincial People’s Committee Le Duy Thanh attends the groundbreaking ceremony of Polaris Vietnam Factory 

One of them is Weldex Vina Co., Ltd, which established its first U.S. project in Ba Thien II Industrial Zone in May 2019. The company, with a total investment capital of US$10 million, produces plastic products, electronic components, optical instruments, spare parts and accessories for motor vehicles. Another U.S. project is Vietnam Safety Equipment and Products Co., Ltd, which started its operation in March 2020. The company manufactures and processes helmets, paper and plastic products; and medical equipment for dentistry, orthopedics and rehabilitation. The company has exported millions of products to the U.S. and European markets and created stable jobs for more than 200 workers with an average monthly income of VND8 - 10 million. The company’s representative said that Vinh Phuc’s favorable investment policies and convenient transportation system were the main reasons for choosing the province as an investment destination.

The most recent U.S. project in Vinh Phuc is from Polaris Inc., a Top 500 U.S. firm, that assembles motorbike, automobile and vehicle engines. The project, located in Ba Thien II Industrial Zone, is the group’s second factory in Vinh Phuc and the 20th factory worldwide. The project has a total investment capital of US$30 million and was approved and licensed by Vinh Phuc province within just a week. The firm will assemble large displacement motorcycles and will annually earn US$100 million in early years and US$500 million by 2030. Mr. Dalton Pierce, Vice President of Polaris Inc., expressed his appreciation for the active support from governmental agencies at all levels in Vinh Phuc and hoped to receive more assistance for production factory expansion in the future.

Vinh Phuc province has attracted three U.S. projects with a total investment capital of US$46 million, mainly in export processing. This is a modest figure compared to the US$7.6 billion of FDI funds from more than 450 projects from 20 countries and territories in the world, but it shows the growing interest of U.S. investors in Vinh Phuc. The province is actively conducting various promotional events to attract more U.S. investment. Therefore, we are confident that Vinh Phuc will welcome more U.S. projects in the future.

As part of its FDI Attraction Strategy for 2022-2030, Vinh Phuc aims to attract an additional US$2-2.5 billion of FDI funds; attract 1-5 Global Top 500 multinational corporations; and increase the proportion of investment capital from Japan, South Korea, Singapore, France, Germany, the United States, Russia and other countries to over 80% by 2030. The province will focus on promoting investment in technological and financially strong countries, with the U.S. as a priority market. The province will also instruct relevant agencies and localities to be flexible and diverse in attracting investment. Vinh Phuc will also support existing investors to introduce their potential and prospective partners to the province.

Moreover, Vinh Phuc will accelerate the construction progress of industrial zones approved by the Government; reform and simplify administrative procedures; advance digital transformation to make procedures public and transparent, reduce time and costs for companies; and assist post-licensed projects to promptly resolve difficulties and challenges so as to create the most favorable business environment for all companies.

By Manh Dung,Vietnam Business Forum