Despite slowing global economic growth, foreign investors tend to be more cautious about new investments or investment expansion. However, Vinh Phuc province successfully attracted roughly US$360 million in the first six months of 2023, up 60.5% year on year and equal to 90% of the full-year plan. This shows that Vinh Phuc continues to be a safe and reliable destination for investors.
Groundbreaking Ceremony for Polaris Vietnam
Many large investment projects were licensed by the province in the first half of 2023, particularly in the high-quality processing and manufacturing industry and high-tech agriculture. For example, Vilico Company (member of Vinamilk Corporation) and Sojitz Group of Japan started construction on a VND3,000 billion Vinabeef cow farming and beef processing complex in Tam Dao district on March 8, 2023. This is the first project in the US$500 million investment and cooperation plan on high-tech agriculture - cow farming and beef processing, signed at the end of 2021 by leading corporations of Vietnam and Japan.
Piaggio Vietnam Ltd invested US$75 million to expand its production scale. The wholly Italian-invested company, which arrived in Vinh Phuc in 2007, manufactures and trades high-class scooters. Covering 18 ha of land in Binh Xuyen I Industrial zone, its two projects came into operation in June 2009 and November 2012, respectively. To expand investment, develop production and restructure its projects, Piaggio Vietnam merged two projects, while raising its investment fund from US$90 million to US$165 million to scale up its annual output from 250,000 scooters and 300,000 engines to 400,000 scooters and 400,000 engines, making its facility in Vinh Phuc the most important one of Piaggio Group in the world.
On May 17, Polaris Vietnam Co., Ltd held a groundbreaking ceremony to start construction on its new factory in Ba Thien II Industrial Zone. Costing more than US$40 million, the 12-ha factory will manufacture motorcycles and components for automobiles and other motor vehicles. The facility has an annual output capacity of 30,000 products, planned to be exported to Asian and Pacific countries. Scheduled for completion in January 2024, it will employ about 600 local workers and positively contribute to local economic growth.
To achieve such impressive investment attraction results, in addition to strengthening external investment promotion, Vinh Phuc actively stepped up local investment promotion by supporting, guiding and facilitating existing companies; and organized dialogue conferences and exchanges with them to seek solutions to their existing business difficulties and obstacles. By doing so, the province has built up the strong trust of investors in their long-term investment in the province.
By Thanh Loan, Vietnam Business Forum
Vietnamese
