Supporting industries have attracted the Foreign Direct Investment (FDI)

Provincial leaders, foreign investors, leaders of business associations, and Dong Nai Industrial Zones Authority-January 2021

By the end of June 2021, FDI enterprises have invested in 11 new projects in the field of supporting industry in the province with a total registered capital of nearly US$160 million, accounting for more than 60% of the total newly registered capital. In addition, there are many FDI enterprises have significantly increased their investment in field of supporting industry.

*Increasing supply for key manufacturing industries

 FDI enterprises in supporting industry focus on supporting 3 major fields, namely mechanical industry, electronics and textile and footwear industry. Products made will be consumed by enterprises in Vietnam and exported to many countries around the world. In which, two big capital projects, which are important for local economic development, are the Hansol Electronics Vietnam Hochiminhcity Co., Ltd. factory in Ho Nai Industrial Zone, phase 2 (Trang Bom District, Bien Hoa City) with investment capital of US$100 million USD, and the factory of Platel Vina Co., Ltd. in Amata Industrial Zone, Bien Hoa City, Dong Nai Province with an investment of US$30 million. Both of the above projects invest in the electronics field to supply their products to Samsung Group and a number of other enterprises in Vietnam.

Mr. Lee Sam, Director of Men-Chuen Vietnam Co., Ltd., in Giang Dien Industrial Zone (Trang Bom District), said: “Men-Chuen has just invested in a factory of about US$30 million in Nhon Trach 6 Industrial Zone (Nhon Trach District). The factory will produce yarns, fabrics and dyes, and the goods will be sold to textile enterprises in the province and other neighboring provinces. According to Mr. Lee Sam, in the past 4-5 years, textile and garment enterprises have tended to find sources of fabric and fiber materials in large quantities in the country, so enterprises have decided to invest remarkably in this industry. Accordingly, despite the Covid-19 epidemic, the company's production was still expanding and growing quite well.

Mr. Yu Hie Min, General Director of Platel Vina Co., Ltd. said: “The company belongs to Intops Group of Korea. The Group currently has 2 manufacturing plants in Vietnam, specializing in supplying electronic components for Samsung Corporation. After a period of investing in a factory in Ho Chi Minh City, the group chose to invest in Dong Nai about US$30 million to produce electronic components to meet the orders from Samsung and some other domestic and foreign enterprises.”

*Increase the production

 In the first 6 months of this year, Dong Nai exported nearly US$11.6 billion, accounting for about 6.5% of the total export turnover of the country, the supporting industry alone accounted for more than 60%. Besides, consumption of goods in the domestic market increased by over 10%.

Mr. Park Hyun Bae, Chairman of the Korean Business Association in Dong Nai, said that with the advantage of traffic system and being a large industrial production center of Vietnam, businesses investing in the supporting industry in the province will easily find partners to sign contracts to sell output products right in the area and neighboring provinces. Therefore, in the past 5 years, Korean enterprises have continuously invested in new and expanded investment in Dong Nai in the industrial field, especially the supporting industry, which has attracted a lot of businesses to invest in.

Currently, Korea continues to be the leading investor among more than 45 countries and territories investing in Dong Nai Province, followed by Japan. FDI enterprises investing in supporting industry have modern technology.

Mr. Watanabe Nobuhiro, Consul General of Japan to Ho Chi Minh City said: “The Covid-19 pandemic has greatly affected Japanese investment in Dong Nai Province. Currently, there are many Japanese enterprises who want to invest in the province in the field of supporting industry, but due to the difficulties in traveling, they cannot temporarily come to the province to invest. When the epidemic becomes well controlled, many Japanese businesses will come to the province to make investment."

FDI investors expect that in about next 5-8 months, Vietnam will have enough sources of Covid-19 vaccine to fully vaccinate people and the epidemic will decrease, limit the spread, and the trade with other countries will gradually become normally, they will come to Dong Nai to make new investments and increase capital to expand production plants.

                                                                        Vi Quan