The booming tech industry has contributed remarkably to Vietnam’s economic growth and exports with the emergence of big foreign investment playing a pivotal role However, to meet the needs of foreign investors, experts believe a significant improvement in infrastructure is required.
The world’s largest manufacturer of printer circuit boards and electronic assemblies, Japan’s Meiko Electronics Vietnam Co, Ltd, recently announced plans to construct a third electronics plant in Vietnam, with investment in the project totaling more than US$50 million.
The presence of major electronics groups is forecast to generate further investment in the area, with a large number of other foreign businesses considering production ventures in Vietnam.
So far more than US$10 billion in FDI capital has been drawn in with major brand names such as Samsung, Foxconn, LG, Panasonic and Intel all investing.
In 2006, when Meiko first invested in Vietnam, it decided to select TNI Holdings Vietnam as its partner to cooperate in developing its first electronics plant in Thach That Industrial Park.
Meiko’s project was one of the ten biggest FDI projects in the country in 2006 and the largest foreign electronics production project at that time.
Statistics from the General Department of Vietnam Customs show that Vietnam’s exports in the first eight months of this year surged an impressive 19.3% to US$21.9 billion when compared against the same period last year. 20 goods groups hit more than US$1 billion in export turnover, including five goods groups achieving a turnover of over US$5 billion.
General Department of Vietnam Customs said phones and components exports in particular increased 18% to nearly US$27 billion against last year’s corresponding period, the highest figure so far.
According to the latest assessment by the Ministry of Industry and Trade, the high growth of such groups as mobile phones and components and computers, electronic components has driven production up to 25%.
Despite the good news, many foreign investors are concerned with the state of the current infrastructure facilities in Vietnam, which so far lacks integration and synchronicity.
They highlighted the need to further upgrade the existing infrastructure in order to both meet the demands of existing foreign investors and attract new FDI businesses.
Nguyen Phi Hung, Chair of TNI Holdings Vietnam said his group has attracted more than 400 investors operating in industrial parks, including 300 foreign investors from Japan, China, the US, Germany, the Republic of Korea, Thailand, Hong Kong and Taiwan.
With the growing number of investment projects each year, TNI plans to expand more investments in new industrial parks (IPs) such as Que Vo 3 (Bac Ninh province), Dong Van 3 (Ha Nam province), Bim Son (Thanh Hoa), Minh Quang (Hung Yen) and other IPs in some northern provinces in the near future.