Bac Ninh overtakes HCM City to become Vietnam's FDI champion
Following the administrative merger, the northern province of Bac Ninh catapulted to the top of Vietnam's foreign direct investment (FDI) rankings in the first eight months of the year, overtaking Ho Chi Minh City.
While news of Goertek Vina's decision to halt operations at its audio and multimedia products manufacturing plant in Bac Ninh continues to surprise many observers, the company remains one of the province's largest investors to date.
Since entering Vietnam in 2013, China’s Goertek, a manufacturing partners of Apples’ AirPods, has built four factories in Bac Ninh with registered capital of more than US$1.3 billion. Most recently, it poured additional US$130 million to its project at Nam Son – Hap Linh Industrial Park, raising its total investment there to US$540 million.
Goertek Chairman Jiang Bin revealed during meetings with local authorities that the corporation has plans to expand its factories in Vietnam, including Bac Ninh.
Beyond Goertek projects, the province presented investment certificates to China-based Luxshare-ICT’s smart phone production project worth US$300 million while Foxconn continues investment in the locality.
As of the end of August, Bac Ninh lured US$4.68 billion in FDI, as compared to nearly US$4.4 billion injected to the southern economic hub, which also leverages the FDI magnets of Binh Duong and Ba Ria – Vung Tau.
According to the Ministry of Finance’s Foreign Investment Agency, the merger of Bac Ninh and Bac Giang is seen as a strategic move to shape up a close-looped electronic manufacturing chain, spanning from component processing to final product assembly and export.
Already the FDI capital of northern Vietnam with major projects from Samsung, Canon, and Goertek, Bac Ninh has doubled its strength following its merger with Bac Giang, another magnet for global investment flows with commitments from Foxconn, HanaMicron, and Luxshare.
Chairman of the provincial People’s Committee Vuong Quoc Tuan said that the province will continue improving its investment climate, promoting administrative reform, and removing bottlenecks for investors to attract more FDI projects.
Following the mergers, the rankings of FDI capitals have undergone significant changes. Rounding out the top ten included Hanoi (US$3.8 billion), Dong Nai (US$2.654 billion), Hai Phong (US$1.7 billion), Tay Ninh (US$1.56 billion), Ninh Binh (US$1.533 billion), and Hung Yen (nearly US$1.4 billion).
Rising FDI solidifies Vietnam’s standing as global strategic destination
VOV.VN - Surging foreign direct investment (FDI) attraction and ongoing business reforms are positioning Vietnam as a strategic investment destination for global corporations.
