VOV.VN - New investments into Vietnam by foreign-invested firms looking to expand their production capacity prove their confidence in the recovery of the country’s economy moving into the post-pandemic period.
Nestlé, the world's largest food & beverage company based in Switzerland, has recently unveiled an additional investment of more than US$130 million into Vietnam, raising its total investment capital there to US$730 million over the next two years as it seeks to carry out production expansion projects.
The firm will seek to invest in doubling the capacity of its instant coffee factory to boost exports, and expand the decaffeinated factory to turn it into Nestlé's largest decaf factory globally. It will also plan to increase the capacity of the production line of Dolce Gusto filter coffee capsule for export, and upgrade its Maggi liquid seasoning factory in Dong Nai to serve customers in Australia and Asia.
Nestlé places its trust in the future of Vietnam as a global and regional manufacturing hub evidenced by its decision to undertake investment projects aimed at expanding local production capacity, said Urs Kloeti, director of Nestlé - Bong Sen, the sixth of the firm’s factory chain in Vietnam.
Meanwhile, other foreign investors have also committed to increasing their investment in the Vietnamese market although the country is bearing the brunt of the prolonged COVID-19 outbreak.
Tetra Pak, a 100% foreign-owned Swedish enterprise, has unveiled their additional investment of EUR5 million in expanding its factory in the southern province of Binh Duong.
This additional investment clearly demonstrates the company’s confidence in the strong recovery of the Vietnamese economy as it moves past the pandemic, said Eliseo Barcas, managing director of Tetra Pak Vietnam.
Barcas noted the additional investment will help Tetra Pak to better serve customers, provide paper boxes of higher quality, and reduce its impact on the environment.
Moreover, this fresh investment will raise the company’s annual output from the current 11.5 billion boxes to 16.5 billion boxes, thereby meeting the increasing demand for sterilised paper boxes both in the country and the wider region.
Another foreign investor, SCG Packaging Plc (SCGP) - a member company of SCG Group from Thailand - has also unveiled a plan to funnel over US$353 million into the paper packaging business in Vietnam.
A new complex in the northern province of Vinh Phuc will be put into operation in early 2024, serving to increase the company's paper packaging production capacity by 370,000 tonnes annually.
Wichan Jitpukdee, CEO of SCG Group, said the Vietnamese market represents an important production hub in the region and an attractive destination for multinational companies.
Despite the adverse impact caused by the COVID-19 pandemic, the total export value of FDI firms over the past nine months has surged by 22.8% to US$177.8 billion, accounting for 73.9% of the country’s total export turnover, according to the General Statistics Office.
The country has attracted a total of US$22.15 billion in FDI in the reviewed period, an increase of 4.4% compared to the same period last year.
In addition, the enforcement of 14 free trade agreements, including the EU-Vietnam Free Trade Agreement - EU (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Vietnam - UK Free Trade Agreement (UKVFTA), has helped Vietnam retain investors, especially European businesses.