Global tech giants keep injecting investments into Vietnam

LG Display alone, a subsidiary of LG Group of the Republic of Korea (RoK), increased its investment by US$2.35 billion in 2024, with the first injection happening in November and a second one toward the end of the year. The expanded investment raised the firm’s total investment in the Vietnamese market to nearly US$6.85 billion, or 17.9% of the total FDI the country attracted last year.

Other notable investments include Amkor’s US$1.07 billion project in Bac Ninh province, Foxconn’s US$550 million expansion in Quang Ninh, and recent boosts in investment by Bosch (US$107 million) and Jabil Circuit (US$150 million).

NVIDIA's commitment to developing a research and development center for artificial intelligence in Vietnam, after acquiring VinBrain from Vingroup, marked a significant milestone. The leading chip maker’s move indicates Vietnam’s potential to become a regional hub for AI development.

In addition, Samsung Display has unveiled plans to invest billions of US dollar in 2025, including US$1.2 billion project in Bac Ninh province.

Thanks to their commitments, Vietnam attracted US$38.23 billion in FDI last year, affirming its status as a magnet for foreign investment.

Most notably, Vietnamese FDI disbursement reached an all-time high of roughly US$25.35 billion last year, up 9.4% year on year.

The figures highlight that foreign financiers continue to place their trust in the local investment climate through pumping money into new projects and expanding existing investment projects in the country. 

Minister of Planning and Investment Nguyen Chi Dung pointed out that the emergence of investors in the spheres of high-tech and semiconductor, as well as AI, will create a wealth of opportunities for the Vietnamese economy to accelerate its development in the future.

Thomas Rooney, deputy director of Industrial Real Estate Services, Savills Hanoi, said Vietnam is becoming a strategic destination for large technology corporations thanks to its favourable geographical location in the global supply chain.

The wave of investment into high-tech projects and research and development centres is expected to boost demand for infrastructure and factories, which in turn will create momentum for growth in the industrial real estate market, he added.

Furthermore, the arrival of NVIDIA, the world's leading corporation in AI and semiconductors, into the local market creates an important turning point to develop Vietnam into Asia's leading AI R&D hub, he noted.

Experts pointed out that there will be numerous semiconductor projects worth billions of US dollars in Vietnam in the coming months, largely thanks to the country’s open-door policy and transparent mechanisms.

The Vietnamese Government recently issued Decree No. 182/2024/ND-CP, which outlines the establishment, management, and use of the Investment Support Fund.

The decree is expected to elevate the country’s appeal as a destination for high-tech investment in the future.