Processing and manufacturing continues to lead the way in foreign investment mobilisation - however, moving towards a high-tech industry is essential for long-term and sustainable development.The Ministry of Planning and Investment’s Foreign Investment Agency has revealed that processing and manufacturing led among 16 sectors in the first two months of the year, with a total investment of $2.54 billion, capturing 59.1 per cent of all foreign direct investment (FDI) in the country, 16.8 per cent higher than the same period last year.In January, FDI disbursement was $1.48 billion, up 9.6 per cent on year. Of this, disbursement of processing and manufacturing was $1.15 billion, making up 77.7 per cent, which is a positive movement reflecting investor confidence in the future, and their desire to do long-term business in the country.Specifically, a series of foreign-invested projects were licensed in the first two months of the year in the southern provinces. They are not large in scale, but use new, environmentally friendly technologies, and less labour-intensive processing and manufacturing.The largest projects are a $278 million venture from BOE Audio-Visual Electronic Technology from China in the southern province of Ba Ria-Vung Tau; and SLP Park Loc An Binh Son in Long Thanh district by Sea Fund I Investment 14 from Singapore, with registered capital of $121.4 million.completed preparations to put chip packaging machinery into operation in the same high-tech park.In northern provinces, numerous high-quality industrial projects in key fields have been registered and set up, such as the $45-million Goodway Vietnam factory construction project from a Taiwanese investor in Lien Ha Thai IP in the northern province of Thai Binh, producing connection devices and computer peripherals.At the end of February, the Quang Ninh Economic Zone Management Board delivered investment certificates to two foreign-led projects worth over $330 million. They are the $275-million Gokin Solar Hai Ha Vietnam initiative involving photovoltaic monocrystalline silicon panels and more at Texhong Hai Ha IP; and the $57-million bearings and equipment manufacturing scheme at Song Khoai IP in Quang Yen town, funded by IKO Thompson Vietnam.Gabor Fluit, chairman of the European Chamber of Commerce in Vietnam, said at last week’s Binh Phuoc investment promotion forum that businesses in high-tech agriculture, construction, tourism, banking and finance, and renewable energy were truly interested in investing in Vietnam.Last year, the processing and manufacturing industry lured over $23.5 billion of FDI, accounting for 64.2 per cent of total registered FDI in Vietnam and an increase of 39.3 per cent compared to 2022. This raised processing and manufacturing to become the largest foreign-invested industry out of 18 economic sectors.As of the end of February, there are more than 17,000 foreign-invested projects in this industry, with a total investment of about $285.4 billion, many-fold higher than other industries.The Ministry of Industry and Trade recognises that the processing and manufacturing industry is the foundation and driving force for the growth of the entire industry and the economy, and the top industry in attracting FDI because Vietnam has the advantage of large and quality labour, a stable macroeconomic policy, and an open and safe market.“The processing and manufacturing industry is the spotlight of industrial production, the main determinant of the growth rate of the entire industry, creating the greatest added value for the industrial sector and the main driving force in the country’s economic growth over the past years, contributing to successfully implementing socioeconomic development,” said Minister of Industry and Trade Nguyen Hong Dien. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam Investment Review