According to economists, this is the third biggest wave of FDI for Vietnam since 1991, and the country is expected to utilise this capital effectively.
Many LG Electronics products, such as the OLED 4K TV, have been newly selected to be produced in Vietnam this year. At the Innofest 2016 held in Seoul, LG also introduced their business strategy in Asia, which focuses on promoting investment in Vietnam and aims to build a global-scale production plant in the country. A manufacturing complex of LG Electronics in Hải Phòng, with up to 1.5 billion USD worth of investment, kicked off at the end of 2015. With this complex, LG has committed to bringing high technology to Vietnam, in order to reach the local content rate of 50% in the next 2 years.
Recently, big investment projects like LG’s have helped boost FDI inflows to Vietnam. In January, Vietnam received 1.3 billion USD in FDI, two times higher than the same period last year. Vietnam’s active integration and low labour costs are key factors that attract multinational corporations.
"The World Bank considers Vietnam one of the most ideal countries for investment, after India and Singapore. According to a survey of UNCTAD, Vietnam is one of the top ASEAN countries in FDI attraction. In 2015, global FDI was 14.5 trillion USD, while Vietnam’s FDI accounts for only 1% of this amount. Thus, Vietnam can accelerate FDI attraction with proper investment policies and make use of this capital effectively in accordance with international trade agreements", Victoria Kwakwa, Country Director of World Bank in Vietnam, said.
