The majority of the investments are in high-technology projects and supporting industries. However, local businesses still face challenges participating in production chains.
Hyosung Group of the Republic of Korea posted the largest investment capital with 600 million USD, producing materials for textile and car production. However, local businesses find it hard to participate in these production chains due to the closed process and high-tech requirements.
Another large investor is Mabuchi Motor Vietnam. According to the company, they have asked local businesses to provide steel, copper and rare earth for long-term plans. However, the company still has to import those materials during its 17 years of planned operations in the country.
Restrictions on technology, policy, and human resources are the main obstacles for local businesses. On the other hand, the FDI figure shows Dong Nai’s success in drawing foreign investments. The projects have increased production value, created jobs, and entailed the growth of real estate services.
