(VOVworld) – In 2014, Vietnam’s FDI attraction has seen improvement in both quality and quantity with much investment in high-tech, processing technology, manufacturing, and infrastructure development. Vietnam has been praised for creating a more favorable business environment for foreign investors.

So far this year, Vietnam has licensed 1,427 projects, including new and existing projects with a total registered capital of 17.33 billion USD. With investment of more than 3 billion USD in Thai Nguyen, the Republic of Korea has surpassed Japan to become Vietnam’s biggest investor.

The Korea Electric Power Corporation (KEPCO) has shown interest in investing in the Song Hau 3 thermal power plant, a major project in the Mekong Delta province of Hau Giang. (Photo: nganhangonline)

Thai Nguyen topped 50 provinces and cities nationwide in drawing FDI capital over the past eleven months. Following Thai Nguyen were Ho Chi Minh City, Binh Duong, Dong Nai, and Hai Phong.

The processing and manufacturing industry continued to attract the most attention from foreign investors with the highlight being three major projects by RoK in mobile phones and electronic components. They are the second phase of the 3 billion-USD Samsung Thai Nguyen High Technology Complex, the 1.4-billion- USD Samsung CE Complex, and the 1-billion-USD Samsung Display in Bac Ninh. The two companies in Bac Ninh and Thai Nguyen alone have generated 60,000 jobs for Vietnamese workers.

About 35% of all mobile phones sold by Samsung around the world will be assembled and produced in Vietnam, and the figure is expected to increase to 50% in the near future.

Nguyen Van Trung, Deputy Minister of Planning and Investment, said: “Vietnam plans not to attract investment at any cost but will focus on high-tech projects like oil refining and petro-chemical. To serve that industry, projects and services will be developed leading to the establishment of satellite businesses to what we are working on with the Republic of Korea and Japan. So we should boost studies to develop an auxiliary industry toward establishing a number of support industry zones.”

In 2014, Japanese investors have also invested in auxiliary industries and promoted the transfer of technology to Vietnamese businesses. Phan Huu Thang, a former Director of the Foreign Investment Department of the Ministry of Planning and Investment, said: “Japan’s investment accounts for 86% of the total investment in processing and manufacturing. Vietnam set as a goal at the beginning to improve the quality of FDI investment in Vietnam.”

2014 marked an important change in Vietnam’s FDI attraction structure. Major corporations from RoK, Japan, and Singapore have looked for investment opportunities in infrastructure, energy, transportation, seaports, and airports. Korea’s Samsung group is speeding up investment in a fuel depot in Dung Quat and the construction of Nghi Son Thermo-Power Plant No2 in Thanh Hoa. Meanwhile, Japan’s Marubeni, Mitsubishi, and Sumitomo groups are paying attention to Vung Ang 2 thermo-power plant and Van Phong 1 and want to speed up work the projects.