Attracting FDI in Nghe An province: The numbers “talking”

Ready to Embrace new investment waves

To enhance foreign investor attraction, Nghe An has recently intensified infrastructure investment efforts to “build a nest for eagles.” Various directives have been issued to relevant units to continue enhancing policy improvements and timely resolving obstacles for businesses.

As per the plan for 2021-2025, Nghe An will adjust the boundaries of the Southeast Economic Zone (SEZ) to 80,000 hectares (including 70,000 hectares of land and 10,000 hectares of sea), with around 15,000 hectares dedicated to industrial zones, renamed as Nghe An SEZ.

With existing infrastructure, Nghe An will focus on attracting investment to develop the infrastructure of the North Cua Lo area (especially the deep-water port of Cua Lo with three berths of 100,000 DWT each, transforming it into an international port).

According to the implementation plan of Resolution No. 12-NQ/TU dated April 20, 2023, of the Provincial Party Committee’s Standing Committee on enhancing the Party’s leadership effectiveness in implementing the Sustainable Development Strategy for the Coastal Economy by 2030, vision to 2045, Nghe An will focus on developing the coastal infrastructure.

Expanding the Southeast Economic Zone and making it a center to concentrate investment resources in synchronizing industrial zone infrastructure throughout the province. The emphasis is on investing in infrastructure, constructing industrial clusters to limit environmental pollution and ensure sustainable development.

Additionally, there is a push to restructure the industrial sector, innovating the growth model from breadth to a balanced development between breadth and depth. A breakthrough is sought in attracting investment, especially FDI, to rapidly develop competitive advantage industries and high-tech industrial sectors such as electronics, information technology, assembly mechanics, and supporting industries.

Leveraging the crucial role of maritime transport in connecting Nghe An to the international market, creating attraction for FDI in the period 2021-2030. Establishing a logistics center II within the Southeast Economic Zone.

During the conference “Prime Minister with Foreign Direct Investment Enterprises,” Chairman of the Nghe An Provincial People’s Committee, Nguyen Duc Trung, stated that Nghe An has identified, analyzed, and evaluated its advantages, difficulties, and prepared conditions to continue receiving new investment waves.

Nghe An is ready to innovate, reform, and substantially improve the investment and business environment, simplifying administrative procedures with a focus on “One-stop at the location,” “One gateway,” especially in investment procedures in the Southeast Economic Zone and industrial zones, which will be resolved quickly and conveniently.

FDI Technology takes the lead

Looking at the statistical figures, the FDI investment numbers for Nghe An province validate the arrival of a “new wind” with major players in the technology sector flocking to the region.

Since 2019, Nghe An has attracted over USD 2 billion in FDI, including several significant projects in the electronic equipment and technology sector. For instance, on June 22, Nghe An approved the investment proposal for the production project of single crystal silicon rods and semiconductor discs at the Hoang Mai I Industrial Park. The project, led by Runergy PV Technology Company Limited (Thailand), initially had an investment of over USD 293 million, but Runergy PV Technology has adjusted and increased the total investment to USD 440 million. This marks the starting point in the company’s investment plan in Vietnam, with subsequent projects potentially raising the total investment in Vietnam to USD 1.2 - 1.4 billion.

During the press conference on the economic and social situation in the first 9 months of 2023, Vice Chairman of the Nghe An Provincial People’s Committee, Bui Dinh Long, stated that alongside the impressive FDI attraction, the investment attraction indicators of the locality continue to demonstrate strong upward momentum. Nghe An has risen by 2 positions, ranking 6th out of 63 provinces and cities attracting the most FDI in the first 9 months of 2023, with a total newly registered and adjusted capital of over USD 1.27 billion.

Earlier, in May 2023, Nghe An issued a Investment Registration Certificate for the Electronic Component Manufacturing Plant project (USD 100 million) to the Foxconn Group. In January 2022, Nghe An granted an Investment Registration Certificate (adjusted) for the project of manufacturing electronic products, network equipment, and multimedia audio products at the WHA Industrial Zone for the Goertek Group. After over a year of implementing Phase 1 of the project (with an investment of USD 100 million), the group decided to increase the project’s investment to USD 500 million, making it the largest FDI project in Nghe An to date.

Additionally, Nghe An has issued investment registration certificates for the project of manufacturing electronic product components and automobile parts at the Hoang Mai I Industrial Park by Ju Teng (USD 200 million); the Electronic Component project at the VSIP Industrial Park by Everwin Precision Vietnam Technology Company Limited (USD 200 million)...

Once the investment proposals are approved, almost all FDI investors have promptly completed the necessary documents and procedures to commence construction, implement the project, and put it into operation in Nghe An.

With the influx of many technology giants both domestically and internationally, industrial parks in Nghe An are gradually filling up. Currently, the VSIP Nghe An I Industrial Park in Hung Nguyen district has reached nearly full occupancy (96%). To prepare for new investment waves post-pandemic, VSIP has initiated the investment project VSIP Nghe An II with an area of 500 hectares in the communes of Dien Tho, Dien Phu, Dien Loc (Dien Chau).