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Processing and manufacturing industry in Vietnam attracts British investors

Processing and manufacturing industry in Vietnam attracts British investors
Processing and manufacturing industry in Vietnam attracts British investors. (Source: Cong Luan Newspaper)

Nearly 50 project New level

Deputy Minister of Industry and Trade Tran Quoc Khanh said that besides two-way trade growing by 17% in the first year of implementation of the Vietnam-UK bilateral FTA, foreign direct investment (FDI) flows from the UK into Vietnam have increased. significantly increased.

Specifically, in 2021, there are 48 newly granted British investment projects in Vietnam, with a total registered capital of more than 53 million USD, an increase of 157% compared to the previous year.

The total registered capital of British enterprises in Vietnam is currently about 4 billion USD, accounting for nearly 1% of the total registered FDI in our country. The UK ranks 15th out of 141 countries and territories having investment projects in Vietnam.

Among the major British investment projects in Vietnam is the Aqua City Joint Stock Company Project, granted investment registration certificates in April 2008, with total registered investment capital of 518.7 million USD. real estate business in Dong Nai province; Joint venture project Oil and gas contract Lot 06-2, granted investment registration certificate in December 2000, total registered investment capital of 507 million USD; Hanoi Green Technology City Co., Ltd. project, granted investment registration certificate in December 2014, is a 100% foreign-invested project, operating in the field of real estate business, with total investment capital. register 302 million USD…

British investment projects in Vietnam focus on processing and manufacturing industries (accounting for 38.7% of total registered investment capital), real estate business (26.2%), and mining (17.6%).

According to the Foreign Investment Agency (Ministry of Planning and Investment), British investment in Vietnam has tended to increase since the country left the EU and UKVFTA took effect. However, the average scale is 9.2 million USD/project, lower than the average size of 11.8 million USD/project.

MP Graham Stuart, trade envoy of the British Prime Minister in charge of Vietnam, Laos and Cambodia, commented that the UKVFTA, which will come into force in early 2021, is an important pillar to implement commitments to promote trade. , bilateral investment. If trade in goods in 2021 is a great achievement that UKVFTA has opened for the two countries right after the first year of implementation, investment activities here will be more exciting.

The foundation of investment activities that will be more exciting, mentioned by Mr. Graham Stuart, is the 26 investment cooperation agreements between businesses of the two countries on the occasion of Prime Minister Pham Minh Chinh’s visit to the UK and attending the Conference. 26th Parties to the United Nations Framework Convention on Climate Change (COP26) late last year.

In which, Vietjet Air and Rolls-Royce Group signed an agreement to provide engines and engine services for the wide-body fleet with a total value of 400 million USD; Affinity Investment Fund and HDBank signed a sponsorship agreement of 300 million USD for the program of sustainable development and combating climate change; Vingroup and a representative of Raphael Labs Company (UK) signed an Agreement on cooperation, development, investment, testing and technology transfer for the production of drugs to prevent Covid-19 and other respiratory diseases…

Clean energy, promising high technology

MP Graham Stuart emphasized that Vietnam’s commitment to net zero emissions at COP26 at COP26 is very important, which will attract British businesses to Vietnam to invest more in the field of renewable energy. generation, typically offshore wind power. The UK is currently a leader in offshore wind power.

Kenneth Atkinson, Chairman of the British Chambers of Commerce in Vietnam (BritCham) said: “We are listening to opinions and understanding the interest of British investors in their investment plans in Vietnam to have a specific advice”.

Although the pandemic is still complicated, the flight route between the two countries has been opened, and investment cooperation programs between businesses of the two sides have continued. Standard Chartered Bank has committed to invest a large amount of capital for sustainable development in Vietnam in the near future, providing technology support with Vietnamese partners… This is the basis that investment activities will increase increased and more substantial.

According to Mr. Kenneth Atkinson, the areas that British businesses are interested in investing in will be education, clean energy, high technology, healthcare, fintech… The UK wants to cooperate with Vietnam along with partners. international cooperation to support Vietnam to fulfill its climate and development commitments and attract private financing.

Foreign financial institutions have made quite optimistic forecasts about Vietnam’s economic prospects in 2022. Vietnam’s GDP growth rate this year is forecast at 6.5-6.7% , thanks to the wide coverage of Covid-19 vaccines and economic recovery policies.

Leaving the European Union from January 2020 brings the UK into a new phase. Investment inflows from the UK into Vietnam are forecast to continue to increase, as UKVFTA commitments effectively support this investment process.

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