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FDI firms eye central Vietnam province for billion-dollar projects

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The central Vietnam province of Binh Dinh is emerging as a key destination for foreign direct investment (FDI), with many companies exploring large-scale, high-tech projects that will drive sustainable economic growth in the locality.

A surge in investment interest

Binh Dinh, which aims to attract over 100 projects in 2025, has seen a surge in interest from global corporations across various sectors. One of the most significant proposals is a high-tech polyester fiber recycling plant, worth between $700 million and $1 billion, proposed by Swedish textile producer Syre.

At a meeting with the Ministry of Industry and Trade and the provincial People’s Committee on February 19, Tim King, operations director at Syre, committed to applying modern technology to the polyester recycling project to meet world-leading environmental protection standards, while also adhering to Vietnam’s environmental regulations.

The group has prepared financial plans for the project and hopes to receive support from Vietnamese authorities to finalize it, he added.

A corner of Binh Dinh province. Photo by The Investor/Nguyen Tri.

A corner of Binh Dinh province. Photo by The Investor/Nguyen Tri.

Environmental Landscape Pte Ltd (EL) from Singapore has proposed five projects in Binh Dinh, involving land reclamation and fertilizer production, solar energy combined with shrimp farming and seafood processing, wood pellet and biochar production, development of multifunctional industrial clusters, and solar energy industrial zones (including a solar-water farm).

Nguyen Tuan Thanh, standing Vice Chairman of the provincial People’s Committee, has assigned relevant departments to introduce local partners capable of producing organic fertilizers for cooperation with EL on the land reclamation and fertilizer project.

Other departments were tasked with introducing suitable industrial zones or clusters for the wood pellet and biochar project.

The departments will also assist EL in implementing the multifunctional industrial cluster project at the Cat Hanh Industrial Cluster in Cat Hanh commune, Phu Cat district, once the Saigon-Nhon Hoi Industrial Park’s infrastructure is completed.

For the solar energy-shrimp farming and seafood processing project and the solar energy industrial zone project, Thanh suggested the investor continue their surveys, prepare detailed plans, and propose suitable land areas based on current land resources of the province.

Samsung E&A Vietnam Co., Ltd. (SE&A) is seeking investment opportunities in Binh Dinh for clean water supply, wastewater treatment, and urban solid waste treatment (waste-to-energy) projects, acting as an investor and provider of technical solutions, EPC contractor, and project operator under the public-private partnership (PPP) model.

In response to SE&A’s proposal, Binh Dinh leaders introduced the Hoai Nhon Waste Incineration Plant project with a capacity of 250 tons per day, which can be raised to approximately 500 tons, for SE&A to consider investing in.

Binh Dinh has also proposed wastewater treatment projects in three localities with official development assistance (ODA) funding, including Hoai Nhon township with a capacity of 7,000 cubic meters per day, An Nhon township (10,000), and Tay Son district (5,000).

Currently, the districts and industrial zones (IZs) and industrial clusters (ICs) in Binh Dinh province need wastewater treatment infrastructure investments. If SE&A provides suitable technology and reasonable pricing, the province will allocate funds for cooperation with the company to implement these projects and introduce the company to infrastructure developers of IZ and IC projects.

Infrastructure development to support growth

At a meeting with investors from Ho Chi Minh City earlier this year, Binh Dinh Chairman Pham Anh Tuan introduced the province’s infrastructure projects inviting investments.

These include a semiconductor AI high-tech park and a 700-hectare cultural industrial park. Investors have committed to developing several industrial clusters in the locality.

Tuan emphasized the importance of connecting industrial zones with urban areas to improve living conditions for workers. The Becamex VSIP Binh Dinh service-urban-industrial complex, covering 1,000 hectares, is one such example, with four accompanying urban areas planned for development.

He also noted that the Quy Nhon-Pleiku Expressway, slated for completion in 2027, will significantly improve connectivity, while the expansion of Phu Cat Airport, starting in August, is expected to increase accessibility to the province.

Binh Dinh is also set to develop a deep-water port in Phu My, expected to be operational by 2028, which will serve as a hub for industrial activities, while Quy Nhon Port will transition to serving tourism.

Despite the positive outlook, Tuan acknowledged several challenges, particularly in terms of human resources and the region’s slower pace of attracting investment. However, he reassured potential investors that the provincial government is committed to completing critical infrastructure projects to create a conducive environment for business.

“We are committed to investing in infrastructure up to the boundary of the industrial zones. For instance, for Phu My Industrial Park, we are investing approximately VND2 trillion ($78.3 million) in connecting roads to the expressway. Once the industrial park’s infrastructure is completed, we will ensure the roads are fully integrated,” he added.

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Addressing human resource issue in industrial parks

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With the attraction of nearly 1.75 billion USD from 15 newly licensed projects and 14 projects with increased capital in 2024, Nghe An Province has maintained its position in the group of 10 leading provinces and cities in attracting foreign direct investment (FDI).

As a locality with a large population, Nghe An Province has about 50,000 people added to the workforce every year, but businesses in the province are facing difficulties in recruiting and attracting workers, especially skilled and high-quality workers.

Attracting workers is difficult, “retaining” them is even harder

The Southeast Economic Zone and industrial parks of Nghe An Province currently have 322 valid projects, with a total investment capital of over 185 trillion VND. There are 224 domestic projects and 98 FDI projects. The project focuses on producing electronic products, optics, auto parts and some green products (solar panels, high-performance batteries, etc.).

Notably, several technology corporations in the global value chain have built production facilities in the Southeast Economic Zone, with high investment value, production capacity and large market scale.

Regarding labour, more than 49,000 workers and labourers are working in the Southeast Economic Zone and industrial parks of Nghe An Province. The proportion of labourers aged 15-34 accounts for 35%, and those aged 35 and over accounts for 65%. With the rapid development of projects in industrial parks in the province, the demand for labour is increasing rapidly, especially projects in the textile and electronics sectors. The local labour shortage affects the production and business of enterprises, affecting the province’s investment attraction.

According to the Southeast Economic Zone Management Board, the labour recruitment demand of enterprises in economic zones and industrial parks, especially FDI enterprises, will continue to increase by more than 40,000 workers in 2025.

In VSIP Nghe An Industrial Park, there are currently seven investment projects in the ecosystem of Luxshare – ICT Group. Do Nhat Hoang Tat, Human Resources Director of Luxshare – ICT Nghe An Company, said: In June 2020, Luxshare – ICT Group decided to invest in VSIP Nghe An Industrial Park.

After four years, the Company has developed seven factories and more than 14,000 workers. In August 2022, the Group’s leaders came to survey and decided to invest in Luxshare – ICT Nghe An 2 Project. Initially only processing, the enterprise has gradually produced electronic, optical, acoustical and other products.

It is expected that by 2028, the enterprise will need up to 28,000 workers. “This is a big challenge that we are facing, and we need great attention and support from local authorities at all levels and vocational schools,” a Luxshare – ICT Nghe An Company representative emphasised.

According to Teng Wei Hong, General Director of VSIP Nghe An Company Limited: In Nghe An, VSIP is developing two major projects. From the first VSIP Nghe An project implemented in 2015 in Hung Nguyen District, in 2023, VSIP will continue to implement the VSIP Nghe An 2 project in Dien Chau District.

To date, the total FDI capital of VSIP Nghe An and secondary investors in the industrial park has reached 3.1 billion USD. The occupancy rate at VSIP Nghe An Industrial Park in Hung Nguyen is over 90%. “Thanks to the support of the local authorities and the Southeast Economic Zone Management Board, we have attracted more than ten leading manufacturers in electronics, precision mechanics and smart equipment. The number of workers in the Industrial Park has increased more than ten times.

Before the COVID-19 pandemic, there were only 2,000 people, now it has increased to 23,000 people. In the next two years, the above industrial park is expected to create jobs for about 35,000 workers. This is a joy, but also a great pressure on attracting and recruiting workers,” Teng Wei Hong shared.

Statistics from the Nghe An Provincial Employment Service Centre show that in recent times, many FDI enterprises have recruited a large number of workers, but have been unable to retain them. Many enterprises have had more than 50% of their employees quit.

A typical example is Luxshare – ICT Nghe An Company, the leading enterprise in Nghe An Province in arranging accommodation for workers (with a dormitory area of more than 2,000 rooms). Specifically, in 2023, this company recruited 7,126 workers, but there were up to 3,793 cases of resignation.

In 2024, the number of workers applying for resignation and job transfer is also very large. It is forecasted that from 2025-2029, FDI projects in Nghe An alone will need to register to employ about 98,700 workers.

Many solutions to “pull” workers back to the locality

The reasons leading to the difficulty in recruiting workers for industrial parks in the area have been identified by the departments and branches of Nghe An Province. First of all, it is due to the rapid increase in labour demand for enterprises, especially FDI enterprises operating in electricity, electronics, footwear, semiconductors, garments, etc.

Secondly, Nghe An is one of the leading provinces nationwide in the number of people going abroad to work. In 2024, Nghe An Province had more than 21,000 workers working abroad under contracts, with incomes many times higher than those working in enterprises in the province and the country.

Thirdly, not only Nghe An but also many other provinces and cities need to recruit a large number of workers.

The income and benefits of enterprises in the northern and southern regions are higher. On average, enterprises in Nghe An Province pay salaries and monthly income to workers at 6.63 million VND, while the national average is 8.49 million VND.

For example, Hai Phong is more than 8.8 million VND/person/month and Ho Chi Minh City is 11.4 million VND/person/month. Right next to Nghe An Province are Thanh Hoa and Ha Tinh provinces, the monthly income of workers is also higher, Thanh Hoa is nearly 7.9 million VND, and Ha Tinh is about 7.7 million VND.

Meeting the demand for labour is one of the “five readiness” that Nghe An Province has identified that must be well prepared to attract investment, including planning, investment premises, essential infrastructure, human resources, reform, promotion and active support.

To overcome the situation where the province’s labour force does not meet the demand for quantity and skilled labour, on January 2, Nghe An Provincial Party Committee issued a Project on strengthening the Party’s leadership in connecting labour supply and demand, solving employment, and attracting labour for domestic enterprises and FDI enterprises in the province in the 2025-2030 period.

Immediately after the Project was issued, the Standing Committee of Nghe An Provincial Party Committee also issued a Directive requesting Party committees, Party organisations, authorities and socio-political organisations to thoroughly grasp and promote the implementation of key tasks in this work.

At the Job Fair organised by the Management Board of the Southeast Nghe An Economic Zone and the Department of Labour, War Invalids and Social Affairs of Nghe An Province right after the Lunar New Year 2025 at VSIP Industrial Park (Hung Nguyen District), sharing with reporters, most of the workers participating in the event wanted to find suitable jobs right in their hometown.

Traveling nearly 100 km in cold and rainy weather to the location of the job fair, Nguyen Thi Hang (born in 2001, residing in Do Luong District, Nghe An Province) said that she had worked in an industrial park in the north with a good income.

With her experience, she hopes to find an office administrative job, such as quality inspection or personnel recruitment. Hoang Thi Ha (born in 1986) and Le Thi Thao (born in 1983), both residing in Hung Nguyen District, used to work as garment workers in Binh Thanh District, Ho Chi Minh City, and now also want to find work in their home district.

Or the case of Vo Thi Hien (born in 1989, residing in Hung Nguyen District), who worked as a worker at an electronics company in Taiwan (China) and has just returned, now also wants to find work in her hometown.

Attending the above event, hundreds of parents came to learn about recruitment information to send to their children working in other localities. Many workers said that working close to home is very enjoyable, however, it is also necessary to put on the “scale” the monthly income and expenses to consider.

According to the Management Board of the Southeast Economic Zone of Nghe An Province, 24 enterprises are consulting at this Job Fair, recruiting labour with more than 42,000 job positions. There are 36,000 unskilled workers and more than 4,000 trained workers.

Specifically, An Nam Matsuoka Garment Company Limited, operating in the garment industry, needs to recruit 2,000 workers. Luxshare – ICT Nghe An Company needs to recruit 33,000 more workers, administrative staff, accountants, and engineers.

Le Tien Tri, Head of the Management Board of the Southeast Economic Zone of Nghe An Province, said: The Job Fair is the first event in a series of tasks and solutions to implement Directive No. 33-CT/TU and Project No. 40-DA/TU of the Provincial Party Committee Standing Committee on strengthening the Party’s leadership in connecting labour supply and demand, solving employment, attracting labour for domestic enterprises and FDI enterprises in the province in the period of 2025-2030.

This is also an opportunity for workers who work far away to return home to celebrate the Lunar New Year of At Ty, and to grasp and learn directly about the working environment in their hometown, thereby having more options for suitable positions and jobs, helping workers stabilise their lives right in their hometown.

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Vietnam must develop nuclear energy as baseload to double power capacity by 2030: Deputy PM

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As Vietnam has to increase its power capacity by 70,000 MW before 2030 with renewable energy playing a major role, developing nuclear energy as baseload for the system is inevitable, said Deputy Prime Minister Nguyen Hoa Binh.

Binh made the statement at a Sunday working session with the Dalat Nuclear Research Institute in the Central Highlands province of Lam Dong.

Doubling the energy capacity to ensure sufficient energy supply is crucial to Vietnam’s target of economic growth over 10% annually in the next era, Binh emphasized.

Deputy Prime Minister Nguyen Hoa Binh (right) works with the Dalat Nuclear Research Institute in Lam Dong province, Vietnam's Central Highlands, March 2, 2025. Photo courtesy of the government's news portal.

Deputy Prime Minister Nguyen Hoa Binh (right) works with the Dalat Nuclear Research Institute in Lam Dong province, Vietnam’s Central Highlands, March 2, 2025. Photo courtesy of the government’s news portal.

Therefore, Binh called on the institute to research and develop nuclear technology, approaching global standards to help the country’s growth.

Vietnam is now capable of developing and will prioritize nuclear science, he added.

The country had increased its power sources by 1,500 MW to 82,400 MW as of end-2024, Vietnam Electricity (EVN) said at its 2024 performance review. The figure was the highest in Southeast Asia, the state utility added.

In 2005, Vietnam’s Party Central Committee greenlighted a plan to build two nuclear power plants in the south-central province of Ninh Thuan. Four years later, the National Assembly okayed the plan with an initial investment of VND200 trillion ($7.9 billion at the current forex rate).

In November 2016, the parliament decided to halt the 4,000 MW project, citing safety, funding and technology reasons. In November 2024, it agreed to resume the nuclear power project in Ninh Thuan after an eight-year suspension.

Many countries have expressed their willingness to coooperate with Vietnam in nuclear power, such as South Korea, Russia, Japan, and France.

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Industrial production on the mend: Deputy Minister

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Vietnam’s industrial production has continued its rosy signs since late 2023, promising a bright prospect for the country in the time ahead, Deputy Minister of Industry and Trade Phan Thi Thang said at the Government’s regular press conference in Hanoi on August 5.

According to the official, Vietnam’s Purchasing Managers’ Index (PMI) in July 2024 reached 54.7 points, the highest since November 2018, with output increasing sharply thanks to increasing new orders for four consecutive months.

The index industrial production (IIP) in July grew by 0.7% over the previous month and 11.2% year-on-year, Thang said, noting the index saw increases in 60 provinces and centrally-run cities in the first seven months of this year.

She attributed the result to improvements in the production capacity of domestic businesses that have also shown their readiness to optimise opportunities to access new markets in the time to come.

Additionally, the deputy minister said, support policies and the drastic instructions of the Government and the Prime Minister in public investment disbursement and the implementation of key industrial projects have helped consolidate the confidence of both domestic and foreign firms.

The official also pointed to a range of challenges such as intrinsic weaknesses, regional and global volatilities, the risk of global supply chain disruptions, and the reliance on some export-import markets, along with the pressure of trade remedy investigations.

Given this, the Ministry of Industry and Trade will speed up public investment disbursement, review obstacles to key projects in electricity, oil and gas, processing and manufacturing, and minerals in order to soon put them into operation, and continue its cooperation with FDI firms and big enterprises at home and abroad as well as international organisations to step up connectivity and improve capacity for domestic suppliers.

The ministry will also encourage the purchase of home-made goods, and seek new markets for key exports, Thang added.

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