VNExpress-Apr 11
Many European and Asian headquartered multinational giants are rushing to invest in Vietnam’s industrial parks to start new production or expand operations, showcasing confidence in the country’s growth potential. At the end of the first quarter, German lubrication giant Fuchs Petrolub announced the expansion of its Vietnam operations, renting a 20,000 sq.m area at the Phu My 3 Specialized Industrial Park (PM3 SIP) in Ba Ria – Vung Tau Province to build a new factory. In February, Framas and KTG Industrial struck a factory lease deal. This German leading plastic tech manufacturer has leased a 20,000 sq.m facility at KTG Industrial Nhon Trach 2 in Dong Nai Province for 10 years. On February 17, LOGOS and Manulife Investment Management established a joint venture to acquire a modern, custom-built $80 million logistics factory with a total area of 116,000 sq.m. Meanwhile, Singapore real estate company CapitaLand Development (CLD) has signed a memorandum of understanding to invest $1 billion in the northern Bac Giang Province to develop its first industrial park, logistics and urban area in Vietnam. In the first two months of the year, the northern Thai Nguyen Province attracted $924 million in foreign direct investment (FDI), accounting for nearly 18.5 percent of the country’s total FDI in the period. Prominent among them is the $920 million investment by Samsung Electro-Mechanics Vietnam Co. Ltd. One major factor in Vietnam attracting large FDI flows is its low labor cost at just 60 percent of Thailand, 31 percent of Malaysia and 25 percent of China. Corporate tax in Vietnam is also the lowest in the region at 20 percent, and there are many tax incentives being offered. In terms of industrial land rentals, too, Vietnam is very low compared to other ASEAN countries. Read more at: https://e.vnexpress.net/news/business/foreign-companies-make-a-beeline-to-vietnam-industrial-zones-4450083.html
