Vietnam Misses Investments Due to Insufficient Incentives, Intel, LG Chem etc. Withdraw

TapTechNews July 8th news, Reuters recently said that according to the report file of the Ministry of Planning and Investment of Vietnam obtained by it, due to insufficient incentive measures, the country has missed the investment of many overseas enterprises including Intel and LG Chem.

Vietnam's economic growth relies heavily on foreign investment, and about 70% of its total exports are contributed by foreign-invested enterprises.

It is reported that Intel once proposed to invest 3.3 billion US dollars (TapTechNews note: currently about 24.071 billion yuan) in Vietnam to build packaging and testing facilities, and requested Vietnam to provide 15% cash support.

But later Intel transferred this project to Poland due to reasons such as 'unstable power supply' and 'excessive bureaucracy' in Vietnam, and the project investment amount also increased to 4.6 billion US dollars (currently about 33.554 billion yuan).

Previously, South Korean LG Chem intended to build a chemical battery production base in Vietnam and required the Vietnamese government to bear 30% of the investment cost. Eventually, LG Chem chose to build a factory in Indonesia.

In addition, the Austrian PCB and substrate enterprise AT&S AT&S also abandoned its investment plan in Vietnam after its subsidy request was rejected and chose to invest in Malaysia instead.

Even Samsung Electronics, the largest overseas investor in Vietnam, is also considering transferring some of its production capacity from Vietnam to India.

It is reported that the Ministry of Planning and Investment of Vietnam submitted an investment incentive fund plan to the central government of Vietnam last Friday to avoid the recurrence of similar situations.

Related reading:

'It is said that Intel has shelved the investment plan in Vietnam and the expansion of the chip business has been postponed'