FDI businesses settle down

Despite two-year investment in Hai Duong, Sungold Vietnam Co., Ltd. decides to increase investment to expand production and business

Despite only five years of production and business in Hai Duong, the wholly South Korean-invested LMS VINA Co., Ltd. in the expanded Dai An industrial park has added investment three times to expand its scale.

When setting foot in Hai Duong in 2017, the enterprise was so cautious that only proposed an investment of more than 18 million USD; however, the total capital has so far exceeded 89 million USD. Along with capital increase are larger workshops and more employees.

Operating in the field of casting nonferrous metals and processing aluminum and steel, the company encountered a lot of disadvantages in the past time because of market fluctuations and the impact of Covid-19. Nonetheless, after calculation and consideration, the firm still decided to increase investment in the difficult context.

According to director-general Park Yong Chan, the increase in capital is part of the enterprise’s business strategy. The more difficult circumstances are, the more the company wants to create a solid foundation for workers to keep their mind on work.

On the other hand, after a period of investment and business in Hai Duong, the enterprise realized potential and advantages, thus wanting to build a stable “haven”.

Investing nearly 10 million USD in Hai Duong in 2020, the time of severe Covid-19 outbreaks, the wholly Chinese-invested Sungold Vietnam Co., Ltd. is now processing procedures to increase capital and expand business activities.

The company intends to hire an additional 3.5 ha of land in Cong Hoa industrial park, Chi Linh city, to double its production scale.

The enterprise is manufacturing and processing high-end plastic products with a capacity of 7,000 tons of products per year, all of which are exported to the US. After investment increase, the firm will attach special importance to developing the domestic market.

A representative of the company’s leaders said investing in Hai Duong amid the raging epidemic and high inflation was a test of the business’ bravery and all-level authorities’ responsibility and management capacity.

During the difficult period, the company was thoroughly supported by authorities at all levels, especially since it was its first project in a foreign country. Feeling secure and confident, the enterprise bravely decided to increase capital and develop production. 

Over the past two years, domestic and global economic “pictures” have been somewhat bleak. To FDI businesses, consequences were more severe due to cross-border operations and dependence of growth on export. As a result, FDI attraction to Hai Duong was idler.

Despite a slight increase in the number of new projects, capital was continuously added to old ones. According to the Department of Planning and Investment, in 2022, 31 projects in the province received a total additional capital of nearly 300 million USD, a surge of 52.4% over 2021, indicating that Hai Duong was trusted and chosen by many FDI enterprises to develop production and business.

This is the result of efforts of authorities at all levels and technical infrastructure investors in improving the business and investment environment.

To create a transparent and open investment environment attractive to FDI investors, Hai Duong authorities took a lot of drastic measures in the past time, with the reform of administrative procedures defined as the core. Most difficulties and obstacles of FDI enterprises were flexibly removed.

As a result, investors’ trust in the government was increasingly consolidated. Thanks to trust building, FDI businesses were willing to increase capital while being encircled by difficulties.

According to Director of the Department of Planning and Investment Le Hong Dien, FDI enterprises’ capital increase is a testament to the provincial authorities’ efforts in improving the business and investment environment. This is also a bright spot in investment since the economic situation in 2022 was not very satisfactory.

In the coming time, the provincial authorities will continue to take synchronous measures to promote investment attraction, not only retain but also help FDI enterprises settle down and have long-term plans.

NGUYEN MO – DO QUYET