Vietnam's Ministry of Investment said Vietnam was missing out on billions of dollars in investment from multinational companies such as Intel and LG Chem due to a lack of adequate investment incentives, according to Singapore's Lianhe Zaobao.com.
Reuters reported that according to a document they reviewed, the Ministry of Investment said in a June 29 filing that American chipmaker Intel had proposed to invest $3.3 billion in a project in Vietnam and asked Vietnam for 15% "cash support", but later decided to move the project to Poland.
South Korea's LG Chem Co. Ltd. also skipped Vietnam and invested in a battery project in Indonesia after asking Vietnam to bear 30 percent of the investment costs, the document said.
During this period, it should be said that many of the companies that have invested in Vietnam have withdrawn, and some have changed their minds.
Vietnam is an important manufacturing base for companies such as Samsung Electronics, Foxconn, and Intel, and its economic growth is heavily dependent on foreign investment.
Close to our China, and China's industrial transformation in recent years, some enterprises have invested in Vietnam to set up factories, but Vietnamese investment is also facing a lot of risks.
For foreign capital, if there is no sufficient investment incentive, it will not attract people to set up factories. There are no tax exemptions, rent exemptions, etc., who will come here to invest.
In addition, Vietnam's infrastructure is seriously backward, the most direct is two points, the first is electricity, and the second is roads. These are the most realistic, so that major multinational companies feel that they are not attractive enough and choose to invest in other countries.
Vietnam is aware of its own problems and is trying to improve it, but it is difficult to get rid of it easily.
Zhang Meilan cried that the Vietnamese government has already caused the country to lose tens of billions
Some time ago, Putin came to Vietnam for a visit, and he and Vietnam carried out economic cooperation, and several of them can be said to make Vietnam very excited.
They offered to help Vietnam use nuclear energy to generate electricity, that is, to exchange their own currency for trade transactions with Vietnam, and they were not prepared to use US dollar foreign exchange reserves.
The Associated Press reported on April 11 this year that Zhang Meilan, a Vietnamese real estate developer and the richest woman, was sentenced to death by a court. Ms. Zhang, 67, has been charged with $12.5 billion fraud, the country's largest ever financial fraud
Last year's and this year's real estate crashes in Vietnam were related to this woman, causing Saigon Commercial Bank to almost go bankrupt. To save the bank, the Vietnamese government threw $24.5 billion, or 6 percent of Vietnam's GDP, into it.
Although Vietnam's economic development as a whole is still okay, the use of so many foreign exchange reserves is also very stressful for the Vietnamese government!!
The point is that the consequences are serious, because the collapse of the Vietnamese banking system and the frenzied flight of capital have led to the decline of the Vietnamese exchange rate and the crazy depreciation of the Vietnamese dong. At the same time, foreign exchange is used to save banks, coupled with inflation, the Vietnamese people are full of complaints and miserable, frantically grabbing gold to avoid further depreciation of assets.
For Vietnam, this "hole" is not so easy to fill, and foreign capital is also very worried.
The amount of foreign exchange reserves in the US dollar has plummeted, and Russia's offer to use its own currency is certainly very attractive to Vietnam, not forgetting that they have strong trade relations with each other, which will also save foreign exchange reserves!!
For Vietnam, the reduction of foreign exchange reserves means that the state does not support other companies to invest here, and it may be too strong to rush to recover funds, which is what they need to do now
And many companies are also nervous and worried, some time ago the Vietnamese political scene has changed a lot, so that enterprises have fear.
For companies, the political environment is much higher than the profits they can make. If the political environment is not good, then it means that you can't make money, and you may lose money.
This kind of investment in enterprises will also have strong side effects, and many companies dare not invest.
Vietnam is discussing the construction of a high-speed railway, hoping that China will help
Vietnam's infrastructure is backward and notoriously in Asia. In the eyes of the outside world, Vietnam has a strong development vitality, but it is really easy to lag behind.
Not long ago, the Vietnamese Prime Minister visited China to ask for something, and to put it bluntly, it was for high-speed rail.
Vietnamese Prime Minister Pham Minh Chinh told Lou Qi Luong, chairman of China Railway Communication and Signal Group, on the sidelines of the World Economic Forum in Dalian, that Vietnam needs China's assistance in railway design, construction and technology transfer, Bloomberg reported, citing a statement posted on the Vietnamese government's website.
Their family wants to build a high-speed railway, which was more than ten years ago, and they still want to play two peaches to kill three soldiers.
In fact, the biggest purpose of cooperating with Japan, South Korea and Germany, and also frequently looking for China, is to obtain relevant technology, and also hope that foreign companies will lend money to Vietnam.
It's just that to put it bluntly, for other countries, the attraction is not great, and the relevant technology cannot be transferred.
This time, he came to China for another reason, which is to hope that China can come forward to build a high-speed railway in Vietnam and connect it with China's high-speed rail network.
Vietnam plans to build a cross-border railway to connect China's Yunnan province with Vietnam's northern port city of Haiphong, as well as connect China's Dongxing city to Haiphong, as well as China's Dongxing city, Haiphong, according to a report by news website VnExpress on Tuesday (June 25). Plans also include the construction of a railway between Lang Son province on the Vietnamese border and Hanoi, the report said.
The idea is very good, but we also have to consider whether other countries are happy or not, after all, the construction of high-speed rail is not a small project, it requires large-scale investment, and whether it can return to its original cost is also a problem that others must consider.
Electricity is also a real problem that is stuck in the investment of other enterprises
Every summer, it is also the most difficult time for Vietnam, which means that there will be a significant increase in electricity, not only for residents, but also for businesses.
Their power generation technology is not too high, and if they use the most traditional way, that is, to use coal to generate electricity, they will be criticized by the West.
For enterprises, if you can't guarantee that people have enough electricity, then people may not dare to invest in you, which is the most realistic problem.
Some manufacturing industries need a lot of electricity to produce electricians, and if there is a power outage for one day, the loss caused to the enterprise is quite large.
It should be said that there is indeed a big gap between Vietnam and China in terms of infrastructure and investment regulations. We in China did not achieve this overnight.
We have also been reforming and opening up for so many years, and we have gradually improved it little by little. Later, with the development of China's economy and the increase in labor costs, some enterprises have moved to Vietnam, and Vietnam has also entered the economic take-off.
But if these practical problems are not solved, for Vietnam, development is easily limited!
brief summary
Vietnam has always wanted to replace China as the center of manufacturing in Asia, and many media have attached great importance to Vietnam before, but these realities do limit Vietnam's economic development.
These problems seem to be easy to solve, but in reality, the operation is also very difficult, and it is really difficult to fix!!
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