Mekong Memo Vietnam 20230928
Mekong Memo Vietnam Weekly, September 28, 2023: Business, politics, finance, trade & legal news.
We monitor and filter the very best and most insightful business stories from Southeast Asia directly to your inbox every week.
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With that said, here is your Mekong Memo Vietnam for the week of September 28, 2023:
A Rising FDI Titan of Southeast Asia
Vietnam is rapidly ascending as a prime destination for foreign direct investment (FDI) in Southeast Asia, driven by its young demographic, with 40% of its 100 million population under 25, and tariff-free access to the ASEAN's 800 million people. In Q1 2023, FDI capital touched $10 billion, marking a 0.5% increase year-on-year. The nation has attracted investments from 90 countries, with South Korea, Singapore, and Japan leading. There were nearly 40,000 valid foreign-invested projects with a total registered capital of 455 billion USD as of September 20, according to the Foreign Investment Agency.
Vietnam Grabs Apple's Attention as Prime Hub
Apple has identified Vietnam as a pivotal market and production region, with significant growth in the production scale and export value of its products in the country. During a meeting with Vietnamese Prime Minister Pham Minh Chinh, Apple's vice president, Nick Ammann, expressed the company's interest in Vietnam's clean energy strategy and its intention to further invest in human resource development. Apple's suppliers, including Lux Share and Foxconn, run 32 factories in Vietnam, employing 160,000 workers. JPMorgan predicts a substantial shift of Apple's production to Vietnam by 2025.
Read more: VietnamNet
Hanoi Welcomes Lotte's Mega Mall in Strategic Shift
South Korea's Lotte Group has inaugurated a vast retail complex in Hanoi, representing a $643 million investment, marking its intensified focus on Vietnam after exiting the Chinese market. The "Lotte Mall West Lake Hanoi" spans 354,000 sq. meters, boasting 233 stores, a cinema, an aquarium, and an adjoining hotel. This move aligns with Lotte's vision of leveraging Vietnam's burgeoning economic growth, having already invested approximately $2.4 billion since 1996. The conglomerate's commitment to Vietnam contrasts its challenging experience in China, which led to its withdrawal in 2022.
Read more: Nikkei Asia
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