Trans-Pacific Partnership (TPP) between the 12 members, including Vietnam, has recently concluded negotiations after more than 5 years of hard working.
Before that, many enterprises with foreign direct investment (FDI) have come to establish factories and business in Vietnam to prepare for the economic benefits that TPP brings.
According to Long An Economic Zone Authority (LAEZA), up to September 30th, they have received 122 investment projects, increase by 14.02% compared to the same period in 2014.
In which there are 67 FDI projects with a total investment of over 395 million USD, increase by 2.37% over the same period in 2014. Enterprises mostly invest in such areas as apparel, footwear, textile, plastic… and factories located mainly in the industrial zone in Ben Luc, Duc Hoa, Can Giuoc.
Tan Tao Group (ITA), the investor of Tan Duc Industrial Park said that in September, Long An Provincial People’s Committee, the Ministry of Science and Technology and the Ministry of Natural Resources and Environment have approved Trillions Corporation (USA) to invest in Tan Duc industrial park phase 2 in Duc Hoa.
This project is a 30 hectares complex with an expected investment of 120 million USD, which is invested by the Trillions Group and their partners like Cosmo, CHA Technologies, Starensier US, Mountian Star, Billion TW… to provide products for Adidas and Nike, as well as catching up with the opportunities from TPP in the future.
The business opportunities after Vietnam signed the free trade agreement (FTA) and the outlook from TPP has attracted waves of FDI as well as the shift of investment projects from China to Vietnam.
Earlier, in August, Long An Provincial People’s Committee has granted investment certificate for the spinning factory of Huafu Group (Hong Kong) with an area of 35 ha and a total investment of over 300 million USD.
The project has a planned capacity of pulling 30,000 tons mill per year, estimating to contribute more than 3,000 jobs for local workers.
Huafu is one of the largest economic conglomerate specialized in spinning with experience of more than 20 years of development in Hong Kong. Moreover, they are the world’s largest supplier of high-end color yarn for the textile industry of more 60 countries and regions, such as Europe, America, Japan, Korea and Southeast Asia.
Regarding FDI in the past 9 months, total FDI in industrial parks, economic zones throughout the country reached more than 8.7 billion USD, increase by 12% over the same period.
A recent study from Standard Chartered Bank showed that there is a shift of investment capital from China to ASEAN countries to take advantage of opportunities.
Approximately 44% of units involved in the study chose Vietnam because of large domestic market, 29% choose because of lower operating costs and 18% choose because of abundant labor.
As for the garment industry, when the TPP takes effect, this is the advantaged industry therefore large foreign companies have landed in Vietnam in recent years.
To welcome new waves of investment, many localities like Ho Chi Minh City and Long An have adjusted the investment policy or extended the area of the industrial park.
Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.