Billion-dollar projects stir hope of economic recovery

A number of billion-dollar projects are in the works, signaling a robust economic recovery. Last week Danish toy company Lego received a license for a $1-billion factory in the southern province of Binh Duong. The company’s second-largest factory in Asia and sixth largest in the world is among the fastest to be approved in Vietnam with all procedures being completed within six months.

Local companies have also been launching billion-dollar projects.

Steel giant Hoa Phat Group this month secured credit from eight banks for its Hoa Phat Dung Quat 2 plant, its biggest to date with a total investment of VND85 trillion.

Diversified group T&T began work on a VND35-trillion resort and golf project in the northern province of Phu Tho at the end of last month, hoping to take advantage of the expected recovery in tourism in the next few years.

Nguyen Van Toan, deputy chairman of the Vietnam Association of Financial Investors, said the country has the potential to attract $40 billion in FDI this year, a 27 percent increase from last year.

It has shown resilience amid Covid-19 and focused on digital transformation during social distancing, and the government continues to prioritize FDI, he added.

Nguyen Mai, chairman of the association, said the resumption of international travel on March 15 would allow more foreign investors to enter Vietnam without difficulty and therefore make business decisions quickly.

American, European, and Japanese companies are looking to restructure supply chains and Vietnam could take this opportunity to attract their investments, he said.

The key advantages for foreign companies here are the availability of land and human resources, he said.

The government wants to make 2022 the year of recovery from Covid, and has set a GDP growth target of 6-6.5 percent compared to 2.58 percent last year.