Illustrative image (Photo: VNA)

Hanoi - Vietnam’s process manufacturing sector has to date attracted 252 billion USD in foreign direct investment (FDI), accounting for nearly 60 percent of the total foreign capital poured into the Southeast Asian country.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, there are currently 34,898 valid FDI projects worth 426.14 billion USD in Vietnam.

In the first half of this year, the country lured 16.03 billion USD in FDI, of which the sector accounted for 8.84 billion USD, or 63% of the total.

The sector has been attractive to the world’s major groups such as Samsung, LG, Canon, Honda, and Toyota, reflected through their continuous expansion of investment in Vietnam.

Notably, the Republic of Korea (RoK)’s Samsung Group, which was officially licensed to invest in Vietnam with the Samsung Electronics Vietnam factory in Bac Ninh province, has expanded their operations to other localities, including Hanoi, Thai Nguyen province, and Ho Chi Minh City.

Andrew Lee, Korean Desk Manager at Savills Vietnam, said that the Korean business community appreciates Vietnam’s process manufacturing sector thanks to the country’s advantages in labour force, political stability, and inclusive and extensive international integration.

To make FDI projects in the sector effective, economists are advising Vietnam to be stricter in selecting projects to attract those with good financial potential, less labour intensive, and bringing about high added value.