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Vietnam has missed out on multibillion-dollar investments by multinationals including Intel Corp and LG Chem Ltd because it lacks sufficient investment incentives, the Vietnamese Ministry of Planning and Investment said in a document reviewed by Reuters.

US chipmaker Intel had proposed to invest US$3.3 billion in a project in Vietnam and asked the country for “cash support” of 15 percent, but later decided to move the project to Poland, the ministry said in the document dated on June 29. Similarly, LG Chem opted for Indonesia over Vietnam after seeking a 30% investment cost coverage.

The ministry document states that Vietnam lacks regulations on investment support, leading major companies to relocate their projects to other countries.

While Vietnam remains an important manufacturing hub for companies such as Samsung, Foxconn, and Intel, it heavily relies on foreign investment for its economic growth. Companies with foreign investment account for around 70% of Vietnam's total exports.

Despite these setbacks, Vietnam's economy continues to grow at a rapid pace. The government predicts a growth rate of 6.5% or higher for this year, driven by improvements in industrial and construction sectors. The International Monetary Fund (IMF) projects a 6% GDP growth for Vietnam in 2024, making it one of Asia's fastest-growing economies.

Editor：Lulu

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