Vietnam Loses Multi-Billion Dollar Investments Due to Lack of Incentives

Vietnam has missed out on major investments from multinational corporations such as Intel and LG Chem due to insufficient investment incentives. The country's investment ministry revealed that companies moved their projects to other countries, highlighting the need for an investment incentive fund to attract foreign investments.

Vietnam has missed out on significant multi-billion dollar investments from global giants, including Intel and LG Chem, owing to a lack of sufficient investment incentives, according to a document by the country's investment ministry reviewed by Reuters.

U.S. chipmaker Intel initially proposed a $3.3 billion investment in Vietnam, requesting 'cash support' of 15%. The plan was later shifted to Poland. Similarly, South Korea's LG Chem opted for a battery project in Indonesia after seeking 30% investment cost coverage from Vietnam, as noted in the same document dated June 29.

The Vietnamese Ministry of Planning and Investment is presenting plans for an investment incentive fund to the central government, emphasizing that numerous large groups have reconsidered their investment strategy due to Vietnam's inadequate support regulations.

(Disclaimer: With inputs from agencies.)