ALTAS Featured in Article: Sustainable Investment Solutions for FDI Businesses in the Semiconductor and Electronics Industry

Content of the article (excerpt from Uytinthuonghieu.com):

Sustainable Investment Solutions for FDI Enterprises in the Semiconductor and Electronics Industries

In the context of global supply chain challenges caused by the US-China trade war, economic crises, the COVID-19 pandemic, conflicts in Ukraine and the Middle East, FDI inflows are declining in many regions but shifting toward Asia, including Vietnam. By 2023, Vietnam had approximately 39,140 FDI projects from 144 countries and territories, with a total investment capital of $468.9 billion, contributing 20.8% to GDP and 73.1% to total export turnover.

In the first nine months of 2024, investors from 98 countries and territories invested in 18 out of 21 economic sectors, with manufacturing, processing, and real estate taking the lead. Singapore topped the list with $7.35 billion, followed by China and South Korea. Total registered capital, including new, adjusted, and share purchase investments from FDI enterprises, exceeded $24.78 billion, marking an 11.6% increase compared to the same period in 2023.

Vietnam's Strong Appeal in the Semiconductor and Electronics Industries

The shifts in global political dynamics have significantly impacted investment trends, particularly in the semiconductor and electronics sectors. These are strategic global industries, and Vietnam is solidifying its position in the regional and global semiconductor and electronics ecosystems thanks to its favorable logistics location and investment incentives.

Vietnam is emerging as a potential hub for semiconductors and electronics, evident in the establishment of facilities by international manufacturers like Samsung, Intel, LG, Foxconn, Pegatron, Compal, and Wistron. Taiwan ranked fourth in FDI capital in Vietnam, with multiple new production projects in 2024. For instance, Tripod Technology, one of the world’s leading manufacturers of electronic circuit boards, made significant investments in Vietnam by acquiring FICT Vietnam (a Fujitsu Group member) in Bien Hoa 2 Industrial Park, Dong Nai, in 2023. They further expanded with a high-tech factory project in Chau Duc Industrial Park, Ba Ria-Vung Tau. Once operational, this factory will employ over 1,700 workers, producing 372,000 m² annually, equivalent to 1,800 tons/year.

Supporting FDI Enterprises with Sustainable Investment

For FDI enterprises like Tripod Technology to successfully implement sustainable investments in Vietnam, consulting needs go beyond licensing and project implementation support. It requires a deep understanding of the legal environment, planning, and market conditions.

Cultural and legal differences pose significant challenges for FDI enterprises. Thus, they need support from professional consulting partners throughout the process, from market research to project execution. FDI businesses seek comprehensive and efficient consulting models, ensuring a holistic understanding of legal frameworks to develop appropriate business strategies. Consulting partners must not only provide basic legal services but also engage deeply in every project phase, offering insights into market conditions, investment procedures, legal due diligence, and negotiations with partners and regulatory authorities.

By offering meticulous advice on market conditions, binding legal requirements, and optimal strategies, consulting partners help clients mitigate risks in their business and investment activities in Vietnam.

Altas: A Trusted Partner for FDI Enterprises

Altas has supported numerous FDI enterprises, including Tripod Technology, by providing comprehensive consulting solutions ranging from market research reports to collaboration with government agencies to propose necessary investment plans. Altas also represents investors in negotiations on land, environmental, power, and construction-related matters—complex areas in industrial investments in Vietnam.

Beyond initial advisory roles, Altas continues to accompany FDI enterprises throughout and after project implementation. As a regular legal advisor, Altas ensures timely resolution of compliance issues related to corporate governance, accounting, taxes, labor, etc., enabling businesses to focus on growth and development.

The success of FDI enterprises not only demonstrates Vietnam’s attractiveness as an investment destination but also highlights the critical role of professional consulting partners like Altas. With extensive experience and a deep understanding of the legal landscape, Altas proudly acts as a bridge, helping investors overcome challenges and achieve steady progress in new markets.