Editor’s Note : Vietnam contributes to joint ventures by leasing land. These lands often come from illegal expropriation of people or purchased at very cheap prices. And sublease them at a price dozens of times higher, the difference will be pocketed by corrupt officials. This has created a class of hundreds of thousands of unfortunated people, deprived of their homes and land.

(Translate from https://www.voatiengviet.com/a/bo-ke-hoach-dau-tu-viet-nam-de-tuot-mat-khoan-dau-tu-cua-intel-lg-chem-do-thieu-uu-dai-/7687032.html)

Recently, Vietnam has lost billions of dollars in investments from multinational firms including Intel and LG Chem because of a lack of appropriate investment incentives, Reuters cited a document from the Ministry of Planning and Investment on July 5.

In a document dated June 29, the Ministry of Planning and Investment said that US chip manufacturer Intel proposed to invest 3.3 billion USD in a project in Vietnam and asked the host country to “support direct money” at 15%, but then the company decided to move the project to Poland. The document states that Korean company LG Chem Ltd also bypassed Vietnam to invest in a battery project in Indonesia, after asking Vietnam to support 30% of the investment cost.

These two companies did not immediately respond when Reuters asked them to comment on the above comments from the Ministry of Planning and Investment. The Ministry plans to submit to the government on July 5 a project to establish an investment incentive fund for the government to approve. The ministry’s document reads: “Recently, many large corporations came to explore investment opportunities in Vietnam but then decided to move to other countries because Vietnam does not have regulations on investment support.”

Vietnam, a key manufacturing base for companies such as Samsung Electronics, Foxconn and Intel, depends heavily on foreign investment for growth. Foreign-invested companies account for about 70% of total export turnover. The document from the Ministry of Planning and Investment confirms a November Reuters report that Intel had canceled a planned investment in Vietnam that would have nearly doubled the US chipmaker’s operations.

The document from the Ministry of Planning and Investment confirms a November Reuters report that Intel had canceled a planned investment in Vietnam that would have nearly doubled the US chipmaker’s operations.

The document provides additional information that Austria-based semiconductor manufacturer AT&S decided to invest in Malaysia after its request for investment support in Vietnam was not met and said Samsung Electronics is moving a number of production activities to India. Reuters was not immediately able to contact AT&S and Samsung Electronics to ask them for comment. Multinational companies are watching Vietnam’s plan to establish an investment incentive fund after the country’s parliament last year approved the OECD’s proposed global minimum corporate tax rate of 15%, effectively is to increase the tax rate that companies must pay.