Formation of a Financial Titan
Singapore was the top investor in Vietnam in 2021, contributing $2.84 billion (28.3% of the total). Marubeni Corporation, a leading sogo shosha (general trading and investment company) from Japan, followed closely with investments totaling $2.27 billion. Sweden was another significant investor, contributing $1 billion.
Marubeni, which has maintained a continual presence in Vietnam since 1941, has diversified into various sectors over the years. The company has invested in consumer goods and manufacturing, securing a dominant share of the local market and bringing Japanese confectionery brands to Vietnam. Marubeni currently operates 50 companies in Vietnam, employing 7,500 people and generating an annual turnover of $3 billion.
One of Marubeni's key investments is the Nghi Sơn 2 coal-fired power complex, a cornerstone of Vietnam's northern power supply. Equipped with advanced technology to meet stringent environmental standards, the complex will be transferred to the Government after 25 years of operation. Marubeni has also constructed over 5,200MW across 12 power plants in Vietnam, including the flagship $2.5 billion Nghi Sơn 2 coal-fired power complex, which went into commercial operation in 2022.
Vietnam's transformation has been underpinned by macroeconomic stability and policy reforms. The country's GDP, which stood at just $8 billion in 1986, is projected to have reached nearly $476 billion in 2024. Vietnam's stable politics, transparent regulations, and ongoing infrastructure investments have strengthened investor confidence. In the first seven months of 2021, total registered foreign direct investment (FDI) in Vietnam reached over $24 billion, up 27.3% year-on-year.
To sustain growth, Vietnam must accelerate institutional reforms, streamline bureaucracy, enhance labour skills, and invest in infrastructure projects, according to Nemoto, the General Director of Marubeni Corporation in Vietnam. Projects like Long Thành International Airport and the proposed North-South high-speed railway are crucial to easing logistics bottlenecks and supporting continued industrialization.
Vietnam's appeal as a global investment destination is further highlighted by the presence of major companies such as Samsung, LG, Intel, HSBC, Coca-Cola, Heineken, Toyota, and Unilever. Poverty in Vietnam has also plummeted, falling from 58% in 1993 to below 3% today.
Marubeni's general director, Yusaku Nemoto, emphasized the firm's growing focus on mergers and acquisitions to support local enterprises. This strategy is expected to further strengthen Marubeni's position in Vietnam, one of Asia's most dynamic economies.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
