Turkey’s investment landscape in Vietnam: Significant potential and opportunities

Turkey is currently the largest FDI from the Middle East in Vietnam, with 43 projects and a total registered investment of USD 1.74 billion, ranking #23 among 147 countries and territories investing in Vietnam. In 2024, in addition to the traditional investors maintaining their positions in the top six, Turkey emerged as the #9 largest investor with 07 newly licensed projects, registering a total investment capital of over USD 731 million. The total registered capital, including new registrations, adjusted registrations, and capital contributions for share acquisitions, exceeded USD 763 million, marking a more than threefold increase compared to the same period in 2023.

1.    An economic overview of Turkey

Turkey ranks as the 19th largest economy in the world and is one of the fastest-growing economies in Asia. Turkey is the largest economy in the Middle East and is strategically positioned on the trade route connecting Asia, Europe, and Africa. The country boasts abundant natural resources and a diverse economic structure, including thriving industries such as mining, textiles, machinery manufacturing, household appliances, food processing, and shipbuilding. Additionally, Turkey’s construction and agriculture sectors are robustly developed. The nation’s tourism industry also significantly contributes to its economy, attracting over 30 million visitors annually.

Turkey is among the few countries globally that maintained positive economic growth during the COVID-19 pandemic. Despite facing certain economic challenges, the nation remains a leading economic hub in the region, particularly excelling in sectors such as defense industries, construction, investment, and consumer goods.

With its strategic geographical location connecting Asia and Europe, coupled with its rising influence and prominence, Turkey serves as a gateway for goods from various countries to access the Middle Eastern and Southern European markets.

2.   Turkey’s investment in Vietnam

Turkey is currently the largest direct investor from the Middle East in Vietnam, with 43 projects and a total registered investment of USD 1.74 billion, ranking 23rd among 147 countries and territories investing in Vietnam. These projects focus on sectors such as manufacturing and processing industries, agriculture, forestry, fisheries, and education and training.

In 2024, in addition to the traditional investors maintaining their positions in the top six, Turkey emerged as the ninth-largest investor with seven newly licensed projects, registering a total investment capital of over USD 731 million. The total registered capital, including new registrations, adjusted registrations, and capital contributions for share acquisitions, exceeded USD 763 million, marking a more than threefold increase compared to the same period in 2023.

In an interview with Voice of Vietnam (VOV), the Turkish Ambassador to Vietnam, Mr. Korhan Kemik, highlighted Vietnam’s critical role for Turkey within the ASEAN region due to its rapidly growing industrial sector and strategic location. He emphasized Turkey’s strengths in textiles, automotive, and electronics, which align well with Vietnam’s industrial growth, particularly in green manufacturing and sustainable consumption. Turkey’s outstanding construction expertise also complements Vietnam’s urbanization needs, including the development of smart cities and logistics centers.

In addition, Vietnam’s participation in global free trade agreements such as the CPTPP and RCEP offers Turkish investors opportunities to access broader Asian markets. Currently, Turkey is one of Vietnam’s leading trading partners in the Middle East. The trade turnover between the two countries in the first 10 months of 2024 reached USD 1.95 billion, reflecting a 3.3% increase compared to the same period in 2023.

Recently, Turkish Airlines officially increased the frequency of flights from Hanoi and Ho Chi Minh City to Istanbul, Turkey, to 07 flights per week. This development not only facilitates convenience for passengers but also significantly boosts economic, trade, and tourism activities between the two countries.

3.    Some notable Turkish projects in Vietnam over the past three years

Hayat Kimya Project: in March 2022, Hayat Holding, the world’s fifth-largest producer of baby diapers, inaugurated the Hayat Kimya factory in Binh Phuoc Province with a total investment of USD 250 million. Covering an area of 32 hectares, the factory produces Molfix-branded baby diapers. Hayat Holding envisions this facility as a production hub for Southeast Asia, with plans to export 40% of its output to Thailand and Malaysia. The group also intends to invest in a tissue paper factory with an annual capacity of 60,000 tons and a detergent factory with a production capacity of 250,000 tons per year.

In August 2023, IC Ictas, a Turkish company, led the Vietur Consortium to win the contract for the construction and installation of passenger terminal equipment at the Long Thanh Airport Project, valued at USD 1.38 billion. The passenger terminal project at Long Thanh Airport began in July 2023 and is expected to be completed by November 2026.

– Vietnam and Türkiye established diplomatic relations in 1978. In 2023, Vietnam and Turkey celebrated the 45th anniversary of the official establishment of diplomatic relations (June 7, 1978 – June 7, 2023).

– Among ASEAN countries, Vietnam is the #2 largest trading partner of Turkey, and Turkey is currently the largest trading partner in the Middle East of Vietnam; the two countries are striving to achieve a bilateral trade turnover of USD 4 billion.

– In February 2023, during the earthquake disaster in Turkey’s Southeast region, the Vietnamese Government contributed 100.000 USD in assistance and deployed rescue personnel to support Turkey in recovering from the aftermath.

Sources: multiple sources