Vietnam remains a safe destination for foreign investors

Update: 23:06 | 03/08/2022

Foreign direct investment (FDI) in Vietnam has yet to make a complete recovery after the disruptions resulting from measures put in place to fight Covid-19 in 2021, but additional investments in existing projects and share purchases are rebounding strongly.

Data released by the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI) showed that FDI pledges in the first half of 2022 reached 14 billion USD, down 6.5% in terms of new projects and 48.2% in terms of capital. However, the positive trend in the investment inflow into Vietnam is the strong rise in capital adjustments, contributions and share purchases by foreign investors.

Vietnam, safe destination, foreign investors, Foreign direct investment, complete recovery, additional investments, investment inflow

Vietnam remains attractive to foreign investors.

Specifically, 487 projects filed for capital increases totalling 6.82 billion USD, with these figures up 5.9% and 65.6% respectively. The average capital increase of a project was also relatively high and the trend could be seen in many electronics and high-tech manufacturing projects.

According to the FIA, rises in capital adjustment reflected the effect of inflation due to political and trade tensions, but also showed continued confidence of foreign investors in Vietnam’s economy and business environment.

The total value of capital contributions by foreign investors rose 41.4% to 2.27 billion USD, while FDI disbursements were estimated at 10 billion USD, up 8.9% year on year, marking the largest increase in the past five years.

Director of the General Statistics Office Nguyen Thi Huong said that although new capital pledges fell 8.1%, a positive trend can still be seen in detailed data, reflecting the overall recovery of manufacturing and foreign investment activities, as well as foreign investors’ continued confidence in Vietnam’s business environment as a safe and attractive investment destination.

Commenting on the FDI prospects for the latter half of the year, the MPI cited analyses by domestic and foreign research agencies that claim the investment outlook is less positive. In this context, the FDI inflow into Vietnam continues the recovery trend thanks to the country’s successful containment of Covid-19 as well as its advantages in political and macroeconomic stability and foreign investors’ confidence in Vietnam’s policy of accompanying the business community.

A recent survey by HSBC on over 1,500 companies from the world’s six largest economies operating or having plans to operate in Southeast Asia shows that Vietnam is emerging as one of the world’s manufacturing hubs.

According to the bank, Vietnam has an enviable position that has been achieved due to the favourable policies deployed by the Government, especially around free trade agreements, while the trend of more global companies moving to Vietnam is not temporary but is actually much more long term and very strategic.

The FIA noted two points in the current FDI situation. Firstly, capital pledges are recovering over the months but the increase has not met expectations, and secondly the Russia-Ukraine conflict is projected to lead to the relocation of investment in these two countries to Asia, which can benefit Vietnam.

In order not to miss the opportunity, the MPI has suggested focusing on fine-tuning the mechanism in a way that facilitates foreign investors and introduces policies to attract quality FDI inflow that are appropriate to each sector. Vietnam should proactively implement investment promotion campaigns, work with the world’s large companies to discuss and share investment opportunities in Vietnam.

At the same time, it is necessary to enhance transport links between provinces and cities as well as step up administrative reform and improve the business climate and workforce quality. For their part, domestic companies need to enhance their technological capabilities, labour and management quality so that they can secure orders from foreign-invested companies.

Vietnam draws over 10.8 billion USD of FDI in four months
Vietnam attracted over 10.8 billion USD of foreign direct investment (FDI) in the first four months of this year, equivalent to 88.3 percent of the amount recorded in the same period last year, according to the Ministry of Planning and Investment (MPI).
FDI enterprises pay nearly 360 billion VND to budget
(BGO) - Bac Giang province now has more than 500 foreign direct investment (FDI) enterprises with regular contribution to provincial budget, reported the provincial Department of Taxation in Bac Giang province.
Production value of FDI sector increases 33.8 percent year on year
(BGO) - The production value in Bac Giang province hit nearly 61 trillion VND (2.66 billion USD) in the first quarter of this year, up over 31 percent year on year.
Thai Nguyen ranks second in FDI attraction in two months
The northern province of Thai Nguyen with the issuance of of a licence to to Samsung Electro-Mechanics Vietnam Co., Ltd under Samsung Corporation of the Republic of Korea to add 920 million USD to its project, ranked second in attracting foreign direct investment (FDI) in the first two months of 2022, behind Bac Ninh.
Bac Giang provincial leader visits and extends Tet greeting to local FDI enterprises
(BGO) – On January 19, the Vice Chairman of Bac Giang provincial People’s Committee (PPC) Phan The Tuan paid a field trip to visit, encourage and extend Tet greeting to some foreign direct investment (FDI) businesses in the province.

Source: NDO

Bình luận mới vừa được thêm vào. Click để xem
Mới nhấtHay nhấtXếp theo: