Vietnam has a “golden chance” to attract a new wave of foreign investment, especially to economic zones (EZs) and industrial parks (IPs), according to Deputy Minister of Planning and Investment Tran Quoc Phuong.
The Investment and Trade Promotion Center Ho Chi Minh City (ITPC) and Vietnam International Arbitration Center (VIAC) coordinated to organize the Investment Support Forum and summarize the series of investment promotion events in 2022 on September 15.
Vietnam’s process manufacturing sector has to date attracted US$252 billion in foreign direct investment (FDI), accounting for nearly 60 percent of the total foreign capital poured into the Southeast Asian country.
Foreign direct investment (FDI) in Vietnam continuously increased in the first half of this year, especially in the real estate sector that attracted US$3.15 billion, making up 22.5 percent of the total registered capital.
With its advantages and thorough preparation in terms of infrastructure, transport and human resources, after the Covid-19 pandemic is put under control, the key southern economic region remains the leading destination for foreign direct investment (FDI) flows.
In the first quarter, realized foreign direct investment (FDI) in Vietnam was estimated at US$4.42 billion, up 7.8 percent over the same period last year. This is the highest level of Q1 in the past five years.
The total registered foreign investment capital in Vietnam by March 20, 2022, reached US$8.91 billion, down 12.1 percent over the same period last year. However, realized FDI capital reached the highest level compared to that in the first quarter of the years from 2018 to 2022.
According to research by Savills Vietnam, Vietnam's industrial production in the first two months of 2022 increased by 8.4 percent over the same period last year. The growth rate improved sharply in February compared to the previous month.
Although capital from Foreign Direct Investment projects is essential for the growth of the economy, there are many who believe that Foreign Direct Investment (FDI) projects are being favored much more than domestic enterprise projects.
Vietnam is likely to be a key beneficiary of the Regional Economic Comprehensive Partnership (RCEP) regarding tariff reductions and foreign direct investment, Singapore's leading consumer bank DBS said in a recent report.
The Ho Chi Minh Export Processing Zone and Industrial Park Authority (Hepza) Business Association, on October 8, said that foreign investment in Vietnam in general and HCMC, in particular, has many positive signs.
Despite a decrease in foreign direct investment (FDI) inflows into Vietnam in recent months due to the impact of the Covid-19 pandemic, economists assessed Vietnam remains attractive to foreign investors and needs to take advantage of FDI attraction opportunities to boost economic growth.
Foreign investment inflows into Vietnam during the first nine months of this year rose 4.4 percent year-on-year to US$22.15 billion despite the impact of Covid-19, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
Foreign investors still have high expectations for Vietnam's investment environment despite facing many difficulties at the moment due to the Covid-19 pandemic. Currently, there are still many solutions and ways to improve foreign investment attraction and prepare conditions to be ready to welcome the investment wave in the new normal.
Foreign investors have poured US$15.27 billion of investment in Vietnam so far this year, equivalent to 97.4 percent of the amount recorded in the same period last year, according to the Ministry of Planning and Investment (MPI).