Investment News

FDI capital 'wades' upstream


          Foreign direct investment (FDI) into Vietnam has rebounded after many months of decline, with large-scale projects appearing.

The moves of FDI investors are showing many positive signs, realizing previous commitments. Hyosung Group (Korea) recently announced a plan to invest in a carbon fiber factory, with an investment capital of nearly 1 billion USD, of which the first phase investment is 160 million USD, in Ba Ria - Vung Tau province. This plan is similar to what Mr. Cho Hyun Joon, Chairman of Hyosung Group, shared at the Vietnam - Korea Business Forum, within the framework of the recent visit to Vietnam by the Korean President.

Mr. Cho Hyun Joon said that the group has invested more than 20 years in Vietnam with a total capital of about 20,000 billion Won (about 3.5 billion USD), employing more than 9,000 workers. Hyosung considers Vietnam a strategic and key market and wants to place the next 100 years of the group's future in Vietnam.

 FDI into Vietnam has rebounded after many months of decline. Photo: Nhu Y.

Total FDI capital into Vietnam increased again in July, with the important contribution of expanding the LG Innotek Hai Phong project by 1 billion USD. This helps Hai Phong rise to second place in the country in attracting FDI, only behind Hanoi.

Many localities also witnessed signs of improvement in attracting FDI, with a series of investment certificates being awarded. At the same time as announcing the provincial planning, Long An awarded investment certificates for 9 projects with a total capital of 1.7 billion USD.

According to the Foreign Investment Agency (Ministry of Planning and Investment), as of July 20, total FDI capital into Vietnam reached nearly 16.24 billion USD, an increase of 4.5% over the same period. Not only registered capital, but disbursed capital in 7 months also increased slightly by 0.8% over the same period last year (estimated at 11.58 billion USD).

The growth rate of new projects is greater than the growth rate of total investment capital, showing that small and medium-sized foreign investors continue to be interested and confident in Vietnam's investment environment. According to the Foreign Investment Department, new projects still focus on provinces and cities that have many advantages in attracting FDI such as good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in business. investment Promotion…

Despite ongoing external challenges, HSBC Bank believes that Vietnam's FDI prospects remain intact. Compared to other countries in the region, in terms of percentage of GDP, Vietnam is still the second largest FDI recipient in ASEAN, only after Malaysia.

To increase attraction and retain FDI capital flows in the context of the upcoming global minimum tax, Vietnam is actively improving the investment environment and finding solutions to cope. The Ministry of Planning and Investment believes that changing the approach and adding new forms of incentives and investment support in the context of global minimum tax implementation is necessary to ensure competitiveness. , the attractiveness of the investment environment in Vietnam.

According to