Vietnam is still a reliable address for foreign capital flows

With open and airy investment attraction policies and a favorable, stable and constantly improving investment and business environment, Vietnam has become one of the leading countries and achieved many important achievements. important in attracting foreign investment.

 Manufacturing and assembling Ford cars at Ford Vietnam Company Limited (Hai Duong City). (Photo TRAN HAI)

Although it has not recovered to pre-Covid-19 pandemic levels, the decline in foreign direct investment (FDI) flows into Vietnam is slowing down, showing foreign investors' confidence in the investment environment. Vietnamese private and business.

Positive signals

In the first six months of 2023, total FDI capital into Vietnam reached 13.43 billion USD, equal to 95.7% over the same period. Director of Industry and Construction Statistics (General Statistics Office) Phi Huong Nga commented that compared to the same period in 2022, FDI attraction decreased by 4.3% but there were positive signs. That is, the number of newly registered investment projects continues to increase and the capital contribution and share purchase activities of foreign investors have improved.

Compared to the same period in 2022, FDI attraction decreased by 4.3% but there were positive signs. That is, the number of newly registered investment projects continues to increase and the capital contribution and share purchase activities of foreign investors have improved.

Director of Industrial and Construction Statistics Department Phi Huong Nga

Specifically, new investment capital reached nearly 6.5 billion USD, a sharp increase of 31.3% and a 71.9% increase in the number of new projects over the same period; Capital contributed and shares purchased by foreign investors increased by 76.8%. The additional registered capital alone decreased sharply by 57.1% although the number of projects adjusted to increase capital still increased by 29.8%. New investment projects still focus on localities that have many advantages in attracting FDI capital such as: Hanoi, Ho Chi Minh City, Bac Giang, Binh Duong, Hai Phong, Bac Ninh, Dong Nai... Investment from Asia, traditional investment partners such as Singapore, Japan, China, Korea, Hong Kong, Taiwan (China) still account for a large proportion, up to 76.1% of total FDI capital. nationwide registration in the first six months of the year. Implemented investment capital of projects reached about 10.02%, up 0.5% over the same period.

"These numbers confirm foreign investors' confidence in Vietnam's stable macroeconomic policy and safe investment environment," commented Ms. Phi Huong Nga. However, at this time, the growth rate in the number of new projects is greater than the growth rate in total new investment capital, showing that small and medium-sized foreign investors continue to be interested in and confident in Vietnam's investment environment. Vietnam and decided to expand investment. Meanwhile, large corporations are carefully considering continuing to make large investments in Vietnam amid the impact of the global minimum tax policy taking effect from 2024.

The positive point is that the prospect of attracting FDI capital is forecast to accelerate in the last months of the year thanks to the ability of Korean and American businesses to realize investment opportunities through high-level diplomatic activities. takes place in the first half of the year. At the Vietnam-Korea Business Forum at the end of June 2023 within the framework of the official visit of Korean President Yoon Suk Yeol to Vietnam, more than 100 cooperation memoranda were signed by businesses from both sides, exchange.

 Assembling air conditioners at Daikin Vietnam Company, Thang Long II Industrial Park (Hung Yen province). (Photo by DUC AN)

Mr. Lee Jae - yong, Chairman of Samsung Group, shared that this enterprise has invested 18 billion USD in Vietnam and will continue to accompany Vietnam, including innovation. Chairman of Samsung Group also affirmed that Vietnam's development is also the development of Korean businesses.

Previously, within the framework of activities to celebrate the 10th anniversary of the Vietnam-US comprehensive partnership, a high-level business delegation of the US-ASEAN Business Council, including representatives of more than 50 large corporations, also came to Vietnam. Nam explores investment opportunities. Through many meetings and discussions on policy-related issues, sales, supply and investment opportunities with Vietnamese ministries and branches, American businesses affirmed that they will continue to invest and expressed their hope. wants to support Vietnam's efforts to maintain macroeconomic stability and develop sustainable supply chains; Committed to being a reliable partner and resource promoting common economic goals and priorities.

These activities open up the expectation that Vietnam will attract more high-tech projects in the strategy of "building a nest to welcome the eagle" in areas where investment is encouraged such as green energy, digital economy, and healthcare. , semiconductor chips…

Ready to welcome a new wave of investment

According to Deputy Minister of Planning and Investment Nguyen Thanh Trung, over the past 35 years, the foreign-invested sector has always been identified as an important component of the Vietnamese economy, encouraged by the Party and State. , creating conditions for long-term development, healthy and equal cooperation and competition with other economic sectors.

Over the past 35 years, the foreign-invested sector has always been identified as an important component of the Vietnamese economy, encouraged by the Party and State, creating conditions for long-term development, cooperation and healthy and equal competition with other economic sectors.

Deputy Minister of Planning and Investment Nguyen Thanh Trung

With open and airy investment attraction policies and a favorable, stable and constantly improving investment and business environment, Vietnam has become one of the leading countries and achieved many important achievements. important in attracting foreign investment.

The United Nations Conference on Trade and Development (UNCTAD) predicts that competition among developing countries in attracting foreign investment will be fierce, especially when foreign investment flows are forecast to decrease. in 2023, but the need to attract investment capital for the recovery and development period after the Covid-19 epidemic is increasing. Therefore, attracting FDI capital into Vietnam is facing many difficulties and challenges, creating pressure to promote innovation in thinking, creativity, and creating new visions to thereby open up new opportunities and motivations in the future. development cooperation.

According to Ms. Phi Huong Nga, in the coming time, the Government needs to focus on implementing many effective solutions to attract quality FDI capital flows. First of all, it is necessary to continue to review, supplement and improve institutions, substantially reduce business conditions that are barriers to investment and business activities; Promote administrative reform and effectively implement one-stop procedures to create a favorable business environment for businesses to establish and develop.

At the same time, review and amend preferential policy mechanisms to attract foreign investment in the context of applying global minimum tax; improve the quality of labor resources and develop synchronous transport infrastructure connecting provinces and economic regions to facilitate the attraction of FDI capital; focus on meeting the requirements of transnational corporations regarding negotiation time, signing agreements and implementation; Prioritize strategic investors; create a global production chain.

In addition, necessary conditions must be prepared to attract investment, including reviewing and supplementing clean land funds; electricity planning; training high quality human resources; additional policies to develop supporting industries; develop regulations and standards as a new filter to select FDI investors with advanced technology and the ability to withstand external pressure for sustainable development and ensure national security.

According to nhandan.vn