Foreign investment: A key driver of Vietnam's economic growth

DNHN - In the face of global economic fluctuations, attracting foreign direct investment (FDI) has become a bright spot for Vietnam.

One noteworthy project is Samsung Display’s $1.8 billion initiative, currently under discussion between Bac Ninh Province and Samsung Vietnam. If approved, this project would not only bring substantial capital to Vietnam but also position the country as a production hub for next-generation displays, enhancing its role in the global supply chain.

Alongside Samsung, South Korea's Hyosung Group is planning to expand its investment in Vietnam, with an additional $4 billion expected to be allocated across data centers, high-tech materials production, and a biofuel plant. Hyosung Chairman Cho Hyun-joon emphasized his confidence in Vietnam's investment environment, stating that the country is poised to become Asia's manufacturing center.

According to government reports, in the first nine months of 2024, Vietnam attracted $24.78 billion in foreign investment, marking an 11.6% increase compared to the same period last year. Projections suggest that total registered capital for the year may reach $39-40 billion, with implemented capital estimated at $23 billion. These figures reflect not only foreign investors' commitments but also Vietnam's capacity to absorb and disburse capital effectively.

The National Assembly’s Economic Committee has also noted strong growth in foreign investment disbursement, with $17.34 billion disbursed over nine months, an 8.9% increase from the previous year. This is the highest level since 2021, underscoring investors’ continued confidence in Vietnam’s investment climate.

Meanwhile, Standard Chartered Bank recently issued an optimistic forecast for Vietnam’s economy, projecting growth of 6.9% in the fourth quarter of this year and 7.5% in the first half of 2025. The recovery in trade and business activities, coupled with foreign direct investment, will be key drivers of growth in the coming years.

Foreign investment has proven foundational to the recovery of exports and industrial production. Investment projects in high-tech, semiconductor, and electronics sectors not only boost production capacity but also add significant value to the economy.

Despite positive signals, attracting large FDI projects is not without challenges. Given the current global investment climate, many investors are more cautious and tend to focus on countries with strong geopolitical connections. This dynamic requires Vietnam to pursue creative and effective solutions to sustain and attract investment capital.

The Ministry of Planning and Investment has introduced multiple strategies to develop the semiconductor and other high-tech industries through 2030. However, high-quality workforce training to meet the demands of these pioneering sectors is essential.

Additionally, addressing the global minimum tax mechanism poses a major challenge. Vietnam needs timely policies to support investors, including establishing an Investment Support Fund. However, the Draft Decree on establishing and managing the Investment Support Fund has yet to be approved by the government, underscoring the urgency of this matter.

Foreign investment is playing a critical role in driving Vietnam’s economic growth. Major projects from leading global corporations not only bring capital but also help Vietnam assert its position in the global supply chain. To sustain this growth momentum, Vietnam must continue improving the investment environment, focus on high-quality workforce development, and respond flexibly to global fluctuations. Only by doing so can Vietnam remain an attractive destination for investors in the future.

Phan Chinh