Vietnam: An Alluring Destination for Foreign Investment

DNHN - Vietnam has benefits in terms of upholding macroeconomic stability, managing inflation, attaining positive growth despite obstacles, and consistently boosting the investment and corporate environment, according to Mr Tran Quoc Phuong.

An important sequence of events began when more than 200 Dutch companies travelled to Vietnam in early 2023 to take part in thirty seminars promoting investment. More than 200 top companies, including Samsung, LG, SK, Hyundai Motor, Lotte, Intel, Marvell, and others, investigated the Vietnamese market during the visits of the presidents of South Korea and the United States of America. This generated a great deal of interest among foreign investors.

The significant rise in attendance at the 2023 Investor Conference in Ho Chi Minh City, according to Mr Don Lam, CEO and Co-Founder of VinaCapital Group, is indicative of Vietnam's increasing allure as a top investment destination.

As evidenced by the Foreign Investment Cooperation Strategy for the period 2021–2030 and the Government's Action Plan to implement the Strategy, Vietnam is currently a bright point on the map of FDI attractiveness. Attracting FDI projects with high-added value, cutting-edge technology, contemporary management, and connections to global supply and production chains is the shared objective.

Vietnam's appeal is supported by evaluations from reputable international organisations and specialists. Despite difficulties with international trade, HSBC claims that Vietnam continues to lead the way in luring high-quality FDI. Vietnam is regarded by the IMF as one of Asia's most desirable investment locations, with benefits including a youthful labour force, affordable prices, stable political conditions, and an open legal system.

The World Bank (WB) highlights that Vietnam's growing economic integration with the rest of the world opens up new business opportunities for foreign companies. Large foreign companies with a variety of projects ranging from manufacturing to agriculture and technology have rushed to Vietnam in recent years, including Toyota, Samsung, Foxconn, and other worldwide brands.

Notably, Vietnam has benefited from billion-dollar registration and investment from Foxconn, the top electronics company in the world, and Pegatron, the second-largest electronics manufacturer in the world, both of which have created jobs and advanced the economy of Vietnam.

The potential of Vietnam's consumer sector and its green transformation are of particular appeal to investors, notably in the semiconductor and chip industries. While Apple, Google, and other global giants intend to grow their operations in Vietnam, AEON Group sees the nation as a viable market.

Prime Minister Pham Minh Chinh promised to enhance further the business and investment climate and support investors in overcoming challenges during a session with foreign investors. This shows Vietnam's proactive strategy to draw in foreign investment, and it also gives the economy momentum for sustained growth in the upcoming years.

Bich Phuong