What does Vietnam do to attract quality, effective and sustainable FDI

DNHN - Although Vietnam still has a great deal of potential to attract foreign investment, experts assert that "several bottlenecks must be removed so that FDI inflows to Vietnam become a source of quality, efficiency, and sustainability."

In the first four months of 2023, Vietnam attracted nearly 8.88 billion USD in FDI, an increase of 82.1% compared to the same period in 2022. Realized capital amounted to approximately 5.85 billion USD, a decrease of 1.2%. Currently, businesses from Singapore are investing nearly 2,2 billion USD, which accounts for nearly 25% of total FDI in Vietnam; ranking second with more than 22% of investment capital, or nearly 2 billion USD, are corporate brands from Japan.

Mr. Luu Hai Minh, Vice President of the European Chamber of Commerce in Vietnam (Eurocham), stated that up to 30 percent of Eurocham members are optimistic about the potential for growth in the Vietnamese market, especially since the country's economic growth has accelerated in recent years. After the first quarter of production and business activities, the following statement was made: "In Vietnam, the primary growth drivers of the Vietnamese economy are maintaining a fairly positive level, or recent policy changes in Vietnam have been positive." Particularly efforts and commitments to reform, as well as commitments to public investment in the coming year... This is the driving force that will increase the confidence of the European business sector in 2023."

According to Associate Professor, Dr. Tran Dinh Thien, Former Director of the Vietnam Institute of Economics, "The first step in attracting investment is to carefully manage connectivity infrastructure, urban infrastructure, and industrial infrastructure. Industrial parks constitute the industrial infrastructure. And if domestic market reform is improved, foreign investment will be more likely to be attracted. Excellent investment. A large number of high-quality foreign investors will exert pressure to compel additional reforms."

Assoc. Prof. Dr. Dao Ngoc Tien - Vice President of Foreign Trade University acknowledged: If they are interested in attracting investment, especially from the EU, they should focus more on digital economic development and green growth. However, it is also necessary to attract investment from Asia, as the supply chain has changed significantly since the introduction of Covid, and countries are now seeking to shorten the supply chain by establishing closer supply chains.

The total registered FDI in Vietnam reached nearly 27.72 billion USD in 2022, while the realized FDI capital reached a record high of 22.4 billion USD, an increase of 13.5% over the same period in 2021. This is the highest level of FDI capital over the past five years (2017-2022). Vietnam has attracted nearly 438.7 billion USD in FDI from 1986 to 2022, of which 274 billion USD have been disbursed, representing 62.5% of the total valid registered investment capital.

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