Measures needed to sustain FDI growth trend: expert

Nearly 8.88 billion USD in foreign investment was poured into Vietnam in the first four months of 2023. (Photo: VNA)

Hanoi (VNA) – Foreigninvestors still put their trust in the Vietnamese economy, but it is importantto take measures for sustaining the upward trend in foreign direct investment (FDI),an expert has said.

In the first four months of 2023,foreign investment projects disbursed about 5.85 billion USD in capital,falling 1.2% year on year, but this rate still rose 1 percentage point from thefirst quarter.

Meanwhile, foreign investorsregistered nearly 8.88 billion USD for new and existing projects and contributingcapital to or purchasing shares of domestic companies, equivalent to 82.1% ofthe amount recorded in the same period last year, according to the Ministry ofPlanning and Investment.

The ministry said although the disbursedcapital of FDI projects declined, it still improved from the first monthsof the year. The newly registered capital bounced back after dropping slightly inthe first three months, up 11.1% from Q1, while the number of new projectscontinued to increase from the same period last year and surged 65.2% from Q1.

The growth in the number of newprojects has outpaced that in total registered capital, it pointed out.

Those statistics indicate thatsmall- and medium-sized foreign investors maintain their trust in Vietnam’sinvestment climate. However, major enterprises remain prudent amid impacts ofthe global minimum corporate income tax.

A section of the North-South Expressway (Photo: laodong.vn)

Between January and April, the projectsworth less than 1 million USD accounted for nearly 70% of the new ones but justnearly 2.2% of the total newly registered capital.

They concentrated in the localities boasting many advantages for foreign investment attraction such as Hanoi, BacGiang, Ho Chi Minh City, Binh Duong, Dong Nai, Bac Ninh, and Hai Phong.

Asian investors still formed thelargest proportion. Among them, Singapore, Japan, China, Taiwan (China), HongKong (China), and the Republic of Korea made up 75.1% of the four-month foreigninvestment.

Dr Ta Dinh Hoa from the Academy ofFinance told the Lao dong (Labour) daily that despite certain stagnation, FDIattraction in the first months has improved, showing foreign investors still keeptheir high expectations for the Vietnamese economy.

It is important to devise measuresfor sustaining the growth trend, he opined, recommending the country step updeveloping infrastructure, especially key transport projects, industrial parks,and export processing zones, to enhance its attractiveness to FDI.

Besides, it is also necessary tokeep up with the global trend of strongly investing in green factors like greentransport and green credit so as to attract foreign investors in a qualitative andsustainable manner, Hoa suggested./.

VNA