Hana Kovi Vietnam, a RoK-invested garment company in Bac Giang province. Vietnam expects to see a significant increase in FDI this year. (Photo: VNA)Nearly5 billion USD worth of FDI was poured into the country in the first two monthsof this year, equivalent to 91.5 percent against the same period last year, apositive signal considering how the pandemic heavily affected theentire economy.
PhanHuu Thang, former Director of the Ministry of Planning and Investment's ForeignInvestment Agency, said that FDI companies managed to cope with theimpact of the pandemic and maintain investment in Vietnam thanks to theirresilience and solid foundation.
Besides,the Government's efforts to control the pandemic and maintain macroeconomicstability have reassured the FDI community and helped draw investmentflow into the country.
Notably,the disbursed FDI totalled 2.68 billion USD in the first two months of thisyear, representing a rise of 7.2 percent against the same period last year, Thangsaid, adding that this reflected foreign investor confidence in Vietnam’sinvestment environment.
EuroChamVice-Chairman Nguyen Hai Minh said that many foreign investors saw Vietnam asan attractive destination, with many deciding to invest in the countryeven in the context of the pandemic.
Forexample, Danish toymaker Lego in December last year decided to invest more than1 billion USD in a new toy factory in Binh Duong province.
Minhsaid that many companies who wished to shift their production to Vietnam hadbeen waiting for the reopening to foreign investors to travel to the country tostudy investment opportunities.
Accordingto Nguyen Van Toan, Deputy President of the Association of Foreign InvestedEnterprises, the success in fighting the virus, especially with the nationalvaccination campaign, together with several free trade agreementsincluding the Comprehensive and Progressive Trans-Pacific Partnership andthe EU-Vietnam Free Trade Agreement made Vietnam attractive for foreigninvestment.
Toansaid that attracting 40 billion USD in FDI this year was feasible.
Manyexperts believed that implementing Resolution No 128/NQ-CP about safeadaptation to the COVID-19 pandemic would promote the recovery of businessesand the economy, so foreign investors would be confident in investing in Vietnam.
TheFDI inflow was expected to soar rapidly when economic activities werereopened in the coming months.
NguyenAnh Duong from the Vietnam Chamber of Commerce and Industry said that thepost-pandemic economic recovery prospects were bringing significantopportunities for Vietnam to attract FDI.
However,it is essential to consolidate the confidence of the foreign investors inthe administrative management and the enforcement of the internationalintegration commitments, including tackling bottlenecks in labour,administrative procedures and regulation inconsistencies, Duong said.
MatthewPowell, Director of Savills Hanoi, said that several reputable investorschoosing Vietnam as a strategic destination were important in promotingFDI growth.
Currently,enterprises were trying to expand and diversify markets so as not to depend ona single market, he said, adding Vietnam was emerging as anattractive investment destination, given its political stability. However,there were limitations, such as administrative procedures, that neededto be improved to attract investors.
Ministerof Planning and Investment Nguyen Chi Dung said that FDI continued to be animportant capital flow for Vietnam’s economic growth and internationalintegration.
Hesaid that the competition among countries in attracting FDI was growingincreasingly harsh as countries focused on attracting external resources torecover the economy in the context of limited capital supply.
Thefocus would be placed on reviewing foreign investment policies to ensureappropriateness with the global economic development and changes in thestrategies to attract FDI of countries worldwide, he said. Creating a healthybusiness environment would also be an important factor.
Hesaid speeding up the necessary process to bring social and economic activitiesback to normal and eliminate the disruptions in the supply chain of goods andlabour would also help strengthen investor confidence.
Headded that the Government needed to develop regulations and standards as a newfilter to select capable foreign investors with advanced, environmentallyfriendly technologies for sustainable development.
Inaddition, Vietnam must focus on developing human resources to meet the demandof foreign investors in the context of Industry 4.0.
Vietnamattracted 31.15 billion USD in FDI in 2021, up 9.2 percent over the same periodlast year./.
VNA
