Illustrative image (Source: VNA)Hanoi (VNA) - Foreign investors are speeding up the restructuring andreallocation of their production networks globally, with Vietnam considered a brightcandidate for investment given its location within the world’s most dynamically-developingregion.
The country’sprestige and position have improved in recent times thanks to its achievementsin fighting the COVID-19 pandemic.
“This is a chancefor the world to know about Vietnam as a safe investment destination that is keento receive new investment flows,” said Minister of Planning and InvestmentNguyen Chi Dung.
According to theministry’s Foreign Investment Agency (FIA), FDI in the first four months of2020 to Vietnam stood at 12.33 billion USD, equal to 84.5 percent of the figure in the sameperiod last year.
Though newly-registeredcapital and additional capital to existing projects increased, capitalcontributions and shares purchased by foreign investors fell remarkably,resulting in a decline in total capital.
FIA Director DoNhat Hoang said the result is acceptable given the significant falls ininvestment activity seen around the world.
Minister Dungstressed that foreign investment is the main factor behind Vietnam being listedamong the world’s 30 leading exporters.
DuringJanuary-April, the foreign-invested sector’s export turnover reached 56.49billion USD, up 1.5 percent against the same period last year and accountingfor 70.2 percent of the total. Its import value hit 46.32 billion USD, up 2.9 percentyear-on-year and making up 57.6 percent of the total.
Hoang said Vietnampossesses huge potential in foreign investment attraction as investment safety willbe a top priority of investors for the foreseeable future.
Vice President ofthe Korean Business Association in Vietnam Hong Sun said that success in fightingCOVID-19 and stability in its business and investment environments havepositioned Vietnam as a safe destination for investment projects.
The country’spotential has yet to be tapped fully, offering many cooperation opportunitiesfor foreign businesses, he added.
Minister Dungaffirmed that the COVID-19 pandemic has created new perceptions, new consumertrends, new business models, and new value chains.
This really is anopportunity, he went on, for businesses to look back on their capacity,resistance, and adaptation in regard to market changes and restructureproduction and change strategies accordingly.
New free tradeagreements such as the Comprehensive and Progressive Agreement forTrans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement(EVFTA) taking effect will also help Vietnamese enterprises participate in globalvalue chains and increase their capacity and competitiveness, he added.
Economists,meanwhile, have advised Vietnam continue improving its business and investmentenvironment, creating the conditions necessary for enterprises to overcome the difficultiescaused by COVID-19 and intensifying investment promotion through overseasdiplomatic offices./.
VNA
