Vietnam – a potential destination for FDI investors and foreign tourists

Positive signs of FDI 

The processing and manufacturing industries continue to take the lead in the FDI list. It is followed by real estate, finance and banking, science, and technology. 

In Hai Phong, a number of investors have increased their capital after a period of operation, making the city Vietnam’s second leading location in FDI, with a total registered investment capital of more than 2 billion USD, up 96.5% over the same period last year. 

Mr. Chen Chi Liang, General Director of Pegatron Vietnam Co., Ltd., said that after surveying many places, the enterprise decided to choose Hai Phong to build its 14th factory globally.

"We have received a lot of support from the Hai Phong Economic Zone Management Authority. Within a short time, we built the factory and put it into operation. We are planning to continue to expand our investment in Hai Phong. Some European and American customers have discussed cooperation with us. They are very interested in the electronic supply chain and want to cooperate for mutual development,' said Chen.

Quang Ninh province continues to be the destination of new generation FDI projects. By the end of June, Quang Ninh granted investment certificates to two new projects of Foxconn Group with a total investment of more than 246 million USD. As a result, Foxconn currently has 3 active projects in the province, with a total investment capital of 383 million USD. The number of large investors returning to Quang Ninh has increased recently, and the scale of projects is also expanding.

Mr. Komoto Tomoshi, General Director of Castem Vietnam Co., Ltd., which has built a factory for manufacturing precision mechanical parts in Quang Ninh, said: "We choose Quang Ninh because it has many advantages. It is close to the airport and port, which is very convenient for production and export. Moreover, we have learned that Vietnamese workers are very hard working and focused. In particular, the open investment environment in Quang Ninh is also a great incentive for us to plan our long-term investment."

South Korea is currently the leading investment partner in Vietnam with a registered capital of more than 80 billion USD. South Korea’s investment in Vietnam has continued to grow, even during the difficult period of the COVID-19 pandemic. More than 9,200 South Korean FDI enterprises are operating in the fields of industry-construction, agriculture, tourism, services, and export in Vietnam.

Mr. Hong Sun, Vice President of the Korean Chamber of Commerce in Vietnam, said: "Before COVID-19, Vietnam was also one of the countries with a very attractive investment environment, not only for South Korea but also for other countries around the world. Currently, investors in general and Korean investors in particular are continuing to invest and expand their operation in Vietnam. We hope that Vietnam and South Korea will continue successful cooperation."

Vietnam is also emerging as a potential destination for direct investment and venture capital flows, especially in start-ups and innovation. Total capital investment committed for Vietnamese start-ups from 2023 to 2025 has mounted to 1.5 billion USD.

A safe, friendly destination 

In the field of tourism, last month was the first month that Vietnam has welcomed more than 1 million foreign arrivals since reopening in March last year, bringing the total number of international visitors to the country in the first 7 months of this year to nearly 6.6 million, up 7 times over the same period last year.

The result has been attributed to the Vietnamese government’s efforts to promote tourism and its policy of linking tourism development with creative and cultural industries. For example, two shows in Hanoi by South Korean group Black Pink have created favorable conditions for Vietnam to develop cultural industry tourism, showcasing Vietnam’s ability to organize major events. 

Furthermore, reality shows Let's Feast Vietnam”, “The Amazing Journey”, and "Made in Vietnam" have promoted Vietnamese culture, tourism and cuisine throughout Asia on social platforms. Many foreigners who have lived in Vietnam for years, say Vietnam is a small country but possesses many things that not all other countries have, especially cultural diversity. They believe that by tapping its advantages and potential and effectively implementing the Government's strategy to promote tourism development to 2030, with a vision to 2050, Vietnam will certainly become an increasingly popular destination for international tourists and investors.

Palestinian Ambassador to Vietnam Saadi Salami said: "In the past, everyone knew about Vietnam through the war, but now people also want to learn about Vietnam through its socio-economic development and wonderful tourist attractions. Therefore, Vietnam has gradually become a very important choice for many foreigners."

Amid fluctuations around the world, some of which are significantly affecting Vietnam, there are positive signals for the country’s economy since the beginning of the year. Those specific figures on foreign investment and arrivals indicate an important rebound for Vietnam to accelerate and make breakthroughs for stronger development in the future.