(VOVWORLD) - In 2022, despite the COVID-19 pandemic, conflicts elsewhere in the world, and global inflation, investors’ confidence in Vietnam’s economy and business environment continued to grow. This has been demonstrated by the 23% increase of the newly registered capital in Vietnam and 20 billion USD worth of disbursement, up 15% from last year.
 Vietnam’s FDI attraction aligns with economic recovery (Photo: VNA) |
Foreign Direct Investment in Vietnam bounced back thanks to attractive investment policies and the early reopening post-COVID.
FDI businesses are confident in Vietnam’s recovery
Since March 2022, foreign investors have seen very positive signals about Vietnam’s economic recovery in the post-COVID period. European and American long-term investors in Vietnam are looking for more long-term, safe investment destinations. Vietnam’s trade position, the free trade agreements it has signed, and its connection with other countries are its competitive advantage.
According to the Ministry of Planning and Investment, the processing and manufacturing industry accounts for the majority of the investment which has mainly been focused on high-quality projects aiming for sustainable development from large corporations such as Apple, Lego, and Samsung. High quality, large-scale projects are gradually replacing small ones.
Do Nhat Hoang, Director of the Foreign Investment Agency, the Ministry of Planning and Investment, said: "Among the investment projects, those on processing and electronics manufacturing industries are growing, accounting for nearly 60% of the total. This year, we attracted many investment projects in this field and in the ecosystem of semiconductor manufacturing."
Alain Cany, Chairman of the European Chamber of Commerce in Vietnam, expressed his admiration for the leadership shown by the Vietnamese government at the COP 26 with commitments to become carbon neutral by 2020 and to eliminate coal power usage.
He said Vietnam is creating great investment opportunities for European businesses and expressed his delight at Vietnam's prospects in the short and medium terms saying he believed that Vietnam will have a better position in the next 2 and 3 years while the European business community praising Vietnam's investment environment.
By November, total implemented FDI capital in Vietnam increased 15% while registered capital rose 23% from last year. The figures reflect foreign investors’ confidence in Vietnam’s investment environment.
Niels Christiansen, CEO of LEGO Group, said Vietnam's strong recovery post-pandemic strengthen foreign investors' confidence in long-term business in the country. He urged Vietnam to improve regulations and regulation enforcement.
Vietnam’s investment environment improves
Vietnam’s economy is forecast to face more difficulties amid unprecedented developments around the world but in the long term, the country remains an attractive investment destination for processing and manufacturing industries, according to foreign organizations and businesses. Virgina B. Foote, Vice Chairwoman of the American Chamber of Commerce in Vietnam said: "Our hope is that through the Vietnam Business Forum with domestic and foreign businesses working together, we have established a constructive dialogue with the government. We support Vietnam's economic growth and its role in the increasingly complicated global supply chains."
Vietnam’s prompt decisions and policies have consolidated FDI businesses’ confidence in Vietnam. Phi Huong Nga, Deputy Director of the Industry and Construction Statistics Department of the General Statistics Office, said: "Foreign investment attraction is the bright spot of the Vietnamese economic landscape. Vietnam boasts advantages of capital, stable politics and macro-economy, a young labor force, and effective control of the COVID-19 pandemic. Vietnam has constantly improved its businesses environment. These factors will make Vietnam a magnet of foreign investment."