(VOVWORLD) - Vietnam can expect to lure more Foreign Direct Investment this year as big and small foreign investors shift their investments to Vietnam. A number of FDI projects under trade agreements Vietnam has signed will be implemented in the country in the near future and the Vietnamese government has put in place incentives to attract even more investment.
 South Korea's LG group set up R&D center in Da Nang in December, 2020 (Photo: sggp.org.vn) |
As of December 20, foreign investment in Vietnam for 2020 totaled 28.5 billion USD, down 25% from 2019. But foreign investors continue to show interest in Vietnam.
Prospects for attracting more FDI in 2021
According to the Ministry of Planning and Investment, 300 foreign companies are planning to start or expand investment in Vietnam while 60 groups and businesses have enjoyed success in their investment projects in Vietnam.
During a global investment shift, Vietnam is proving to be an attractive destination thanks to its political and macro-economic stability, favorable geographical location and environment, and plentiful human resources. Infrastructure has been upgraded at industrial, processing, and economic zones nationwide. The Prime Minister has authorized 19 projects within coastal economic zones covering more than 870,000 ha.
GDP growth in 2020 despite the COVID-19 pandemic has made Vietnam a strong candidate to profit from the value chain shifts in Asia.
At meetings on FDI promotion with partners from Japan, Singapore, and France hosted recently by the Ministry of Planning and Investment, many big investors have expressed interests in Vietnam. Apple, Foxcom, and Luxshare have increased their orders from suppliers in Vietnam and expanded their investment in the country to billions of dollars.
 Apple's suppliers in Vietnam expand operation (Photo: vietnamnet.vn) |
Specific policies
Under the 2020 revised Law on Investment which took effect early this year incentives will increase 50% and many new sectors will be added to the preferential investment list.
Vu Hong Thanh Head of the National Assembly Committee for Economic Affairs said: "The list of investment sectors will be adjusted to meet the current context and investment policies will be revised to improve management."
Vietnam is poised to benefit from the ongoing foreign investment shift to achieve its socio-economic development goals for 2021 and beyond.