Vietnam still attracts foreign investors

According to the Ministry of Planning and Investment, in the first 11 months of this year, Vietnam attracted 2,240 new FDI projects with combined registered capital of nearly US$13.03 billion, and allowed 1,075 projects to increase their capital by a total of US$5.07 billion. This means that US$18.1 billion of FDI was registered in the country in the first 11 months, 11.5 percent lower compared with the same period last year. 

Despite a decrease in registered capital, FDI disbursements in the first 11 months reached US$14.3 billion, up 8.3 percent compared with the same period last year. In the opinion of economists, this increase in FDI disbursements showed foreign investors’ trust in the investment environment in Vietnam.

Foreign Investment Agency Director Do Nhat Hoang said that Vietnam has more advantages in FDI attraction than many other countries. These advantages include political stability, stable annual economic growth, and improving infrastructure with 20 airports and 39 seaports. Vietnam has a 93 million population with working-age people accounting for about 60 percent. The Vietnamese government is enhancing the transparency of investment procedures to create a fair investment environment for domestic and foreign investors. Vietnam has become more attractive to foreign investors thanks also to its participation in new-generation free trade agreements.

So far, Vietnam has attracted FDI from 115 countries and territories. Apart from Asian investors, many businesses from European countries have sought opportunities to invest in Vietnam. Vietnam is a dynamic emerging market that offers a gateway to the Asian market, LB Bungaricum General Director Slavi Krasnov Lavlov told Vietnam Economic News’ reporters on the sidelines of a recent Vietnam-Bulgaria Business Forum in Hanoi.

EU Commissioner for Agriculture and Rural Development Phil Hogan led a delegation of 41 leading European businesses to visit Vietnam this November. The visit showed European businesses’ interest in the Vietnamese investment environment and opened opportunities for Vietnam to attract more FDI from Europe.

The Vietnamese government considers FDI an important factor to accelerate the country’s industrialization. It has facilitated Vietnamese businesses’ access to advanced technologies and modern management skills which are crucial for their participation in global supply chains. From the viewpoint of economists, however, the FDI sector in recent times has revealed many problems such as environmental pollution and overuse of labor. To enhance the sector’s contribution to the economy, Vietnam needs to set basic directions for FDI attraction, utilization, and management.

Chu Huynh / ven