Foreign investment is regaining its feet as the pandemic is brought under control and the “new normal” comes into view.
FDI has continued to pour into Vietnam despite the woes caused by the Covid-19 pandemic, confirming the country’s ongoing appeal among foreign investors.
In the first ten months of the year, newly-registered FDI rose 15.8 per cent year-on-year, according to the Foreign Investment Agency at the Ministry of Planning and Investment (MoPI). Of this, $23.74 billion went to 18 sectors, with processing and manufacturing receiving $12.74 billion, or 53.7 per cent of the total. According to Mr. Nguyen Bich Lam, former General Director of the General Statistics Office (GSO), Vietnam remains a popular destination for FDI, with appropriate policies introduced by the government and an ability to fight Covid-19 that built trust among foreign investors.
Existing projects of the Sangshin Electronics Co., Ltd from South Korea, the Kurz Group from Germany, and Amkor Technology, Inc. from the US are also about to be implemented in the country. Despite there being fewer large-scale FDI projects compared to before the pandemic, foreign investment is active once more.
According to many international organizations, with the government’s efforts in institutional reform, perfecting the business and investment environment, and upgrading infrastructure, Vietnam holds many advantages in attracting FDI. However, Mr. Lam said the country needs to focus on solutions such as reviewing and adjusting foreign investment policies, specifically identifying a list of industries and fields in need of foreign investment, and strengthening the country’s stable macroeconomic foundation, among others, to turn the advantages into opportunities to attract new FDI.