Continuing to selectively attract foreign capital

World economic growth is slowing down, global FDI may decline Photo: ST

Vietnam is still a bright spot

According to data from the Ministry of Planning and Investment, as of May 20, the total newly registered capital, adjusted and contributed capital to buy shares, buy capital contributions from foreign investors reached over US$11.71 billion, equaling 83.7% compared to the same period in 2021. In which, newly registered capital decreased by 53.4%, adjusted capital and capital contribution to buy shares and purchase contributed capital increased sharply, respectively by 4% and 51.6%.

Foreign investors have invested in 18 industries out of a total of 21 national economic sectors. In which, the processing and manufacturing industry leads the way with a total investment of over US$6.8 billion, accounting for 58.2% of the total registered investment capital. In terms of the number of new projects, wholesale and retail, the processing and manufacturing industry, and professional science and technology activities are the industries that attract the most projects.

It is notable that, foreign investors have invested in 48 provinces and cities across the country in the first five months of 2022. Binh Duong leads the way with a total registered investment capital of over US$2.52 billion, accounting for 21.5% of total registered investment capital and nearly 2.3 times higher than the same period in 2021. Bac Ninh ranked second with a total investment capital of nearly US$1.65 billion, accounting for 14.1% of total capital. Ho Chi Minh City ranked third with a total registered investment capital of over US$1.3 billion, accounting for 11.3% of total capital and a slight decrease of 1.1% over the same period in 2021.

According to Deputy Minister of Planning and Investment Tran Duy Dong, the pandemic has disrupted the supply chain, disrupted goods circulation, delayed the implementation of projects, causing corporations and multinational companies are forced to calculate investment strategies, and countries have to study and change investment attraction policies to suit the new context. In that context, Vietnam is a bright spot on the map for attracting FDI. Investors from Asia, Europe, the United States and ASEAN continue to promote investment in Vietnam.

“The fact that foreign investors continue to consider Vietnam an attractive destination is important because of the very effective solutions of both the Government, businesses and people in flexibly and effectively controlling the Covid-19 pandemic to promote production - business and restore economic development," said Mr. Tran Duy Dong.

Welcoming the wave of investment transformation

Although the opportunity to receive FDI is huge, the competition to attract FDI is becoming more and more fierce, especially in the context of limit  ed capital supply and the heavy impact of the Covid-19 pandemic, which has made countries all over the world. take advantage of attracting external resources to maintain and recover the economy.

“Therefore, in the future, Vietnam needs to focus on implementing measures to develop service industries in depth; increase the productivity of the service sector and the production and business sector, complete and improve the quality of the infrastructure; training high-quality human resources; supplement the policy of supporting industry development; supplementing policies to attract effective and high-quality FDI capital. At the same time, the exponential growth of e-commerce, especially the sudden increase of this modern form of commerce during the pandemic, has spurred huge demand for warehouse real estate. In that context, there should be more policies and mechanisms for the logistics and warehousing industry to become an important component of the industrial real estate industry," Deputy Minister Tran Duy Dong said.

Also according to Deputy Minister Tran Duy Dong, Vietnam has been preparing the necessary conditions to be ready to receive a new wave of investment transformation, becoming an important production base of the world by continuing to improve institutions, and an open business investment environment to selectively attract and prioritize projects using modern and environmentally friendly technologies.