Foreign investors’ confidence in Vietnam remains strong

Vietnam has seen a robust increase in the inflow of the foreign investment despite global geopolitical uncertainty, affirming foreign firms’ sentiments in the Southeast Asian market, according to insiders.

The Ministry of Industry and Trade stated in an announcement that the investors’ confidence in the Vietnamese Government’s policy as well as the nation’s economic outlook has been consolidated. Meanwhile, global corporations stressed that Vietnam has an incredible opportunity to become an indispensable link in the global supply chain.

Tech giants from the Republic of Korea described Vietnam as their global key production base, while meeting with Prime Minister Pham Minh Chinh.

Besides, many billion-USD projects have been effectively implemented in Vietnam, including those of Samsung, LG, Foxconn, Goertek, Amkor, and HanaMicron.

During January-June, nearly 15.2 billion USD in foreign investment was funneled into Vietnam, up 13.1% year-on-year. The country is forecast to lure some 39-40 billion USD in foreign capital this year, equivalent to the figure of 2023.

Even during the tough time of COVID-19, the country was among the top 20 countries attracting the most foreign direct investment in the world as it garnered 20-22 billion USD at the time.

In recent years, various projects in the domains of semiconductor, energy, and production of parts, electronic products, and goods with high added value have landed and expanded in the country. Furthermore, Vietnam has great chances to attract investments to pioneering industries like AI and hydrogen.

Experts attributed Vietnam’s increasing attractiveness to foreign investors to the country’s important role in the multinational producers’ strategies to diversify their supply chains, as well as its sound economic recovery and stable macroeconomy.

The Government is striving to better the investment and business climate to create favourable conditions and support the investors in the win-win spirit, and for the benefits of the nation, people, and foreign enterprises.

Amidst stiff competition in the foreign investment attraction, Vietnam should work to remove bottlenecks, from improving its human resources to preparing infrastructure, land and energy, and renewing and simplifying investment procedures.

They also underlined the necessity to promote technology transfer and make Vietnamese firms deeply involved in the global supply chain./.