Vietnam continues to demonstrate its attractive investment appeal
In recent years, alongside the stable development of the economy, Vietnam has increasingly attracted the attention of foreign investors, consistently leading the Southeast Asian region in attracting foreign direct investment (FDI).
Despite the challenges posed by the COVID-19 pandemic, Vietnam has maintained stability and continued to attract the interest of foreign investors. This demonstrates the attractiveness and development potential of the Vietnamese investment market.
Compared to other Southeast Asian countries, foreign investors choose Vietnam due to advantages stemming from its stable political system, abundant labor force, rich natural resources, rapidly growing consumer market, and continuously improving policy environment, creating a large market potential for investors. In recent years, Vietnam’s semiconductor and high-tech industries have attracted significant attention from the world.
Up to January 20, 2024, the total foreign investment capital newly registered, adjusted, and contributed to buy shares or contribute capital by foreign investors in Vietnam reached over $2.36 billion, an increase of 40.2% compared to the same period in 2023. Vietnam has signed free trade agreements (FTAs) with over 60 countries worldwide, has partner relationships with many G20 member countries, and it is forecasted that Vietnam’s foreign investment attraction will continue to maintain good growth momentum in the current year and the following periods.
According to the Business Confidence Index (BCI) report of the European Chamber of Commerce in Vietnam (Eurocham) released on January 8, confidence of European businesses operating in Vietnam increased in the fourth quarter of 2023. The BCI reached 46.3 points, up 2.8% compared to the third quarter of 2023. The level of concern among businesses also decreased from 9% to 5%, with about 29% of businesses self-assessing their prospects as “excellent” and good.
Efforts to improve Vietnam’s investment environment have yielded promising results. In 2023, the highest FDI realization was recorded in the past five years. The FDI attraction situation strengthened at the beginning of 2024. In the first month of the new year 2024, total foreign investment capital reached over $2.36 billion, an increase of 40.2% compared to the same period last year. This is a very positive sign, providing a basis for maintaining confidence in a year of strong FDI inflows into Vietnam.
The government has implemented many measures to improve the investment and business environment, such as stabilizing macroeconomic conditions, implementing three strategic breakthroughs, improving institutions, infrastructure, and human resources. Particularly for infrastructure, the government has taken drastic measures to accelerate the disbursement of public investment, focusing on implementing strategic infrastructure, interprovincial routes, connecting ports, and airports.
The attractiveness of the investment environment also comes from industrial zones and economic zones in localities. The number of industrial zones and economic zones nationwide is increasing. Up to now, there are 416 industrial zones in 61/63 provinces and cities. Industrial zones and economic zones nationwide have attracted more than 11,200 FDI projects with a total registered capital of over $231 billion. Enterprises in industrial zones and economic zones contribute about 50% of the country’s total export turnover, while significantly contributing to state budget revenue and creating employment for over 4.15 million direct workers.
With the trust of international businesses in the investment environment in Vietnam and the efforts to improve the business environment by the government, ministries, departments, and localities, 2024 is expected to be a breakthrough year for FDI growth in Vietnam.
