3 factors that help Vietnam continue to be a destination for FDI.

Amidst the restructuring of global supply chains, foreign direct investment (FDI) into Vietnam continues to grow strongly in terms of both new and adjusted capital, indicating that foreign investors continue to view Vietnam as an important investment destination in the medium and long term.

Many foreign investment projects in Vietnam continue to expand in scale. (Illustrative image.)

Assessment of the attraction situation FDI capital In 2024, the Ministry of Planning and Investment stated that, according to assessments by many domestic and foreign financial institutions, Vietnam's prospects for attracting FDI will remain positive thanks to three core factors.

These include: the important and increasingly strengthened role of multinational manufacturers in diversifying their supply chains; economic growth A more positive recovery; macroeconomic stability.

Vietnam has promising investment prospects in many cutting-edge industries. The technology sector is undergoing significant innovation and digitalization; the renewable energy sector is attracting attention with a growing focus on clean energy sources such as solar and wind power to enhance the sustainability of Vietnam's electricity supply.

Investor confidence in Vietnam continues to strengthen, with existing investors trusting in the government 's policies and the future development of the Vietnamese economy. Many investors also view Vietnam as an attractive destination with significant potential and ample room for growth in the medium and long term.

Furthermore, Vietnam's position in the electrical and electronics supply chain is increasingly strengthened, leading to a trend of more electronics manufacturers coming to Vietnam.

The quality of investment projects has also improved significantly, with many large projects in the semiconductor, energy (battery production, photovoltaic cells, silicon rods), component manufacturing, electronic products, and high value-added products sectors receiving new investments and capital expansion in the first six months of the year.

Foreign direct investment (FDI) is concentrated in provinces and cities with many advantages in attracting foreign investment such as Bac Ninh, Ba Ria-Vung Tau, Quang Ninh, Hanoi, Hai Phong, Ho Chi Minh City, Dong Nai, etc., and is mainly invested from Vietnam's traditional partners in Asia such as Singapore, Japan, Hong Kong (China), South Korea, and China.

As of June 20, 2024, the total registered capital for new registrations, adjustments, and capital contributions through share purchases of the company... foreign investment It reached nearly $15.2 billion, an increase of 13.1% compared to the same period last year. The disbursed capital of foreign investment projects is estimated at approximately $10.84 billion, an increase of 8.2%.

The increase in both registered and disbursed FDI will further boost domestic activities. Notably, both new investment capital and adjusted capital of existing projects increased sharply compared to the same period last year, with increases of 46.9% and 35% respectively.

This result shows that foreign investors continue to view Vietnam as an important investment destination in the medium and long term, against the backdrop of ongoing restructuring of global supply chains.

However, Vietnam must actively address several current bottlenecks, specifically: urgently preparing a skilled workforce, especially in the semiconductor electronics sector; overcoming localized power shortages in areas with a high concentration of electronics industrial projects; and reviewing procedures to simplify and shorten the processing time for various licenses.

"The Government and the Prime Minister have issued timely directives so that in the coming period, all levels and sectors will focus on decisive solutions to address these bottlenecks. Accordingly, there will be positive impacts on FDI attraction results in the last six months of 2024, continuing to maintain positive growth momentum, reaching a level equivalent to or higher than that of 2023," the Ministry of Planning and Investment informed.

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