Economists optimistic about FDI inflows into Vietnam

Vietnam is still a "golden" destination

In the first quarter of 2025, foreign direct investment (FDI) inflows into Vietnam reached 10.98 billion USD, up 34.7% over the same period last year. Notably, FDI inflows into Vietnam in the first quarter of 2025 increased steadily in both registered FDI capital, contributed capital, share purchases by foreign investors, and disbursed capital.

Notably, the additional registered capital of licensed projects reached 5.16 billion USD, 5 times higher than the same period in 2023; capital contribution and share purchase by foreign investors reached 1.49 billion USD, up 83.7% over the same period last year.

Disbursed FDI capital in Vietnam in the first quarter of 2025 reached 4.96 billion USD, up 7.2% over the same period last year. Illustrative photo

Disbursed FDI capital in Vietnam in the first quarter of 2025 reached 4.96 billion USD, up 7.2% over the same period last year. According to Ms. Nguyen Thi Huong - Director of the General Statistics Office ( Ministry of Finance ): This is the highest amount of foreign direct investment capital realized in the first three months of the year in the past 5 years. Of which, the processing and manufacturing industry reached 4.05 billion USD, accounting for 81.7% of the total realized foreign direct investment capital.

Forecasting FDI capital flows into Vietnam in the coming months, Prof. Dr. Nguyen Mai - Chairman of the Association of Foreign Investment Enterprises - is still optimistic about FDI capital flows into Vietnam in 2025. This optimism is not without basis, because looking at the results of FDI attraction in the first quarter of 2025, it shows that all figures are growing very quickly. In particular, disbursed FDI capital and additional FDI capital of old projects. That shows that foreign investors have great confidence in Vietnam's investment environment.

According to Professor Nguyen Mai, there are currently about 13-14 FDI projects in the fields of artificial intelligence (AI), semiconductors, and rare earth mining with a total investment capital of up to 10 billion USD planning to invest in Vietnam.

"These are very important projects and are in line with the direction of the Vietnamese Government in recent times. I am very optimistic about the opportunity to attract FDI to Vietnam in the coming time" - Prof. Dr. Nguyen Mai affirmed.

In particular, according to Prof. Dr. Nguyen Mai, Vietnam is benefiting greatly from the policy of shifting the supply chain of foreign investment areas. Specifically, out of nearly 200 projects of Japanese enterprises moving to the ASEAN region in 2024, up to 90 projects will be shifted to Vietnam.

Also optimistic about FDI capital flows into Vietnam in 2025, Mr. Nguyen Ba Hung - Economist of the Asian Development Bank (ADB) - said: In the immediate future, Vietnam is still an investment destination that foreign investors are targeting, thanks to its advantages in terms of mechanisms, policies, quality of human resources and deep international economic integration.

Vietnam is still an investment destination that foreign investors are targeting, thanks to its advantages in terms of mechanisms, policies, quality of human resources and deep international economic integration. Illustrative photo

Seize opportunities, stand firm in the face of new challenges

Although very optimistic about Vietnam's investment environment, Prof. Dr. Nguyen Mai believes that Vietnam should still be cautious about new developments in the global economy and trade. At the same time, it is necessary to carefully monitor fluctuations in the world economy and trade to make timely adjustments and responses to new situations and contexts.

Also predicting Vietnam's FDI attraction opportunities in the coming period, Mr. Nguyen Ba Hung said that it is too early to confirm how FDI capital flows into Vietnam will be affected in the coming time, especially in the context of many changes in tax policies.

Mr. Nguyen Ba Hung also said that foreign investors tend to invest long-term. Therefore, to influence the investment decisions of enterprises, it depends on many factors such as investment attraction policies, infrastructure, business performance and labor resources, etc.

Accordingly, to "retain" foreign investors, Vietnam still needs to continue to improve transport infrastructure, information technology infrastructure, electricity infrastructure; simplify administrative procedures in attracting and licensing investment; improve the quality of human resources to increase the competitiveness of the business sector... If these requirements are met, Vietnam will not only attract sustainable FDI capital flows but also increase the competitiveness of the economy.

Agreeing with this view, Prof. Dr. Nguyen Mai said that in recent years, Vietnam has been very active in improving the investment and business environment and improving the quality of human resources. However, compared to other countries in the region, Vietnam's FDI attraction policies are still limited. For example, in Indonesia, FDI projects of 70 million USD or more and creating jobs for 300 workers are approved very quickly within 1-2 days. This creates great convenience for businesses.

Regarding human resource training, Vietnam is starting to target training 50,000 IT engineers by 2030, but other countries have already done so. Therefore, to increase FDI attractiveness, Prof. Dr. Nguyen Mai believes that Vietnam needs to be faster in implementing policies to facilitate foreign investors.

In the first quarter of 2025, Vietnam recorded 401 projects licensed in previous years registering to adjust investment capital, with the total additional FDI capital reaching 5.16 billion USD, 5 times higher than the same period last year.

Nguyen Hoa

Source: https://congthuong.vn/chuyen-gia-kinh-te-lac-quan-ve-dong-von-fdi-vao-viet-nam-384118.html