In the first two months of the year, attracting foreign direct investment (FDI) had many bright spots, with total capital reaching 4.29 billion USD, up 38.6% over the same period last year.
At the regular Government meeting in February, Prime Minister Pham Minh Chinh requested to continue creating favorable conditions to attract foreign investors; resolutely handle difficulties, actively support the acceleration of investment projects; and strengthen the promotion and attraction of FDI projects.
At this time last year, this year is different. At the end of February 2023, many people were worried when foreign investment capital in Vietnam decreased by 38% compared to the same period in 2022. However, this year, this amount of capital has regained momentum. As of February 20, the total newly registered capital, adjusted registered capital and capital contribution and share purchase value of foreign investors reached nearly 4.29 billion USD, an increase of 38.6% over the same period in 2023. A notable point is that we have a very high rate of new projects, an increase of more than 55% over the same period. This is the basis for expecting that this new capital will impact our growth in the coming years.
Foreign investors interested in Vietnam
The Korean investor is completing its third factory in Thanh Hoa province with a total investment of 10 million USD. This will be the company's fastest project to be put into operation, helping to double the production of wiring harnesses for new Korean car models by the middle of this year.
"We have chosen clean land early, especially the location with highly synchronized traffic infrastructure from the new highway axis to airports and seaports. Local and provincial authorities have supported to speed up the process of resolving investment and land lease procedures. Thanks to that, we can produce in time for the increasing orders", said Mr. Lee Kwang Ho - General Director of THN Autoparts Vietnam Co., Ltd.
Last February, Central Pattana - a major retail real estate brand in Thailand established a legal entity in Vietnam. The move is considered an investment expansion step after the parent group announced that it would pour an additional nearly 1.5 billion USD into the Vietnamese retail market in the period up to 2027.
Data from the General Statistics Office also shows that in 2023, wholesale and retail is one of the sectors that attracts the most foreign investors in our country. Leading in the number of capital contribution transactions to buy shares, equivalent to nearly 42% of the total number of transactions.
Mr. Matthieu Francois - Partner Director, McKinsey Vietnam commented: "In the Asia region, Vietnam is among the most optimistic retail markets that we observe, despite the difficult context. Vietnamese consumers' income is increasing, especially in areas outside of major cities. There is still a lot of room for growth, we just have to wait longer for the market to bounce back."
Right now, to proactively seek foreign capital flows, the Ministry of Finance and the State Securities Commission are also hosting and organizing an Investment Promotion Conference in Korea.
Mr. Ho Duc Phoc - Minister of Finance said: "The goal is to connect financial flows, businesses and financial investment funds of Korea to invest in Vietnam and create trust in the issue of financial policies and laws of our Vietnam are extremely consistent and transparent".
In the context of many difficulties in the global economy , Vietnam's foreign capital attraction figures are very positive, showing foreign investors' confidence in the stable macroeconomic environment and the Government's support policies.
Foreign direct investment realized in Vietnam in the first two months of 2024 is estimated at 2.8 billion USD, up 9.8% over the same period last year. This is the highest amount of foreign direct investment realized in 2 months in the past 5 years. To continue attracting foreign capital, 3 breakthrough solutions have been pointed out, including human resource development, reforming the business investment environment and especially improving infrastructure.
Improve infrastructure to attract FDI enterprises
Mr. Tran Quoc Phuong - Deputy Minister of Planning and Investment said: "We focus on continuing to complete and accelerate the progress of large-scale infrastructure projects that we have set out, and especially immediately deploying guiding documents to soon implement the Land Law that has just been passed by the National Assembly. This is something that not only the Vietnamese people but also investors and foreign investors are looking forward to and interested in. Because the Land Law has many new points, removing obstacles for promoting investment attraction and developing production and business".
"Thanh Hoa province also continues to maintain policies and solutions to support investors, especially supporting the expansion of industrial land funds, supporting infrastructure, supporting up to the fence of the project, so that enterprises not only expand production and business from the province but also attract enterprises in their production chain", Mr. Le Minh Nghia - Director of the Department of Planning and Investment of Thanh Hoa province informed.
"We need to be more drastic in clearing the land for industrial parks that have been established, and prepare clean land to attract investors. Secondly, we need to speed up the construction of infrastructure for industrial parks such as electricity, water, transportation, etc., creating favorable conditions for investors to come to Vinh Phuc", Mr. Nguyen Van Do - Director of the Department of Planning and Investment of Vinh Phuc province emphasized.
According to a recent survey conducted by Eurocham, the satisfaction level of European investors has increased significantly. However, more than half of the surveyed enterprises want the administrative apparatus to continue to be streamlined. 45% of opinions proposed to strengthen the legal system and legal environment in Vietnam. These are the basic foundations for us to continue to accelerate in the FDI race. Therefore, right from the beginning of the year, the Government issued Resolution 02 on the main tasks and solutions to improve the business environment and enhance national competitiveness. And consider this a priority focus.
Improving the business investment environment - the key to attracting FDI
In the first two months of the year, industrial parks in Hanoi have welcomed a new FDI project, with a relatively large scale, 66 million USD. The notable point is that the time to handle administrative procedures has been significantly reduced.
"There are administrative procedures that were previously regulated to take 13 working days, now shortened to 7 days. Especially in 2023, as well as projects in early 2024, after receiving valid documents from investors, licenses will be granted within 24 hours," informed Mr. Nguyen Hoai Nam - Deputy Head of the Hanoi Industrial and Export Processing Zones Management Board.
As for Bac Giang province, as soon as foreign enterprises and corporations had investment ideas, the Provincial People's Committee established special working groups to support conditions and promptly resolve problems and difficulties.
Mr. Mai Son - Vice Chairman of Bac Giang Provincial People's Committee said: "Establish working groups to attract large corporations. From there, we will attract satellite businesses to create synchronous and complete products in Bac Giang".
Foreign businesses also highly appreciate Vietnam's reforms in recent times.
Mr. Nguyen Hong Huy - Representative of the American Chamber of Commerce in Vietnam (AmCham Vietnam) said
"This is clearly demonstrated through the Government's very specific policies and directions in reforming administrative procedures, cutting unreasonable business conditions, as well as creating conditions for businesses to access and absorb capital sources. Most recently, the Government issued Resolution No. 02 to reform the business environment. This is something that US businesses in Vietnam highly appreciate."
Recently, the Government has submitted and the National Assembly has approved many policies that have a positive impact on growth and investment attraction such as the Land Law and the Bidding Law. Or more simply, the regulations on entry and exit, visa procedures and regulations also have a very positive impact on the psychology of investors when coming to Vietnam.
How to attract and retain large corporations in the world to invest in Vietnam, many people liken it to "lining a nest to welcome eagles". In fact, hunting for "FDI eagles" is not simple. There is competition from macro policies to micro actions, from preferential policies of the Government to implementation in each locality. To welcome high-quality capital flows, Vietnam is building a National Strategy and Human Resource Development Project for the semiconductor industry, with the goal of training 50,000 human resources for the industry by 2030.
According to VTV
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