Maintain attractiveness to foreign investors

However, this is a new and complicated issue and there is not enough concrete evidence to show that foreign direct investment (FDI) attraction results will decrease in Vietnam...

Automobile assembly at the Ford Vietnam factory (a joint venture between Ford Motor Company USA and Song Cong Diesel Company). Photo: Duc Thanh

New developments, old advantages

In pure theory, once goods are subject to high tariffs, they will become less competitive, causing disadvantages for manufacturers. Thus, international investors may have to consider reducing investment, even withdrawing capital or not continuing to invest in areas subject to high tariffs. This poses a disadvantageous and sudden situation for a country that regularly exports large volumes to the US market like Vietnam.

On the contrary, there is also an opinion that the “common denominator” of the decline in FDI investment will not necessarily be strong, nor is there a clear basis to assume that this capital flow will decrease in the level of “flow” into Vietnam. First of all, Vietnam has diversified its export markets, established a foothold in a number of important markets with strong purchasing power. It is also the good promotion of 17 free trade agreements (FTAs) such as EVFTA, CPTPP, RCEP..., which have helped Vietnamese enterprises benefit from tariffs and positive market expansion potential - advantages for investors.

Along with that, the Government continues to implement flexible fiscal and monetary policies, promote public investment and improve the business environment, creating momentum for economic growth. Once maintaining a good business environment and growth rate, Vietnam will always be an attractive market for investors to consider and choose.

In fact, in the first quarter of 2025, the country attracted 10.98 billion USD of FDI capital, an increase of 34.7% over the same period in 2024, showing that the trend of interest and increased investment in Vietnam by foreign investors continues to grow. According to Head of the Department of Industry and Construction Statistics (General Statistics Office, Ministry of Finance ) Phi Thi Huong Nga, Vietnam's attractiveness and ability to attract FDI capital is still maintained thanks to its significant potential and advantages. "As a large market with more than 100 million consumers, a stable macroeconomic situation and competitive costs, our country also has a favorable geographical location, easily connecting with many other large markets," said Ms. Phi Thi Huong Nga.

Synchronous solutions

However, the US imposition of reciprocal tariffs needs to be carefully analyzed to find solutions to resolve and respond. Experts say that Vietnam needs to focus on implementing a number of solutions to proactively improve the situation and minimize risks in bilateral investment and trade relations with the US. That is, to strengthen bilateral dialogue to clarify the factors and trade benefits between the two countries; affirm that Vietnam is a fair and trustworthy trade partner. Continue to be proactive and transparent in providing information on the origin of goods, actively and using many different channels and measures to reasonably increase the import of US goods, gradually creating a trade balance between the two countries.

Next, Vietnamese authorities need to actively research options, be proactive in negotiations, and reconcile common interests with the United States to reach an agreement on tax rates at the most reasonable and beneficial level.

Improving and enhancing the quality of the investment environment is still a fundamental and practical solution that needs to be persistently implemented in a substantive and effective manner to maintain and promote FDI activities. In particular, recently, the Prime Minister issued Official Dispatch No. 22/CD-TTg on a number of key tasks and solutions to reduce administrative procedures, improve the business environment, promote socio-economic development, requiring ministries and localities to focus on thoroughly reviewing, reducing and simplifying administrative procedures related to investment activities, production and business and people's lives, ensuring a reduction of at least 30% of administrative procedure processing time; at least 30% of business costs; abolishing 30% of unnecessary business conditions; implementing procedures related to enterprises in the electronic environment, ensuring smoothness, continuity and efficiency.

In addition, it is necessary to boldly apply special investment procedures, likened to a “green channel”, strongly shifting from pre-inspection to post-inspection to shorten the time for implementing investment procedures, creating maximum favorable conditions to increase investment attractiveness for the high-tech sector. That is a solution to self-improve competitiveness, inviting strategic investors to participate in projects in the semiconductor and chip materials industry; manufacturing components, integrated circuits; research and development centers, innovation...

At the same time, the upgrading and expansion of many infrastructure projects, especially roads, seaports, airports and industrial park systems in a synchronous and modern direction are proving effective. The preparation for being ready to meet the project implementation needs of investors, in which the highlight is improving logistics capacity, is a plus point, creating solid support for investors.

Notably, Vietnam has focused on taking advantage of opportunities to attract FDI from the wave of international investment relocation, combined with the orientation of encouraging and positioning itself as a high-tech destination over the past time. It can be said that this is a trend that has formed when successfully receiving many big names such as Samsung, Amkor, Foxconn... It is no coincidence that international investors believe that Vietnam is becoming an increasingly important link in the global supply chain.

Source: https://hanoimoi.vn/duy-tri-suc-hap-dan-voi-cac-nha-dau-tu-nuoc-ngoai-701137.html