Unblocking FDI capital flows

Foreign direct investment (FDI) is considered one of the important driving forces for Vietnam to achieve its high growth target in 2025 and the following period. Many policies are being focused on by ministries, sectors and localities to promote the attraction of this investment capital in the new era.

Workers of Long Son Petrochemical Company Limited (Vung Tau City) check machinery at the Long Son Petrochemical Complex project, a project with FDI investment capital of more than 5.1 billion USD. Photo: HA AN

Attractive investment destination

The latest report from the Foreign Investment Agency ( Ministry of Finance ) said that the total registered foreign investment (FDI) in Vietnam as of March 31, 2025 reached 10.98 billion USD, recording an impressive growth of 34.7% over the same period last year. Foreign direct investment realized in Vietnam in the first 3 months of 2025 is estimated at 4.96 billion USD, up 7.2% over the same period last year.

These data show that foreign investors’ confidence in Vietnam’s business environment remains strong. At the conference on Foreign Investment and Investment Funds in Vietnam’s New Development Era, organized by the Ministry of Finance in Ho Chi Minh City on March 28, many foreign associations and enterprises also shared this message.

According to Mr. Jeong Jihoon, Vice President of the Korean Chamber of Commerce in Vietnam (KOCHAM), in the context of slowing investment flows into many countries around the world , Vietnam still maintains an impressive level of FDI attraction. Korean enterprises consider Vietnam an attractive investment destination with many development advantages, because Vietnam is actively implementing large-scale infrastructure projects such as high-speed railways, urban railways, nuclear power plants and gas-fired power plants.

In addition, the Vietnamese Government has promoted policies to support investment in research and development (R&D), with strong incentives for the information technology and high-tech industries. In particular, thanks to its favorable geographical location, Vietnam has a developed logistics and transportation system; while maintaining diplomatic stability, helping to reduce barriers in import and export activities.

“With these advantages, businesses around the world, especially many Korean businesses, highly appreciate the potential for FDI investment in Vietnam and consider this one of the top priorities when considering expanding investment abroad,” said Mr. Jeong Jihoon.

Mr. Yee Chung Seck, Vice President of the Singapore Business Association in Ho Chi Minh City, also said that Vietnam is a rising star in the global economy and its growth trajectory continues to attract the attention of investors around the world. Vietnam has been proactive in attracting FDI. Efforts to simplify administrative procedures, reduce tariffs and tax incentives have made it easier for foreign businesses to establish and operate in Vietnam. In particular, Vietnam's participation in various free trade agreements (FTAs), such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam - EU Free Trade Agreement (EVFTA) ... helps businesses increase their market access.

From a business perspective, Mr. Marc Woo, General Director of Google Vietnam, said that Vietnam is an important partner of Google, with many investments in supporting start-ups and developing artificial intelligence (AI). Google's recent opening of an office in Ho Chi Minh City also demonstrates the group's long-term commitment to the Vietnamese market.

Remove bottlenecks

Despite many positive results, FDI attraction activities still face some obstacles and difficulties. In reality, FDI enterprises still face many difficulties due to administrative procedures that are not really smooth, and the implementation of tax policies is inconsistent and unpredictable.

Vietnam has a great advantage in terms of a young and dynamic workforce, but there are still skills gaps that need to be addressed to meet the needs of businesses. Many FDI enterprises believe that to attract and retain investors, Vietnam needs high-quality human resources and a modern, synchronous infrastructure system.

According to Mr. Nitin Kapoor, Vice President of the Vietnam Business Forum (VBF) Alliance, attracting sustainable and high-quality foreign investment is the key to Vietnam's long-term development. To increase investor confidence, it is important that policies are consistent, clear and highly predictable. This is especially necessary for sectors that require long-term investment such as high technology, renewable energy and infrastructure.

MR. DUC

Source: https://baobariavungtau.com.vn/kinh-te/202504/khoi-thong-dong-von-fdi-1039051/