(PLVN) - Recently, survey results from business associations in many countries show that Vietnam is being chosen as one of the top destinations for investment in the coming time.
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| Many foreign enterprises in Vietnam will expand production in the coming time. (Illustration photo: VNA) |
(PLVN) - Recently, survey results from business associations in many countries show that Vietnam is being chosen as one of the top destinations for investment in the coming time.
Is an attractive destination in the region
Reports on the business environment index published quarterly by the European Chamber of Commerce in Vietnam (Eurocham) show that Vietnam is a country that European businesses “target” to introduce to foreign investors when they intend to expand production. Even businesses operating in Vietnam choose to continue expanding production (which means pouring more capital into Vietnam).
The Business Climate Index Report for the third quarter of 2024 shows that nearly 80% of businesses said they had 1 to 3 offices or production facilities in Vietnam. Of those businesses that shared their expansion plans, more than half intend to expand their operations, with many planning to develop new production facilities in the North or open additional offices in key cities such as Hanoi , Ho Chi Minh City, Da Nang and Can Tho.
A recent survey report by the Japan External Trade Organization (JETRO) also shows that Vietnam continues to be one of the most attractive destinations in ASEAN for Japanese businesses, despite post-pandemic economic challenges. Accordingly, while the average rate of Japanese businesses wanting to expand operations in Southeast Asia is 46.3%, the rate of choosing to continue expanding business in Vietnam is up to 56.1% within the next 1-2 years. Notably, compared to 2023, this result decreased by 0.6 percentage points but is the highest in the region and surpassed Laos - the leading country last year.
Economist Dinh Trong Thinh assessed that Vietnam's foreign direct investment (FDI) attraction continues to increase while in the world these rates are decreasing. This proves that Vietnam's attraction is quite large, especially considering that this attraction comes while cheap labor is no longer a major advantage of Vietnam. In addition, another issue that must be mentioned is that the FDI disbursement rate has also increased significantly.
According to a recent report by HSBC Global Research, Vietnam is well positioned to benefit from the shift in global trade and supply chain changes. Over the past decades, Vietnam has developed and become closely linked to the global supply chain, with exports growing sevenfold since 2007. Multinational corporations are increasingly interested in Vietnam. This is due to many factors, including competitive costs and FDI support policies. Other costs, such as energy needed to operate factories and diesel, which is widely used in industries, also have a competitive advantage in price, as they are often lower than in other countries in the region.
Notably, HSBC experts emphasized that Vietnam has made significant progress in establishing various economic agreements with trade partners, such as the Vietnam - EU Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or the Regional Comprehensive Economic Partnership (RCEP). These are agreements that have many advantages for export goods originating from Vietnam and are a great "attraction" for foreign investors.
Attracting "big guys" to invest in high technology
Previously, Vietnam was seen as a country that attracted FDI mainly thanks to its processing power. However, in recent years, with the direction and innovation from the State, Vietnam has strongly attracted high-tech investment projects. HSBC experts also commented that there have been signs that more complex knowledge and production processes are penetrating Vietnam. For example, in 2022, Samsung established a research and development center in Hanoi to further develop its production capacity and started producing some semiconductor components. Meanwhile, Apple has also increased its influence in Vietnam, allocating product development resources to iPad.
Most recently, in early December, the investment announcement event of the world's number 1 technology corporation NVIDIA showed that Vietnam is attracting many technology "giants". Minister of Planning and Investment Nguyen Chi Dung affirmed that in the trend of diversifying supply chains and complicated geopolitical developments in the world, Vietnam is emerging as an attractive destination for investors in the semiconductor industry thanks to its high-quality human resources at competitive costs. Along with that is strong investment and upgrading of infrastructure; Mechanisms and policies are increasingly open and transparent.
Minister Dung said that in terms of attracting investment and supporting the development of the semiconductor ecosystem, the Ministry of Planning and Investment has contacted and worked with many leading technology corporations such as Qualcomm, Google, Meta, LAM Research, Qorvo, AlChip... and has a specific plan to shift the supply chain to Vietnam, develop research centers, expand investment, business and production in Vietnam. Vietnam currently has 174 FDI projects in the semiconductor sector with a total registered capital of nearly 11.6 billion USD.
Source: https://baophapluat.vn/ly-giai-suc-hut-viet-nam-doi-voi-dau-tu-nuoc-ngoai-post536093.html
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