Attracting FDI from CPTPP countries is increasingly promising

(PLVN) - Vietnam is proving attractive to international investors, especially from countries in the CPTPP bloc. FDI from CPTPP countries into Vietnam continues to grow impressively, from $9.5 billion in 2019 to nearly $11.5 billion in 2022.

04/12/2024 09:26

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(PLVN) - Vietnam is proving attractive to international investors, especially from countries in the CPTPP bloc. FDI from CPTPP countries into Vietnam continues to grow impressively, from $9.5 billion in 2019 to nearly $11.5 billion in 2022.

Attracting foreign direct investment (FDI) is a benefit of the Comprehensive and Progressive Trans- Pacific Partnership (CPTTP). Beyond increasing the exchange of goods and services, this agreement also presents an opportunity for Vietnam to attract FDI from CPTTP partners due to the removal of 95% of customs tariffs in a market of over 500 million people, with a total GDP exceeding US$10 trillion, accounting for approximately 13.5% of global GDP and about 14% of total world trade; with major markets such as Japan, Canada, Australia, and Singapore.

In the first nine months of 2023, 2,254 new projects were granted investment certificates (a 66.3% increase compared to the same period), with a total registered capital of over US$10.23 billion. Of this, two CPTPP members alone contributed 67%: Singapore led with a total investment of over US$3.98 billion, and Japan ranked third with nearly US$2.9 billion in registered investment. In the coming years, FDI attraction from CPTPP countries will continue to increase, thanks to Brunei, Malaysia, Singapore, Japan, and Australia, which are traditional partners in trade and investment.

It can be said that, with 16 FTAs ​​already signed, Vietnam is becoming more attractive than ever in the eyes of CPTPP investors, especially partner countries that have participated in many FTAs, or are also participants in FTAs ​​that include Vietnam, such as Singapore, Japan, and Australia.

Each year since its entry into force, attracting FDI from CPTPP member countries has become increasingly promising. While in 2019, Vietnam attracted approximately US$9.5 billion in FDI from CPTPP countries, by 2022, this figure had risen to nearly US$11.5 billion, an increase of US$2.6 billion compared to 2021. The number of newly approved projects reached 577, an increase of 77 projects compared to 2021. The CPTPP members with the highest total registered investment capital in Vietnam were Singapore with US$6.4 billion and Japan with US$4.7 billion.

Vietnam and Japan have many concrete plans for technology transfer cooperation. Within the framework of the Vietnam-Japan Joint Committee on Industrial, Trade and Energy Cooperation, the Ministry of Industry and Trade of Vietnam has collaborated with the Japanese Ministry of Energy, Trade and Industry to develop a plan for implementing cooperation activities in the automotive and supporting industries sectors in the coming years.

Singapore is also one of the leading investors in Vietnam. Over the years, attracting investment from Singapore to Vietnam has been based on a strategy of economic cooperation and technology transfer under five pillars, including: Energy connectivity; sustainable development; infrastructure; digital and innovation; and connectivity (including areas such as education, finance, information and communication technology, tourism, investment, trade and services, and transportation).

Overall, promoting FDI from Japan and Singapore in particular, and investors from CPTPP markets in general, into Vietnam in the coming period will continue to focus on strengthening cooperation and technology transfer in the fields of digital economy and innovation, infrastructure, sustainable development, and meeting climate change goals; and promoting multifaceted connectivity in trade, investment, finance, transportation, and tourism. These are also the key areas of cooperation with FDI enterprises in the coming period.

Experts say that to fully exploit the opportunities to attract FDI, investment promotion activities need to shift their focus to approaching potential investors, especially large FDI corporations. This will help leverage new-generation free trade agreements and opportunities to participate in the supply chains of multinational corporations, taking advantage of the opportunities from the CPTPP market which still has much potential.

Source: https://baophapluat.vn/thu-hut-fdi-tu-khoi-cac-nuoc-cptpp-ngay-cang-kha-quan-hon-post533758.html