Vietnam is still an attractive destination

In the context of Vietnam setting an economic growth target of 8.3 - 8.5% in 2025, aiming for double-digit growth in the following years, FDI is expected to continue to play an important role and become a new driving force for Vietnam to achieve its growth target.

FDI attraction increased by 27.3%

The General Statistics Office ( Ministry of Finance ) said that registered FDI capital invested in Vietnam in the past 7 months reached more than 24.09 billion USD, up 27.3% over the same period last year. This is a positive economic signal in the context of global trade turmoil as it is now, the foreign investment capital achieved in 7 months is a bright spot.

The figure of 24.09 billion USD comes from 3 main components: newly registered capital, adjusted registered capital, and the value of capital contributions and share purchases by foreign investors. FDI capital realized in 7 months is estimated at 13.6 billion USD, up 8.4% over the same period last year and is the highest figure for 7 months in the past 5 years.

Singapore leads among 74 countries and territories with new projects in Vietnam in the first 7 months of the year, with 2.84 billion USD in registered capital (accounting for 28.3%), followed by China, Sweden, Japan, Taiwan and Hong Kong (China).

Mr. Nguyen Van Toan - Vice Chairman of the Association of Foreign Investment Enterprises (FIEs) said that normally when global trade is in trouble, FDI capital flows will also slow down. But Vietnam is a rare bright spot. According to Mr. Toan, the reason is that when the US imposes tariffs on many countries, Vietnam emerges as an attractive alternative. Second, international investors see many positive signals from Vietnam such as the plan to upgrade the stock market, the policy of merging provinces to streamline the apparatus, promoting the private economy and the determination to focus on economic development. These steps are strengthening investors' confidence that Vietnam will continue to accelerate strongly in the coming time. According to Mr. Toan, although not noisy, FDI capital flows are quietly shifting to Vietnam, clearly reflecting the long-term expectations and confidence of international investors in the sustainable development potential of our economy.

Increase trust

The figures also show the growing confidence of the international business community in Vietnam. Investors not only continue to choose Vietnam as a new destination but are also willing to expand the scale of existing projects.

However, to create a breakthrough reform in attracting and using FDI, according to experts, first of all, it is necessary to comprehensively reform investment incentive policies in a targeted, efficiency-based and conditional manner, ending widespread incentives. Instead, a new, highly selective incentive framework should be built, in which the level of incentives depends directly on the implementation results of FDI project commitments. Accompanying these reforms is a fundamental reform of industrial policy in Vietnam, creating conditions for FDI flows to spread positive impacts on technology and productivity.

At the same time, strengthen the capacity of domestic enterprises and build a real supporting industry. Implement a “national supplier development program” to comprehensively support potential supporting industry enterprises in terms of management, technology and access to credit. Build a platform connecting FDI enterprises and domestic suppliers to solve the problem of lack of information. These solutions require selective intervention by the State, from creating markets to investing in national research and development and attracting FDI with commitments to transfer real technology.

In addition, it is necessary to create a breakthrough in human resource development, especially high-quality human resources. At the same time, it is necessary to establish a governance framework to attract FDI with inter-sectoral and inter-regional coordination. Build a national coordination mechanism to clearly define the roles between the central and local governments...

daidoanket.vn

Source: https://baolaocai.vn/viet-nam-van-la-diem-den-hap-dan-post879684.html