Minister of Planning and Investment Nguyen Chi Dung said that Vietnam continues its policy of selectively attracting investment from FDI capital, bringing foreign investment activities to a new stage.
Even though the global economy is heavily affected by the COVID-19 pandemic, Vietnam's selective investment attraction policy is in the direction of reducing quantity, increasing quality, eliminating small-scale projects, little added value begins to take effect. The year 2022 is forecast to be favorable for attracting international capital flows. Vietnam continues to be a safe, attractive and potential investment destination for foreign investors.
Knitted fabric production line at a Hong Kong-invested enterprise
Expectations flourish
In the first 2 months of 2022, FDI capital into Vietnam, investment capital through capital contribution and share purchases, reached 769,6 million USD, an increase of 41,7% over the same period last year. The number of newly registered projects increased by 45,2%, reaching 183 projects. However, newly registered investment reached 631,8 million USD, down 80,9% over the same period last year. The leader of the Foreign Investment Department said that the sharp decrease in newly registered investment capital in the first two months of 2022 over the same period is completely understandable. That's because in the first two months of last year, many projects with a scale of over 100 million USD registered to invest in Vietnam, especially the O Mon II Thermal Power Project, with an investment of 1,3 billion USD. Meanwhile, in the first 2 months of 2022, there is only one project with large investment capital of 136,4 million USD. This causes that in the past 2 months, Vietnam has attracted nearly 5 billion USD of foreign investment capital, down 8,5% over the same period last year. However, this decrease may only be temporary, as large-scale projects are still waiting for investment certificates and does not affect the recovery trend of foreign investment flows into Vietnam. . Mr. Do Nhat Hoang, Director of the Foreign Investment Department, said the decline in new investment projects mainly focuses on small and micro-scale groups. Vietnam's policy of selectively attracting investment in the direction of reducing quantity, increasing quality, eliminating small-scale projects with little added value is starting to take effect.
Car frame welding line at Toyota Motor Vietnam Company
Ratio FDI In occupations with high risk of pollution and outdated technology such as textile and dyeing, there has been a gradual decrease. Not only increasing in quantity, FDI capital flows into Vietnam also have high quality projects, green trends, and the use of renewable energy. Typically, LEGO Group (Denmark) signed a Memorandum of Cooperation with Vietnam-Singapore Industrial Park Limited Joint Venture Company (VSIP) to build a new factory in Vietnam.
Among the total number of countries investing in Vietnam, Singapore rose to the top with registered capital of over 1,7 billion USD, accounting for 34,2% of total investment capital in Vietnam and an increase of 59,3% over the same period in 2021. Korea ranked second with over 1,4 billion USD, accounting for 28,2% of total investment capital, followed by China, Japan... These are countries that are considered to have high-tech projects, bringing benefits. High economic efficiency for the economy. Not only increasing investment capital for new projects, many large corporations have been expanding projects in Vietnam after achieving many business successes. Recently, the LEGO Group (Denmark) came to work at the Ministry of Planning and Investment and hopes to quickly complete the necessary investment procedures. As long as there is a billion-dollar project granted an investment certificate, foreign investment capital in Vietnam will accelerate. This shows foreign investors' confidence in the results of epidemic prevention COVID-19 of the Government, as well as the investment environment in Vietnam in the new normal context.
Vietnam is still a safe and attractive destination
The year 2022 is forecast to be favorable for attracting international capital flows. First of all, Vietnam is actively reforming administrative procedures, so surveys, investment procedures or connection and circulation of goods take place smoothly. The global supply chain is also recovering rapidly, and world consumer demand is gradually increasing again, creating an opportunity for businesses to boost production. Along with that, Vietnam's foreign affairs activities are forecast to continue to be vibrant; including the proactive integration of investment promotion content. Particularly during Prime Minister Pham Minh Chinh's trip to Europe at the end of 2021, the total value of commitments, memorandums of cooperation and investment of domestic and foreign businesses amounted to 30 billion USD and will be " "sweet fruit" in 2022 as well as the following period.
Mr. Takeo Nakajama, Chief Representative of the Office of the Japan Trade Promotion Agency (JETRO) in Hanoi, said that recently, FDI capital flows from Japan to Vietnam have also begun to adjust with the participation Many projects in the retail and service sectors target Vietnam's domestic market and export markets to take advantage of opportunities from the Free Trade Agreements Vietnam has participated in. A typical example of this shift is the event that Uniqlo - a global fashion brand from Japan and AEON retail group have continuously expanded their business in Vietnam recently. This is also a positive shift aimed at Vietnam's potential retail market with a population of nearly 100 million people, as well as economic growth prospects that are forecast to be quite positive in 2022. Previously, JETRO also announced the results of a survey on the current situation of Japanese enterprises investing abroad in 2021. The results show that although Vietnam was severely affected by the COVID-19 epidemic in 2021, Japanese enterprises still very optimistic about the investment and business environment in Vietnam in 2021 and 2022. Japanese business plans to expand business within the next 1-2 years in Vietnam still reaching 55,3%, ranking first in the ASEAN region.
In addition to Japanese or European businesses, Korean businesses are also planning new investments in Vietnam. In addition, US businesses highly appreciate the Government's efforts in responding to the epidemic, thereby affirming that Vietnam will still be a safe, attractive and potential investment destination for investors. foreign investment in 2022.
Workers at Taiwan-invested enterprises (China)
2022 is also the time when businesses and multinational corporations in Europe, Japan, Korea, America... restructure, allocate resources and their global production and supply networks. According to Vice Chairman of the Association of Foreign Investment Enterprises Nguyen Van Toan, Vietnam can still exploit its potential well and promote its strengths thanks to its favorable geographical location and increasingly improving investment and business environment. goodness and progress. The infrastructure system, especially transportation and energy, is also more synchronous, so it will attract foreign businesses to arrange production networks according to the trend of regional diversification and boosting exports. Former Director of Department Foreign Investment Department Phan Huu Thang believes that focusing on calling for investment in high-tech industries and source technology is an inevitable trend, so that foreign investment contributes more to the process of restructuring and modernizing the economy. .
In addition, localities need to develop human resources to ensure they can welcome high-tech projects from developed countries into Vietnam. In terms of policy, there also needs to be further improvement so that investors can feel more secure when investing in Vietnam while promoting the connection between foreign investors and Vietnamese businesses, thereby increasing value as well as promoting the connection between foreign investors and Vietnamese businesses. such as the efficiency of investors in Vietnam; Promote the implementation of commitments in free trade agreements that Vietnam has signed, including agreements such as: European Union-Vietnam Free Trade Agreement (EVFTA), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)./.
Source: VNA/Vietnam+