Stronger FDI waves expected into Vietnam

Foreign direct investment (FDI) flows to Vietnam are slowing down but promising moves are showing that waves of FDI to the country will be stronger in the coming time, said Chief Representative of the Japan External Trade Organisation (JETRO) in Hanoi Nakajima Takeo.

Citing the results of a survey conducted with 3,100 businesses based in Japan, the official said that Vietnam ranks fourth in the world in terms of export destinations for Japanese companies, second only behind the US in attracting Japan’s foreign investment, and this shows the great interest of Japanese businesses in Vietnam as they believe that the Vietnamese market will develop strongly and be a destination for businesses.

In the JETRO survey on Japanese investment in Asia and Oceania in 2022 that received responses from 603 Japanese enterprises operating in Vietnam, 60% of the surveyed enterprises said they will expand their investment in Vietnam in the next one to two years, up 4.7 points from the previous year. 

It was the highest among the Southeast Asian countries, after India (72.5%) and Bangladesh (71.6%).

Not only Japanese companies but those from Singapore, the Republic of Korea, and Taiwan (China) are also eyeing the Vietnamese market.

During Prime Minister Pham Minh Chinh’s visits to Singapore and Brunei last week, investment funds and investors from the two countries confirmed their interest to invest in Vietnam.

At the Vietnam-Singapore Business Forum taking place during Chinh’s visit to Singapore, Patrick Lee, chair of the Board of Members of Standard Chartered Bank Vietnam (Limited), said that Vietnam is a rising star in the region.

Vietnam’s attractive investment policies and favourable demographics make it the market of choice for many Singapore investors and businesses. With Vietnam’s burgeoning consumer market and opportunities from green energy to infrastructure development, Standard Chartered sees greater interest among Singapore clients to expand into Vietnam, he said.

At a recent conference on promoting the government’s action plan to implement the 13th-tenure Politburo’s Resolution No. 30-NQ/TW on orientations for socio-economic development and safeguarding defense and security in the Red River Delta to 2030 and vision to 2045, nearly 10 billion USD were committed for the region in the coming time.

In the region, Hanoi, Bac Ninh, Vinh Phuc, Quang Ninh, Thai Binh, and Hai Phong are all “magnets” attracting investment in recent years. This is the second largest FDI attraction in the country, accounting for 31.4% of the total FDI that Vietnam has attracted in the past 35 years. 

Major groups in the world, such as Samsung, LG, Honda, Canon, Foxconn, and Toyota, have chosen localities in the region and made them their production bases.

Secretary of the Vinh Phuc provincial Party Committee Hoang Thi Thuy Lan said that the province is determined to focus on building mechanisms, improving the business environment, and competitiveness, and continuing to strengthen state management for investment projects as well as actively supporting investors to remove difficulties.

Meanwhile, Chairman of Bac Ninh provincial People’s Committee Nguyen Huong Giang said that the province is implementing the most practical policies to develop high-quality human resources and technical expertise, and continuing favourable policies to attract investment.