Investors make quick decision to spend in Việt Nam
Since June, more than 1,000 foreign investors have taken the opportunity to expand market share and invest in manufacturing plants in Việt Nam after the COVID-19 pandemic.
Though the pandemic has interrupted activities and slowed newly registered capital for FDI projects, many FDI investors continuously increased their capital.
In a more positive aspect, realised FDI capital of foreign investment projects in the first eight months of 2022 reached $12.8 billion, up 10.5 per cent over the same period in 2021 and up 0.3 percentage points compared to the first seven months.
The department said the growth rate in the number of projects adjusting capital after slowing down for seven months had also increased, reaching approximately the same level as in the first six months of the year. The scale of average capital adjustment/project was relatively high compared to the same period last year, reaching nearly $11.1 million in each adjustment, much higher than the figure in the same period in 2021, which was $7.8 million per adjustment.
The department's director Đỗ Nhất Hoàng said: "This shows that foreign investors consider Việt Nam a safe investment destination, expressing their confidence in the business investment environment, continuing to expand investment in the country. If the COVID-19 pandemic is controlled, the economy will recover and grow again in a new normal state."
Seeing the trend, the director thought there was more work to be done, adding investors entering Việt Nam at this time decided very quickly. They even urged relevant agencies to complete infrastructure, labour resources, energy sources and speed up procedures so that they could proceed to implement the project immediately.
The director said: "The fact that investors invest too much also increases pressure, requiring ministries, sectors and localities to be more professional and prepared, including in land, human resources, and infrastructure, or continuing to improve the business investment environment. There is still a lot of work to be done to really catch the FDI wave."
Chairman of the Association of Foreign Investment Enterprises (VAFIE) Nguyễn Mại forecasts the target set out in Resolution 50-NQ/TW (August 20, 2019) of the Politburo on FDI attraction in the 2021-2025 period with a registered capital of $150-200 billion and realised capital of $100-150 billion was completely possible.
Mại said: "Việt Nam has a stable political and macroeconomic situation with a market of nearly 100 million people and a growing middle class. Besides, the investment and business environment is increasingly improved and international integration is extensive. Moreover, Việt Nam has many conditions for investors to reduce moving costs and stably connect the global supply chain."
