Foreign investment in Vietnam continues bouncing back
Despite the COVID-19 pandemic’s adverse impacts, foreign investors still put their trust in the economy and investment climate of Vietnam in the new normal context, said Director of the Foreign Investment Agency (FIA) Do Nhat Hoang.
Hanoi (VNA) –Despite the COVID-19 pandemic’s adverse impacts, foreign investors still puttheir trust in the economy and investment climate of Vietnam in the new normalcontext, said Director of the Foreign Investment Agency (FIA) Do Nhat Hoang.
A total of 4.42 billion USDof foreign investment was disbursed in the first three months of 2022, up 7.8percent year on year, the FIA's statistics showed.
Dau tu (Vietnam InvestmentReview) cited the World Bank as saying that the increased disbursement indicateda strong rebound in foreign investment in the country.
Meanwhile, the FIA held thatthe Government and relevant agencies’ continual and effective assistance, alongwith efforts by enterprises to weather the pandemic and adapt to the newcontext, have helped firms gradually recover, maintain, and expand operations.That’s why the disbursed capital has been rising over the past months.
Though the registered capitalin Q1, 8.9 billion USD, is equivalent to just 87.9 percent of the figure in thesame period last year, only investment in new projects declined (by 55.5percent) while the number of new projects still increased (37.6 percent), andthe capital poured into existing projects surged 93.3 percent to top 4.06billion USD.
Foreign investment throughcapital contribution and share purchase exceeded 1.63 billion USD, more thandoubling the figure in Q1 last year.
Savills Vietnam said apartfrom favourable macro-factors, the State’s timely support plays the decisiverole in helping consolidate foreign enterprises’ trust in the country.
Together with economicpolicies, the quickly implemented mass COVID-19 vaccination campaign has turnedVietnam into one of the six countries with the largest vaccine coverage in theworld, a basis for foreign businesses to put their trust in the local market’s recovery,according to Savills Vietnam.
The FIA predicted that thefull reopening to international tourists since March 15, the visa exemption forcitizens from some countries, and European investors’ shift of capital flowsdue to the Russia - Ukraine conflict’s impacts will also affect foreigninvestment attraction in Vietnam in the time ahead.
Foreign investment into industrialparks is likely to increase in 2022, with investors mainly coming from Japan,the Republic of Korea, Taiwan, and the EU, the FIA Director noted./.
Thanks to policies to support post-COVID-19 recovery, and the gradual resumption of tourism activities, Vietnam is an investment attraction magnet, Lao Dong (Labour) Newspaper cited The Business Times of Singapore as saying.
Domestic firms should consider expanding partnerships with Japan in new areas like smart city and startup incubation, suggested Dr. Vo Tri Thanh, Director of the Institute of Branding and Competition Strategy.
Despite adverse COVID-19 impacts on the global economy, Vietnam’s selective investment attraction policy with priority to high-quality projects has proved effective, according to experts.
Disbursement of foreign direct investment in Vietnam rose by 7.8 percent compared to 2021 to 4.42 billion USD in the first quarter of this year, a five-year record.
A forum to promote foreign investment into Vietnam themed “A new era of digital transformation and green transition” took place in London on March 30 as part of the Vietnam Days in the UK 2022.
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The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Illustrative image (Photo: VNA) 
