‘Vietnam is an attractive destination for foreign investors’

A bright spot on the map of FDI attraction

Speaking at the Industrial Real Estate Forum 2022 organized by Investment Newspaper on the morning of May 24, the Deputy Minister of Planning and Investment said that the epidemic had disrupted supply chains, disrupted goods circulation activities, delaying the implementation of projects, forcing multinational corporations and corporations to calculate investment strategies, all countries have to study and change investment attraction policies to suit the context. new.

In that context, Vietnam is still a bright spot on the map of attracting foreign direct investment (FDI). Investors from Asia, Europe, the United States and ASEAN continue to promote investment in Vietnam.

In 2021, despite the complicated developments of the COVID-19 epidemic and many localities having to implement social distancing, FDI inflows into Vietnam still reached 31.15 billion USD, up 9.2% compared to 2020. Newly registered and adjusted investment both increased, especially expanded investment capital increased sharply by 40.5%.

Deputy Minister of Planning and Investment Tran Duy Dong. Photo: Duc Thanh

“In the first four months of 2022, there was 10.8 billion USD of FDI registered into Vietnam. In which, additional investment capital was 5.29 billion USD, up 92.5% over the same period. Adjusted capital and capital contribution, share purchase increased sharply, by 92.5% and 74.5% over the same period, respectively, showing that investors’ confidence continues to believe in the business investment environment and other businesses. solutions and policies for economic recovery after the epidemic,” Dong emphasized.

Besides, according to Mr. Dong, the fact that foreign investors continue to consider Vietnam as an attractive destination is important because of the very effective solutions of both the Government, businesses and people in controlling the problem. flexibly and effectively control the COVID-19 epidemic to promote production and business and restore economic development.

The Government has implemented synchronous solutions to create conditions for production – business activities, trade in services, and people’s lives to return to normal. In particular, along with accelerating the rate of vaccination coverage, the Government issued Resolution 11 to implement Resolution 43 of the National Assembly on the socio-economic recovery and development program.

With the stable political environment and the Government’s high determination in implementing the above solutions, in the first quarter of this year, Vietnam’s GDP grew by 5.03% over the same period last year, higher than the growth rate. growth of 4.7% in the first quarter of 2021 and 3.7% in the first quarter of 2020, showing that the economic recovery momentum has become clearer,” Mr. Dong informed.

In particular, import and export activities became a bright spot. In the first four months of 2022, the country’s total import-export value reached 242.43 billion USD, up 15.9% over the same period in 2021. In which, foreign direct investment enterprises continued to made an important contribution when this sector achieved a total import-export value of USD 168.37 billion, up 14.9%.

New-generation free trade agreements such as CPTPP and EVFTA continue to act as a positive driving force for economic growth in general and Vietnam’s international trade activities in particular in the post-pandemic period.

The promotion of export activities in the context of high world demand for goods will further strengthen Vietnam’s position as an attractive destination for manufacturers, as part of the supply chain in the context of increasing demand for goods. globalization today. For example, recently, Japanese investors have chosen Vietnam as an important link in the formation of the global supply chain. From there, the demand for industrial real estate will also increase.

Developing the service industry in depth

According to Deputy Minister Dong, although there are many opportunities as mentioned above, the competition to attract FDI is also taking place fiercely, especially among countries in the region in the context that investment activities are still suffering. the heavy impact of the pandemic as well as geopolitical tensions in the world.

Therefore, in the coming time, Vietnam needs to focus on implementing measures to develop service industries in depth; increase the productivity of the service sector and the production and business sector, complete and improve the quality of the infrastructure system; training high-quality human resources; supplement the policy of supporting industry development; supplementing policies to attract effective and high-quality FDI capital.

At the same time, the exponential growth of e-commerce, especially the sudden increase of this modern form of commerce during the pandemic, has spurred a huge demand for warehouse real estate. , logistics services… In that context, there should be more policies and mechanisms for the logistics and warehousing industry to become an important component of the industrial real estate industry.

Vietnam has been preparing the necessary conditions to be ready to receive the new wave of investment transformation, becoming an important production base of the world by continuing to improve the institution, business investment environment, and so on. Open business to selectively attract, prioritize projects using modern and environmentally friendly technologies. Industrial parks and economic zones have improved their infrastructure, factories and international quality, pilot studies on a number of industry clusters to form production networks, supply chains and participate more deeply in industrial zones. global value chains in some localities.

Currently, the country has 335 industrial parks with a total area of ​​more than 100,000 hectares that are continuing to develop strongly to meet the investment and production needs of domestic and foreign investors. Industrial parks are gradually transforming the development model towards more sustainable economic, social and environmental.

“From 2015 to now, the Ministry of Planning and Investment has coordinated with UNIDO and a number of international organizations to pilot the conversion of traditional industrial parks to ecological industrial parks, transforming industrial development space from horizontal. In the eco-industrial parks, businesses participate in cleaner production activities, efficiently use resources, and cooperate in production to realize currently operating in industrial symbiosis,” said Deputy Minister Dong.

In order to complete the strategic orientations and planning for the development of a new industrial park model in the coming time, this is an opportunity to listen to opinions of domestic and foreign investors on issues related to the development of new industrial park models. the form of industrial parks such as: urban-service industrial park, ecological industrial park above suitable to the advantages and conditions in some localities; synchronously develop urban areas, housing, public utility service works for workers in industrial parks; to develop supporting industrial parks and specialized industrial parks for a certain industry or group of industries; developing the logistics industry, logistics services associated with the e-commerce industry…

According to Vu Pham