Good signals from foreign capital inflows
VGP – In the first two months of 2021, Viet Nam recorded good signals from foreign capital inflows when a number of large-scale foreign direct investment (FDI) projects were awarded with investment certificates.
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Good signals from foreign capital flows |
Despite the decline, this is a quite positive result in the context of declining FDI attraction globally due to the COVID-19 pandemic.
Attractive destination
In the global trend of investment shift, Viet Nam has emerged as an attractive destination drawing investors’ interest thanks to its numerous advantages regarding political stability, macroeconomic stability, geographical location, land and environment conditions, and human resources. Infrastructure of industrial zones, export processing zones and economic zones across the country continues to be improved and upgraded to catch the investment inflows.
According to a recent report by the Economist Intelligence Unit (EIU), Viet Nam has emerged as an attractive destination for FDI in Asia, even scoring higher points than India and China in terms of FDI policies.
Hirai Shinji, chief representative of the Japan Trade Promotion Organization (JETRO) in Ho Chi Minh City, said that right before the outbreak of COVID-19, Viet Nam had been on the list of popular investment destinations for Japanese enterprises.
In JETRO’s surveys with its member companies, Viet Nam has always been among the top three, and in the latest survey, Viet Nam ranked second, above Thailand and only behind China.
However, in the context of the pandemic resurging in many countries, including Viet Nam, it has affected travel as well as investors’ investment and project expansion decisions.
Even, at a recent session of the United Nations Conference on Trade and Development (UNCTAD), it was forecast that global foreign investment could “bottom out” this year before rising again in 2022.
Therefore, to catch the wave of foreign investment into Viet Nam, experts suggested that competent agencies should continue to improve the investment environment towards attracting multinational corporations with strength in capital and technology. “We should set up a specialized unit to support investors, accompany and stand ready to solve their problems, aimed at shortening the process of business registration and project implementation and ensuring investors’ benefits,” Phan Huu Thang, former Director of Foreign Investment Department, recommended.
By Vien Nhu
