VN’s attractiveness in foreign investment cooperation
15:21 | 22/09/2020
VGP – In addition to the competitive advantages, such as stable politics and macroeconomy and the abundant young labor force with a golden population structure, Viet Nam’s investment environment has been witnessing the emergence of many new factors that help increase its attractiveness to foreign capital flows.

VN’s attractiveness in foreign investment cooperation

Among those factors are the country’s effective control of the COVID-19 pandemic which has been internationally recognized fight against COVID-19, and its maintenance of positive economic growth.

Many large corporations show keen interest

Since the outbreak of COVID-19, many investment promotion activities and meetings of multinational corporations interested in Viet Nam have been shifted to the online form with the videoconferencing site in Viet Nam located at the Ministry of Planning and Investment’s Executive Center.

In July, more than 1,000 Japanese investors attended the virtual Viet Nam-Japan investment promotion conference to seek new investment opportunities in Viet Nam, in the context of enterprises tending to restructure their production and supply chains to diversify investment and avoid overdependence on a single country or partner.

Among the businesses supported by the Japanese Government to shift production or expand investment in ASEAN, 15 have received support when investing in Viet Nam in the new value chain.

As shown in the Foreign Investment Agency’s statistics, foreign direct investment (FDI) inflow in Viet Nam reached US$19.54 billion in the first eight months of 2020, equivalent to 86.3% of the figure from the same period last year, with disbursement estimated at US$11.35 billion, equal to 94.9%.

Capital contribution and share purchase by foreign investors plunged but new and additional FDI pledges maintained an uptrend with respective increases of 6.6% and 22.2% respectively thanks to the attraction of large projects.

According to the agency, despite declining FDI attraction during January-August, the result was still much better compared to other countries in the context of a sharp decline in global investment due to the impact of the disease, demonstrating Viet Nam’s attractiveness in the eyes of international investors.

At present, there remain a lot of foreign investors interested in investing in Viet Nam. Regardless of the heavy impact of COVID-19 on the economy in many countries, Viet Nam still posted a trade surplus in the past eight months, which was mainly contributed by the foreign-invested sector.

In the near future, Viet Nam will give priority to selectively attracting the quality and efficient capital flows in line with Viet Nam’s investment cooperation demand.

Accordingly, Viet Nam proactively accesses and is ready to support large corporations and FDI projects in accordance with the aforementioned orientation in order to implement favorable and effective business & investment activities.

By Vien Nhu

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