Australian Financial Review: Viet Nam remains charming investment destination

Though the rapidly rising Delta COVID-19 infections have hit manufacturing in Ho Chi Minh City - Viet Nam’s commercial hub - the big-picture story of Viet Nam being a favored destination for foreign investment is not expected to change, the daily newspaper said.

Even as forecasts are trimmed, economists have faith the nation will bounce back.

Earlier, HSBC cut its economic growth forecast from 6.1% this year to 5.1%. However, Viet Nam’s recovery prospects still look rosy with strong fundamentals.

Low labor costs, reliable infrastructure and a smooth bureaucratic process have attracted the likes of Samsung, Foxconn, Nike, Adidas, Gap and Levis.

All are now scrambling for a plan B, with many factories that are still open struggling to maintain the “3 in 1” policy whereby employees eat, sleep and work on site, said AFR.

In 2021, newly- and additionally-registered foreign direct investment capital increased in the first eight months, while capital contributions and share purchases dropped, according to the Vietnamese Ministry of Planning and Investment (MoPI).

As of August 20, total amount of disbursed FDI valued US$ 11.58 billion, representing a year-on-year increase of 2% despite complicated disease outbreak. 

The MoPI reported that a total of 1,135 projects received new investment certificates, with a total of nearly US$11.4 billion, up 16.3% on-year. About 640 projects applied for capital expansion by adding a total of US$5 billion, up 2.3% on-year

By Kim Loan