Bright prospects predicted in FDI attraction in 2022 and following years

Vietnam expects good results in foreign direct investment (FDI) attraction in 2022 and following years, with good signals seen right from the beginning of this year, reported the Dau tu (Investment) newspaper.

The first FDI project receiving investment licence in Vietnam in this year is the Hai Lang liquefied natural gas (LNG) power plant project in the central province of Quang Tri with total investment of US$2.3 billion.

This project alone has made the FDI in January higher than the figure of US$2 billion recorded in January last year. Meanwhile, many other projects have received investment licences since the beginning of this year, including the addition of US$400 million to Goertek project in Nghe An and a US$136 million Coca-Cola project in Long An province.

Right from the end of 2021, experts already showed optimism about FDI attraction prospects of Vietnam in 2022.

The Foreign Investment Agency under the Ministry of Planning and Investment mentioned the plans of many giant firms such as Apple, Samsung, Nike, Adidas and Foxconn to expand operations in Vietnam. Furthermore, the plans to invest US$1 billion in LEGO factory in Vietnam and Intel’s plan to add US$2.5 billion to is projects in Vietnam as well as Hanamicrom’s intention to invest in a semiconductor factory in the country have also been revealed.

The agency commented that 2022 and following years will be good years for Vietnam with many large-scale and high quality projects from world leading firms.

Meanwhile, 67% of European businesses said that they are optimistic about the business climate in Vietnam. At the same time, a survey by Japan External Trade Organization (JETRO) showed that 55.3% of Japanese said that they intend to expand business in Vietnam, and only 0.3% plan to withdraw from Vietnam. According to the survey, which was conducted from August to September 2021, 56.2% of the firms expect higher profits in 2022, and only 9.6% predicted lower profit.

According to Hirai Shinji, Chief Representative of JETRO in Vietnam, the Japanese firms intending to withdraw from Vietnam still hoped to return to the country when things become better.

In reality, many other firms have come back to Vietnam since the Government adopted the strategy of safely and flexibly adapting to the COVID-19 pandemic.

The business expansion of many other foreign firms in Vietnam, including Samsung from the Republic of Korea, JAPEX from Japan and Sri Avantika Contractor Ltd from India, is also expected to lead to many other opportunities for Vietnam in FDI attraction.