FDI influx prompts Vietnam to improve business environment: experts

A recent strong influx of foreign direct investment (FDI) to Vietnam has prompted the government to design long-term policies and create a favourable and transparent environment for foreign investors to operate in a long term in the country, according to experts.

Statistics from the Ministry of Planning and Investment showed that 35-40% of the total FDI capital injected to underway projects in Vietnam are poured to those in industrial parks (IP) and economic zones (EZ). The rate in the manufacturing-processing sector is up to 80%.

Deputy Minister of Planning and Investment Tran Quoc Vuong said that Vietnam is eying a “golden chance” to attract a new FDI wave, especially to IPs and EZs.

To date, 61 out of the 63 cities and provinces have had IPs and EZs, with a total 403 IPs, 18 coastal EZs and 26 border EZs.

The IPs and EZs are destinations for large-scale firms such as Samsung, Panasonic, Boeing, Canon, LG, Sumitomo, Foxconn, and VSIP.

Micheal Vu Nguyen, Boeing country director in Vietnam, said that the firm’s production value in Vietnam has reached US$200 million. He expressed his hope that the Vietnamese Government will continue to maintain open, flexible and effective policies for major suppliers in the aviation sector, enabling them to make more investment in Vietnam.

Experts held that Vietnam is currently a favourable destination for investors thanks to its political stability, fast post-pandemic recovery, ensured macro-economic balances and controlled inflation, along with good infrastructure system and the country’s engagement in a large number of free trade agreements (FTA).

Vu Tien Loc, President of the Vietnam International Arbitration Centre (VIAC), held that the FDI has benefited Vietnam in many ways, prompting the country to speed up economic restructuring and growth model reform, and improve its institution, legal policies, business environment and market economy development.

Nguyen Anh Tuan, Vice Director of the Foreign Investment Agency, said that despite COVID-19 impacts, foreign investment activities in Vietnam are still bustle, benefiting industrial sector, especially supporting industries, as Vietnam is prioritising FDI projects in the fields of high technology, supporting industries, renovation and digital economy, creating favourable conditions for local firms to join global value chain.