Vietnam remains an attractive destination for FDI flows globally

Successful FDI attraction

In mid-October, Amkor Technology Inc, one of the world’s largest providers of outsourced semiconductor packaging, design, and test services, inaugurated the Amkor Technology Vietnam factory at Yen Phong II-C Industrial Park in Bac Ninh province after nearly two years of construction. The group poured US$530 million into the first phase of the project, whilst it has also committed to raising its capital investment to US$1.6 billion by 2035.

Susan Kim, executive vice chairman of Amkor Technology, said that the Bac Ninh project is part of the group’s wider strategic business plan as part of its operational network and sustainable development of the semiconductor field globally over the coming years.

The project is expected to facilitate the formation and development of the semiconductor ecosystem in the Vietnamese market, said Kim.

Alongside Amkor Technology, many other multinational corporations have been choosing Vietnam as a new investment destination. According to a recent survey released by the Japan External Trade Organisation (JETRO), the country is an attractive destination for global FDI. Takeo Nakajima, head of the JETRO Representative Office in Hanoi, pointed out that the Vietnamese market has been Japan’s second largest FDI destination over the past six consecutive years.

Statistics recently unveiled by the Ministry of Planning and Investment highlight that the country attracted US$20.2 billion in registered FDI over the past nine months, representing an annual rise of 7.7%. As of September, a total of 144 countries and territories had poured over US$455 billion into more than 38,300 projects nationwide.

“Currently, Vietnam has become the third largest economy in ASEAN, with its GDP hitting more than US$400 billion. Simultaneously, it is also evaluated by international organizations as one of the successful countries in FDI attraction,” said Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc.

Due to these positive gains, many international organisations have expressed great appreciation for the country’s economic development results and have upgraded its credit ratings.

David Whitehead, vice president of the Australia-Vietnam Chamber of Commerce (AusCham), expressed his belief that the Government would continue to implement solutions aimed at stabilising the macroeconomy, controlling inflation, and ensuring major economic balances, all of which would help to create a stable environment for business activities whilst turning the country into an attractive investment destination.

Coherent investment policy

As part of efforts to create a conducive business environment, Whitehead suggested that the Government continue to revise policies regarding licensing procedures, land use, tax incentives, and work permit issuance, while simultaneously removing unnecessary procedures and regulations on business conditions. This will help the country to attract large-scale FDI capital, especially in new industries such as semiconductor and chip manufacturing, he said.

Meanwhile, Gaur Dattatreya, CEO of Bosch Global Software Technologies Co. Ltd., said that constant changes in policy introduction and management mechanisms, coupled with an overlap between the responsibility and authorisation of competent agencies, could result in a lack of transparency and consistency in terms of the Government’s policies and decisions.

During a meeting held alongside representatives of the FDI community in Hanoi on October 16, Prime Minister Pham Minh Chinh affirmed that the Government always seeks to protect the legal and legitimate rights and interests of investors in any case.

He offered assurances that the Government would always accompany businesses to overcome difficulties and take advantage of opportunities to maintain long-term and efficient operations locally on the basis on interest harmony and risk sharing.

He also insisted that the Government would not criminalise economic and civil relations, but instead handle any violations of the law to create a fair, healthy, and transparent production and business environment for all economic sectors to operate on an equal footing.

Vietnam will continue to create favourable conditions and build a safe, transparent, and highly competitive business and investment environment so that investors, including foreign investors, are able to feel secure to make a long-term investment in the Vietnamese market, said the PM.