Vietnamese FDI attraction to recover next year

VOV.VN - Despite a sharp fall in foreign direct investment attraction globally, FDI inflows in Vietnam remain stable in 2021 and are anticipated to bounce back next year as soon as the COVID-19 pandemic is completely brought under control, according to economists.

The Ministry of Planning and Investment reports Vietnam has attracted US$26.46 billion in FDI attraction during the past 11 months, a year-on-year rise of 0.1%.

Most notably, the government’s strong commitments to accompany and support FDI businesses have built up investors’ confidence in the national business climate.

Most recently, Danish toy production company LEGO Group signed a memorandum of understanding (MoU) to pour US$1 billion into its first-ever carbon neutral factory to be built in the southern province of Binh Duong.

During a recent trip to India and the Republic of Korea (RoK) made by National Assembly Chairman Vuong Dinh Hue, Dai An Group also signed an MoU with India’s Sri Avantika Contractors Ltd for the construction of a US$500 million Pharmaceutical Park.

Meanwhile, Saigon Telecom Technology Joint Stock Company (SAIGONTEL) and India’s Ecologic Engineering Company inked a co-operation agreement in the fields of infrastructure, industry, and innovation development, with the total investment value of up to US$4 billion.

Billionaire Prashant Ruia, who owns Essar, a multi-industry corporation with an annual profit of about US$2.2 billion, also expressed a strong desire to invest in the Vietnamese market, especially in the oil and gas sector.

The Minitry of Planning and Investment says Vietnam remains attractive destination for foreign investors that continue to focus on developing digital infrastructure and boosting the semiconductor field.

It’s noteworthy that the country’s foreign investor sentiment indicator in September reached 939 points, representing the highest score since November, 2019, and a rise of 27.9% against the same period from last year.

Economists point out that the recovery trend of the global investment flow will open up a wealth of opportunities for Vietnam in the time ahead.

Thargbodee Serng Adichaiwit, vice president of the Thai Chamber of Commerce in Vietnam (ThaiCham), projects that the Vietnamese economy is likely to grow double next year, and that Thai investors would soon resume injecting huge money in the country moving forward.

Nguyen Anh Duong, head of the General Research Department under the Central Institute for Economic Management (CIEM), believes that Vietnam’s fast rebound, coupled with the recovery of the Asian production network as a whole, will significantly contribute to accelerating FDI attraction.

Duong says foreign investors will gain plenty of business opportunities from new-generation free trade agreements, especially from the Regional Comprehensive Economic Partnership (RCEP), thereby making investment decisions to diversify production bases as the region's economy bounces back.

Mergers and acquisitions (M&As) in particular are expected to experience a boom next year as the RoK and Japanese investors are keen on investing in the Vietnamese market, according to the auditing and consulting firm KPMG.

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