The country among top 10 destinations for FDI firms
Among the 1,300 European businesses inquiring about the investment climate in Vietnam, up to 63% listed the country among the top 10 destinations for foreign direct investment (FDI) firms.
Vietnam had attracted more than US$2.36 billion USD in FDI as of January 20, an increase of 40.2% over last year, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
Foreign investors disbursed US$1.48 billion during the month, a year-on-year increase of 9.6%.
Companies from 39 countries and territories invested in Vietnam in January 2024. Of them, Singapore took the lead with more than US$1.4 billion, accounting for 59.5% of total investment capital, trailed by Japan with nearly US$297 million.
To increase the FDI attraction , the Ministry of Planning and Investment has reviewed and adjusted policies in accordance with global investment trends, with special attention paid to the sector and fields that have the ability to contribute to the process of greening the economy, and boosting energy transition, green growth, and digital transformation.
Foreign businesses highly appreciate the investment and business environment in Vietnam.
According to the 2022-2023 Whitebook released recently by the European Chamber of Commerce in Vietnam (EuroCham), Vietnam’s business environment has improved significantly in recent times and the nation’s global investment appeal remains strong.
A notable 63% of surveyed businesses positioned Vietnam within their top 10 FDI destinations. Even more striking, 31% ranked Vietnam among their top three, while an impressive 16% hailed it as their foremost investment destination. Reflecting this confidence, over half of those surveyed plan to increase their foreign direct investment in Vietnam by the end of the year.
Chairman of EuroCham in Vietnam Gabor Fluit assessed that, although the global economy is in a complex period, the Vietnamese economy still shows resilience and flexibility. An important sign of this is increased European investment in Vietnam. Specifically, Nestlé Vietnam has just announced an additional investment of US$100 million. This emphasizes Europe’s trust in Vietnam, Gabor Fluit affirmed.
Foreign businesses targeting Vietnam
Luigi Santoro – General Director of Ariston Vietnam said his firm is highly interested in business investment in Vietnam and Ariston Vietnam’s long-term investment is part of an important business strategy. He showed his confidence that that foreign businesses are targeting Vietnam which is an attractive and potential investment destination.
According to Luigi Santoro, the Vietnamese market is very attractive because of its open investment environment, good infrastructure, stable policies, and abundant human resources. In addition, Vietnamese people are greatly paying attention to high quality products, and famous brands as their lives are increasingly improving.
A recent survey by the Japan External Trade Organization (JETRO) shows that there are currently more than 2,000 Japanese enterprises investing and doing business in Vietnam, reaching the largest number among ASEAN member states.
Japanese businesses still highly appreciate the business investment environment in Vietnam, stable socio-political situation, and abundant human resources.
Regarding business profit expectations in 2024 compared to 2023, the number of Japanese businesses surveyed by JETRO said 50.4% believed it would improve, 56.7% said they would expand business in Vietnam.
Nakajima Takeo, Chief Representative of JETRO Hanoi was appreciative of the investment environment and potential for cooperation between Japanese and Vietnamese businesses.
In a survey of parent companies in Japan, Japanese businesses still consider Vietnam to be one of the second most attractive and potential markets second only to the No. 1 market, the United States.
According to the JETRO representative, Vietnam has an important position in the global supply chain of Japanese businesses, therefore, they tend to focus more on investing in research and development of new products in Vietnam.
According to the Foreign Investment Department under the Ministry of Planning and Investment, there are currently 144 countries and territories with valid investment projects in Vietnam. Among them, the Republic of Korea leads the way with a total registered capital of nearly US$86 billion, accounting for 18.2% of total investment capital). Singapore ranks second with more than US$76.1 billion, making up 16.1% of total investment capital, followed by Japan, Taiwan, and Hong Kong (China).