2024 is a new opportunity to increase quantity and quality in attracting FDI

VCN - The flow of foreign direct investment (FDI) into Vietnam will increase sharply in 2023, so according to Mr. Nguyen Van Toan (pictured), Vice Chairman of the Association of Foreign Investment Enterprises (VAFIE), this has created a favorable premise for Vietnam's FDI attraction in 2024.
For the For the "four-horse chariot" to achieve the growth goal in 2024
Hai Phong moves to attract 2-2.5 billion USD in FDI in 2024 Hai Phong moves to attract 2-2.5 billion USD in FDI in 2024
Foreign direct investment enterprises gain confidence and momentum from improved business environment Foreign direct investment enterprises gain confidence and momentum from improved business environment
2024 is a new opportunity to increase quantity and quality in attracting FDI
Mr. Nguyen Van Toan

How do you evaluate the picture of FDI attraction in 2023?

In 2023, Vietnam has reached a record number of registered FDI capital with USD 36.6 billion, an increase of 32.1% compared to 2022. Of which, newly registered capital reached more than USD 20 billion, an increase of USD 62.2 billion. 2%; adjusted registered capital reached nearly USD 7.9 billion, down 22.1%; the total value of capital contributed by foreign investors reached more than USD 8.5 billion, an increase of 65.7% over the same period. This result is possible thanks to Vietnam's always improving and attractive investment environment with many outstanding advantages. Stable politics, stable macroeconomics, promising economic growth, and outstanding diplomatic relations are Vietnam's great strides that help attract new investment. If well prepared, 2024 will be the starting year for a new wave of FDI into Vietnam.

As you just discussed above, a strong increase in FDI capital inflows into Vietnam in 2023 will be a solid launching pad, creating a favorable premise for Vietnam to attract FDI in 2024. How do you forecast the development? Expect FDI inflows into Vietnam this year?

Vietnam has a lot of experience in attracting FDI. In particular, in international relations, the push to upgrade diplomatic relations between Vietnam and the US has created a spillover effect on FDI capital flows from the US and Europe into Vietnam. For the EU, the Netherlands is the country investing the most in Vietnam. In addition, in 2023, Germany will also be a country with increased investment (about USD 366 million) in Vietnam, a sharp increase compared to 2022.

​In addition to available competitive advantages including a stable economic and political situation, favorable location for investment activities, a large number of signed free trade agreements, and an abundant labor force, Vietnam also has potential in rare earth - an important material in the development of the semiconductor industry, the development of microchips and electronics. This creates an advantage for Vietnam.

Many corporations from the US have come to explore the market and the possibility of cooperation with Vietnam in investing in the rare earth and semiconductor industries. Recently, Mr. John Neffeur, Chairman of the American Semiconductor Industry Association (SIA) and leaders of leading American semiconductor businesses, such as Intel, Qualcom, Ampere, ARM... have come to Vietnam to explore investment opportunities. In particular, Mr. Jensen Huang, Chairman and General Director of NVIDIA Group - the world's most valuable chip manufacturing corporation, also came to Vietnam to explore investment cooperation opportunities. Thus, opportunities to attract FDI investment in 2024 are opening up like in 2008 - the time Vietnam had just joined the WTO. Factors such as the battle to control core technology, chip technology, and future technology are opening up opportunities for Vietnam in attracting high-tech FDI.

To take advantage of the above opportunity, what solutions do we need to implement, sir?

The imposition of the global minimum tax from January 1, 2024 will lose Vietnam's tax incentive advantage in attracting FDI investment, but it will also bring benefits to Vietnam, helping to solve the transfer pricing problem in FDI investment activities. To adapt to the global minimum tax, Vietnam needs to change the investment environment to retain large FDI investors and attract new investors. 2024 is forecast to be a breakthrough year in attracting FDI. To attract and absorb high-quality capital, it is necessary to improve the investment environment, do a good job of intellectual property protection, reform administrative procedures, and soon improve the quality of Vietnamese human resources. .

The year, 2024 for Vietnam is a new opportunity, a new turning point to increase both quantity and quality of attracting FDI investment. The question is how to take advantage of FDI capital flows as China and Korea have done to become a developed country. 2024 is the starting point in attracting new, high-quality, high-tech FDI investment into Vietnam; therefore, Vietnam needs appropriate solutions to effectively receive FDI investment capital. In particular, Vietnam needs to have appropriate support policies so that domestic enterprises can participate in the export value chain of FDI corporations in the segment with technology and higher value than today.

To do this, many solutions need to be implemented synchronously such as: using global minimum tax revenue in the future to support attracting FDI investment; support domestic enterprises to participate more deeply in the supply and production chains of FDI enterprises. Besides, businesses can be supported through infrastructure development; or support Vietnamese enterprises to participate in the supply and production chains of FDI enterprises; Promote support for labor training; continue to improve the investment environment to attract new, higher quality FDI investors.

By Xuan Thao/Bui Diep

Related News

Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Vietnam

Vietnam's economy is recovering well

VCN - According to Dr. Nguyen Quoc Viet, Deputy Director of the Vietnam Institute for Economic and Policy Research (VEPR), by the end of the third quarter of this year, Vietnam's economy had recovered relatively well amid optimism about the overall growth of the world economy in late 2024 and 2025.

Latest News

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.

More News

Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Read More

Your care

Latest Most read
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural and aquatic products could penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Mobile Version