Attracting FDI inflows into Vietnam with a favorable investment environment

	Import and export of FDI enterprises decreased by more than 20 billion USD
	Long An Customs: Accompanying and supporting FDI enterprises
	Hai Duong seeks ways to facilitate FDI enterprises

Samsung is one of the Korean enterprises investing in Vietnam the most in recent years. Photo: Tran Ngoc.

These are also the areas that Vietnam is focusing on prioritizing attracting foreign investment and giving many incentives and investment support in the future.

Potential and opportunities still outweigh challenges

Vietnam is witnessing a significant change in the global business and investment environment under the influence of complex geopolitical factors, unprecedented events such as the Covid-19 pandemic, and challenges. Multilateral measures such as climate change or emerging issues such as the global minimum tax policy affecting not only the recovery momentum but also promote a faster and stronger shift of foreign investment flows around the world, bringing about many changes in investment decisions. In which, it can be mentioned that the recent slowdown of foreign investment flows into Vietnam, although Vietnam is still seen as a very attractive and potential investment destination.

Speaking at the seminar "Resonating investment power for a prosperous Vietnam", Deputy Minister of Planning and Investment Do Thanh Trung assessed that, along with the increasing number of projects and investment capital, the foreign investment sector has become a dynamic economic sector and an important and efficient growth engine of the economy. At the same time, the foreign investment sector has made important contributions to Vietnam's international integration process, expanding relations with other countries, as well as enhancing Vietnam's position and role in the world and region, helping Vietnam reach out successfully.

Assessing Vietnam's investment environment, Furusawa Yasuyuki, General Director of AEON Vietnam, shared, not only AEON but also Japanese enterprises in general also want to invest in Vietnam, because of many attractive factors. Firstly, Vietnam has the potential for economic development when the population growth rate is fast, especially the middle class, with the people's living standard increasing. Besides, Vietnam has a much higher growth rate than other Asian countries, as well as Japan.

Second, Vietnam and Japan have good diplomatic relations not only in the retail sector but also in many other fields. This year also marks the 50th anniversary of the establishment of diplomatic relations between Vietnam and Japan. “The investment environment in Vietnam is always changing, but the potential and opportunities still outweigh the challenges,” the AEON representative assessed.

Promote new capital flow

To promote new investment flows into Vietnam, Bui Trung Kien, Vice President of CME Solar Investment Company, said that the Government needs to create more investment opportunities for investors in this field in Vietnam. Specifically, Kien suggested that the Government should have policies to increase support in order to increase research and development, diversify projects and improve the quality of existing projects. One of those solutions is to strengthen cooperation between businesses and research institutions, helping to come up with new solutions to improve performance and reduce investment costs.

"In addition, the Government also needs to promote legal regulations to protect the interests of investors and minimize risks in the investment process," Kien said.

According to Choi Joo Ho, General Director of Samsung Vietnam, in order to enhance competitiveness, for the sustainable development of Vietnam and FDI enterprises need to improve the investment environment. According to Choi Joo Ho, the improvement of the investment environment must be carried out continuously to flexibly adapt to changes in the external environment. And the global minimum tax regime is a prime example of the most important recent "external environmental changes".

"The response of the Vietnamese government to this change is very important. As a mechanism applied by international organizations, specific policies are made with the agreement of many stakeholders. Therefore, if Vietnam also applies these policies, it can significantly eliminate the instability in the business activities of affected FDI enterprises," said Choi Joo Ho.

In addition, regarding the implementation of commitments and building trust between the Government of Vietnam and businesses. Citing the story between the Government of Vietnam and Samsung, Choi Joo Ho emphasized the serious implementation of the commitment between the Government of Vietnam and Samsung on the basis of a deep relationship of mutual trust and the two sides have formed a development relationship in a positive cycle. This is also an experience for other foreign investment enterprises to refer to. At the same time, Samsung also suggested that foreign-invested enterprises continuously carry out social contribution activities in Vietnam. Foreign-invested enterprises cannot only enjoy benefits in Vietnam and then leave, but businesses need to accompany and develop with the Vietnamese people in the spirit of "harmonious benefits, shared risks".