Bright prospects for FDI attraction in 2024

Production at the Powersports Manufacturing Inc. in Trang Bang IP, Dong Nai (Photo: VNA)

With a series of cooperation document signing and investment licencing for foreign investors right from the beginning of the year, Vietnam expects impressive results in attracting foreign direct investment (FDI) this year.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, in the first two months of this year, Vietnam drew more than 4.29 billion USD, up 38.6% year on year.

In the period, 405 new FDI projects were licenced, a rise of 55.2% over the same period last year, with a combined capital of nearly 3.6 billion USD, doubling the figure recorded in the same period last year.

A representative from the agency said that a surge in the number of projects with some large-scale ones is one of the major reasons behind the rise in FDI.

Minister of Planning and Investment Nguyen Chi Dung said that maintaining a stable investment environment and choosing potential investors is key to effectively attract foreign investment.

Nakajima Takeo, Chief Representative of Japan External Trade Organization (JETRO) in Vietnam, said that Vietnam is still one of the attractive and promising markets for Japanese firms.

He cited a JETRO survey showing that in the next 1-2 years, the rate of Japanese firms intending to expand business in Vietnam is 56.7%.

However, Minister Dung held that this year, Vietnam may face many challenges in FDI attraction, including those from the complicated and unpredicted world situation.

The application of the global minimum tax regulation is predicted to eliminate the role of traditional forms of incentives such as those in tax and land rent.

Prof. Dr. Nguyen Mai, Chairman of the Association of Foreign Invested Enterprises (VAFIE), held that Vietnam should design policies to draw FDI in prioritised areas such as high technology, innovation and energy.

Minister Dung said that in order to increase FDI attraction, Vietnam should continue adjusting policies to suit the global investment trend, speeding up administrative reform, and strengthening human resources training./.