Bright prospects in Vietnam’s FDI attraction

There are factors that strongly drive the growth of Vietnam’s foreign direct investment (FDI) attraction in the second half of this year and there will be interesting surprises waiting ahead, said Chairman of the Vietnam's Association of Foreign Invested Enterprises (VAFIE) Prof. Dr. Nguyen Mai.
Illustrative photo (Photo: thanhnien.vn)

Illustrative photo (Photo: thanhnien.vn)

There are factors that strongly drive the growth of Vietnam’s foreign direct investment (FDI) attraction in the second half of this year and there will be interesting surprises waiting ahead, said Chairman of the Vietnam's Association of Foreign Invested Enterprises (VAFIE) Prof. Dr. Nguyen Mai.

According to Mai, the economy grew nearly 7% in the second quarter, and also increased in the first half of 2024 against the same period last year. The growth is one of important factors that help Vietnam attract FDI.

In addition to political stability, Vietnam's FDI attraction policies have been getting good valuation from foreign investors, he said, adding that the strategy to attract FDI in key fields such as semiconductors and future technology is on the right track, he said.

Regarding the semiconductor industry, the US has pledged to support Vietnam in training 50,000 engineers and 500,000 workers from now to 2030. Big corporations such as VinGroup, FPT or Viettel are all actively engaging in the semiconductor industry.

These factors are providing strong support to Vietnam’s FDI attraction, and there will be surprises in the near future, Mai said.

Not only the US and the EU, investors from China and Hong Kong (China) are flocking to Vietnam to learn about investment opportunities in technology and renewable energy, he said.

With the recovery, Vietnam could attract 35-37 billion USD in newly registered and expanded FDI in 2024, Mai forecast.

With their advantages, some localities have been emerging in attracting FDI.At the World Economic Forum (WEF) meeting held in Dalian, China last month, representatives from the Foxconn Technology Group announced its new plant in Vietnam that has just been put into operation.

Foxconn has so far had factories in five provinces in Vietnam with a total investment of 4 billion USD, employing about 80,000 workers.

Notably, Foxconn said it has decided to pour nearly 400 million USD to build a factory specialising in producing electronic components, assembling and processing PCB circuit boards in Nam Son Industrial Park in northern Bac Ninh province.

Last month in northern Bac Giang province, Nokia announced cooperation with Foxconn to produce AirScale products, including the latest generation of massive MIMO AirScale radio devices serving 5G infrastructure.

A Nokia representative said the project will start in July, and products made at this factory will be used in both the domestic and international markets. Foxconn is Nokia's global manufacturing partner, and will expand its capacity to produce Nokia’s 5G products in Vietnam.

Whenever technology "eagles" like Foxconn and Goertek accelerate their expansion in a destination, it will create opportunities for the destination to attract other technology giants like Apple, Google or Huawei because Foxconn or Goertek are manufacturers that supply original equipment to major technology companies in the world.

Vietnam attracted nearly 15.2 billion USD in FDI in the first six months of this year, a year-on-year increase of 13.1%, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

The foreign investors funneled their capital into 48 cities and provinces across the nation, with Bac Ninh leading in FDI attraction with nearly 2.6 billion USD. In the second and third places were Ba Ria – Vung Tau and Quang Ninh, with corresponding FDI of some 1.54 USD billion and 1.36 billion USD.

The FIA stated that investment capital mostly flows to localities with many advantages such as good infrastructure, stable human resources, improvements in administrative reforms and dynamic investment and trade promotion.

Particularly, the ten localities of Bac Ninh, Ba Ria-Vung Tau, Quang Ninh, Hanoi, Hai Phong, Ho Chi Minh City, Dong Nai, Bac Giang, Binh Duong, Hung Yen attracted 79.5% of new FDI projects and nearly 78% of the country's FDI capital in first five months of this year./.

Source: VNS
en.vietnamplus.vn

Related News

Latest News

88.8% of import turnover are equipment and raw materials for production

88.8% of import turnover are equipment and raw materials for production

VCN - In the first six months of 2024, import turnover of goods is estimated to reach US $178.45 billion, up 17% over the same period last year. The import structure of goods in the first six months of the year shows a positive signal when up to 88.8% of the total import turnover is the group of goods that need to be imported.
Vietnam

Vietnam's textile industry gains edge with high-value production capabilities

Vietnam has scored higher overall than China and Bangladesh in the United States Fashion Industry Association (USFIA)’s recent survey comparing the competitive advantages of textile-exporting countries to the US.
Trade disputes are rarely brought to international courts

Trade disputes are rarely brought to international courts

VCN - Stating that trade disputes have a significant impact on import-export activities of businesses, talking to the press, Mr. Tran Viet Anh, Vice Chairman of the Ho Chi Minh City Business Association, made many recommendations for businesses.
Banks permitted to sell investment-linked insurance products

Banks permitted to sell investment-linked insurance products

Commercial banks can continue to sell investment-linked insurance products through the bancassurance channel.

More News

Agricultural, forestry and fishery product exports reached US $ 29.2 billion in the first half of the year

Agricultural, forestry and fishery product exports reached US $ 29.2 billion in the first half of the year

VCN - In the first six months of the year, total export turnover of agricultural, forestry and fishery products reached US $29.2 billion, up 19% over the same period in 2023.
Quality varieties spur Vietnamese rice industry

Quality varieties spur Vietnamese rice industry's growth: experts

The success of the rice sector is the fruit of a concerted effort spanning research, production and trade, with high-quality seeds delivered to farmers' hands, former Minister of Agriculture and Rural Development Cao Duc Phat has assessed.
Minister asks for FIATA’s support in dealing with increased shipping freights

Minister asks for FIATA’s support in dealing with increased shipping freights

Minister of Industry and Trade Nguyen Hong Dien has suggested the International Federation of Freight Forwarders Associations (FIATA) provide practical measures to assist Vietnamese businesses in overcoming challenges caused by the increased shipping freight rates, port congestion, and shortage of empty containers.
Efforts made to help firms deeply join global semiconductor supply chain

Efforts made to help firms deeply join global semiconductor supply chain

The Ministry of Planning and Investment (MPI) has taken various solutions to support domestic firms to join the global semiconductor supply chain more intensively, heard a meeting held on July 15 by the ministry.
What do businesses do to cope with foreign trade traps?

What do businesses do to cope with foreign trade traps?

VCN - In commercial disputes that are required to be resolved at the Vietnam International Arbitration Center (VIAC), many Vietnamese businesses are suffering disadvantages due to negligence right from the negotiation and contracting.
Shifting production to expand exports to the Northern European market

Shifting production to expand exports to the Northern European market

VCN - Nordic countries often map out policies to achieve EU goals sooner than others. Among them, general principles and standards regulating manufacturers' responsibilities for textiles and garments from Nordic countries need to be paid attention by businesses.
Businesses advised to stay prudent to avoid trading scams

Businesses advised to stay prudent to avoid trading scams

Authorities have continuously warned Vietnamese businesses to stay prudent when trading with foreign partners in the face of a recent scam increase.
Leather, footwear exports to hit 27 billion USD in 2024

Leather, footwear exports to hit 27 billion USD in 2024

Export revenue of the leather, footwear and handbag sector is predicted to hit 26-27 billion USD in 2024 on the basis of the positive results seen so far, according to the Vietnam Leather, Footwear and Handbag Association (LEFASO).
Tra fish export to CPTPP market reaches 114 mln USD as of June 15

Tra fish export to CPTPP market reaches 114 mln USD as of June 15

Vietnam raked in 114 million USD from tra fish export to the signatory nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as of June 15, a year-on-year increase of 10%, according to the General Department of Vietnam Customs.
Read More

Your care

Latest Most read
88.8% of import turnover are equipment and raw materials for production

88.8% of import turnover are equipment and raw materials for production

VCN - Assessing the situation of importing goods, the Ministry of Industry and Trade said that in June 2024, it is estimated to reach US $30.15 billion, down 7.9% compared to the previous month, compared to the same period last year, the import turnover o
Vietnam

Vietnam's textile industry gains edge with high-value production capabilities

Vietnam has scored higher overall than China and Bangladesh in the United States Fashion Industry Association (USFIA)’s recent survey comparing the competitive advantages of textile-exporting countries to the US.
Trade disputes are rarely brought to international courts

Trade disputes are rarely brought to international courts

VCN - Disputes over foreign trade and more specifically the import-export sector, of which export disputes are the most numerous, the majority are related to the quality of goods; delivery time; dishonesty of the seller or buyer.
Banks permitted to sell investment-linked insurance products

Banks permitted to sell investment-linked insurance products

Commercial banks can continue to sell investment-linked insurance products through the bancassurance channel.
Agricultural, forestry and fishery product exports reached US $ 29.2 billion in the first half of the year

Agricultural, forestry and fishery product exports reached US $ 29.2 billion in the first half of the year

In the first six months of the year, total export turnover of agricultural, forestry and fishery products reached US $29.2 billion, up 19% over the same period in 2023.
Mobile Version