Higher-quality FDI expected to pour into Vietnam

Illustrative image (Photo: VNA)

It is forecast that higher-quality FDI will pour into Vietnam in the near future, mostly in clean energy, hi-tech agriculture and mechanical engineering.

As many as 15.4 billion USD in FDI was disbursed in the first nine months of 2022, up 16.2% year on year and 5.7 percentage points from the figure in the past eight months.

As of September 20, the total new, adjusted and contribution of capital for share purchases by foreign investors topped 18.7 billion USD, down 15.3% from the same period last year, reported the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

In the nine months of this year, there were 1,355 new licensed projects with a total capital of 7.12 billion USD, up 11.8% in volume but down 43% in value.

FIA attributed the decrease in capital to limited travelling during COVID-19 pandemic at the beginning of this year, making it difficult for foreign investors from flying to Vietnam to seek opportunities. The geo-political conflict in Europe, mounting inflation pressures, and disruption in global supply chains have also badly affected major economies’ outbound capital flows, especially Vietnam’s investment partners.

Meanwhile, adjusted capital and contribution of capital for share purchase recorded increases. Up to 769 projects were permitted to adjust capital worth 8.3 billion USD in total, marking a 13.4% rise in volume and 29.9% increase in value. Foreign investors made 2,697 capital contributions to buy shares with 3.28 billion USD, down 4.7% in volume and up 1.9% in value.

Minister of Planning and Investment Nguyen Chi Dung affirmed many times that in order to welcome new investment flows, Vietnam needs to stay ready in terms of land, human resources, infrastructure while keep improving its institutions and business environment.

According to the minister, it is necessary to launch investment promotion campaigns to assure investors that Vietnam is a safe and trustworthy investment destination.

State management agencies, localities and business associations need to evaluate opportunities and challenges, business and market trends to offer consultancy to member enterprises, he said./.