Measures needed to sustain FDI growth trend: expert
Nearly 8.88 billion USD in foreign investment was poured into Vietnam in the first four months of 2023. (Photo: VNA)
Foreign investors still put their trust in the Vietnamese economy, but it is important to take measures for sustaining the upward trend in foreign direct investment (FDI), an expert has said.
In the first four months of 2023, foreign investment projects disbursed about 5.85 billion USD in capital, falling 1.2% year on year, but this rate still rose 1 percentage point from the first quarter.
Meanwhile, foreign investors registered nearly 8.88 billion USD for new and existing projects and contributing capital to or purchasing shares of domestic companies, equivalent to 82.1% of the amount recorded in the same period last year, according to the Ministry of Planning and Investment.
The ministry said although the disbursed capital of FDI projects declined, it still improved from the first months of the year. The newly registered capital bounced back after dropping slightly in the first three months, up 11.1% from Q1, while the number of new projects continued to increase from the same period last year and surged 65.2% from Q1.
The growth in the number of new projects has outpaced that in total registered capital, it pointed out.
Those statistics indicate that small- and medium-sized foreign investors maintain their trust in Vietnam’s investment climate. However, major enterprises remain prudent amid impacts of the global minimum corporate income tax.
A section of the North-South Expressway (Photo: laodong.vn)
Between January and April, the projects worth less than 1 million USD accounted for nearly 70% of the new ones but just nearly 2.2% of the total newly registered capital.
They concentrated in the localities boasting many advantages for foreign investment attraction such as Hanoi, Bac Giang, Ho Chi Minh City, Binh Duong, Dong Nai, Bac Ninh, and Hai Phong.
Asian investors still formed the largest proportion. Among them, Singapore, Japan, China, Taiwan (China), Hong Kong (China), and the Republic of Korea made up 75.1% of the four-month foreign investment.
Dr Ta Dinh Hoa from the Academy of Finance told the Lao dong (Labour) daily that despite certain stagnation, FDI attraction in the first months has improved, showing foreign investors still keep their high expectations for the Vietnamese economy.
It is important to devise measures for sustaining the growth trend, he opined, recommending the country step up developing infrastructure, especially key transport projects, industrial parks, and export processing zones, to enhance its attractiveness to FDI.
Besides, it is also necessary to keep up with the global trend of strongly investing in green factors like green transport and green credit so as to attract foreign investors in a qualitative and sustainable manner, Hoa suggested./.
Related News
Breakthrough policy to attract new generation FDI
10:26 | 29/09/2024 Import-Export
FDI enterprises maintain their own advantages to retain high-quality human resources
08:29 | 04/09/2024 Import-Export
FDI enterprises records US$321 billion in trade
18:00 | 01/09/2024 Import-Export
Vietnam, Singapore promote cooperation in finance
10:18 | 09/08/2024 Finance
Latest News
Import and export are expected to reach 800 billion USD
13:32 | 04/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
13:29 | 04/11/2024 Import-Export
Rice exports likely to set new record in 2024
13:25 | 04/11/2024 Import-Export
Vietnamese goods conquer halal market through trust and quality
09:57 | 04/11/2024 Import-Export
More News
Exporters urged to have strategies to take advantage of UKVFTA for expansion
17:33 | 03/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
17:29 | 03/11/2024 Import-Export
Vietnam and UAE trade sees billion-dollar growth
07:15 | 03/11/2024 Import-Export
Sharing responsibility for ensuring security and safety of the supply chain
07:13 | 03/11/2024 Import-Export
Many factors affecting tuna exports in the last months of the year
19:38 | 02/11/2024 Import-Export
Vietnam still dominates Philippine rice import
19:36 | 02/11/2024 Import-Export
Vietnam cements ties with partners to engage in global semiconductor, AI industries
19:35 | 02/11/2024 Import-Export
Aquatic exports expected to rise in year-end despite challenges
19:33 | 02/11/2024 Import-Export
Trade Defense: The Key to Success for Vietnamese Businesses
10:39 | 02/11/2024 Import-Export
Your care
Import and export are expected to reach 800 billion USD
13:32 | 04/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
13:29 | 04/11/2024 Import-Export
Rice exports likely to set new record in 2024
13:25 | 04/11/2024 Import-Export
Vietnamese goods conquer halal market through trust and quality
09:57 | 04/11/2024 Import-Export
Exporters urged to have strategies to take advantage of UKVFTA for expansion
17:33 | 03/11/2024 Import-Export