Solutions for maintaining Vietnam's position as a bright spot for foreign direct investment

VCN - Attracting FDI capital has been one of the bright spots contributing to the positive economic outcomes of Q1/2024, setting a favorable stage for the year 2024. This outcome has reaffirmed investors' confidence in Vietnam's investment environment and continues to drive decisions for new investments and the expansion of existing projects in Vietnam.
Vietnam- poweful magnet for foreign direct investment Vietnam- poweful magnet for foreign direct investment
Foreign direct investment enterprises gain confidence and momentum from improved business environment Foreign direct investment enterprises gain confidence and momentum from improved business environment
State revenue collection reached 31.7% of current appropriation in the first quarter State revenue collection reached 31.7% of current appropriation in the first quarter

Positive trends

According to Mr. Do Nhat Hoang, Director of the Foreign Investment Agency (Ministry of Planning and Investment), in Q1/2024, over 6.17 billion USD of foreign investment was registered in Vietnam, marking a 13.4% increase compared to the same period in 2023. Of this, newly registered capital was more than 4.77 billion USD, up 57.9% from last year. The sharp increase in the number of projects and the emergence of large-scale projects are among the main drivers of the robust growth in foreign investment. This includes many significant projects in energy sectors, such as battery production, photovoltaic cells, silicon bars, and projects producing components, electronic products, and high value-added products such as: the 120 million USD project by Boviet Hai Duong, specializing in solar photovoltaic panels; the 454 million USD project by Trina Solar Cell in Thai Nguyen; or the 275 million USD project by Gokin Solar Hai Ha Vietnam in Quang Ninh... According to Ms. Phi Thi Huong Nga, Director of the Industrial Statistics and Construction Department (General Statistics Office), this result has reaffirmed the trust of investors in Vietnam's investment environment and continues to lead to new investment decisions and expansion of existing projects in Vietnam.

"FDI attraction is one of the highlights contributing to the positive economic outcomes of the first quarter, setting a favorable stage for 2024. This is the most evident demonstration of the FDI business community’s support and trust in the policies, solutions of the Government, the Prime Minister during the past period," Ms. Nga emphasized.

However, the foreign business community still believes that the investment environment in Vietnam, despite its advantages such as political stability and an improving quality of the labor force, still shows several areas needing improvement in the coming period, these issues are evident through cumbersome administrative procedures; investment attraction policies are subject to changes and the supply chain is not yet perfected.

Vietnam textile and garment strives to increase the localization rate
Attracting FDI remains one of the bright spots contributing to the positive economic outcomes of the first quarter. Photo: H.Diu

Maintaining a stable investment environment

Assessing the investment environment in Vietnam over the past period, Prof.Dr. Nguyen Mai, Chairman of the Foreign Investment Business Association, stated that sectors needing priority in attraction to create breakthrough developments in Vietnam such as high technology, innovation, energy... still lack appropriate mechanisms for investment attraction. Although some preferential investment policies have been issued, the outcomes have not met expectations. Particularly, the shortage of labor and local raw materials in some industries, localities have not been fully addressed, leading to risks of disruption, local supply chain breaks in the short term. Therefore, to effectively attract FDI, four solutions need to be implemented, with the top priority still being the perfection of institutions, laws. Accompanying this, is the enforcement of institutions, policies, linked with decentralization, empowerment, individualization of responsibilities, and emphasizing the responsibility of leaders.

From a local perspective, Mr. Tran Tuan Anh, Deputy Head of the Management Board of Industrial Zones and Export Processing Zones Hanoi, stated that Hanoi aims to establish 2 to 5 new industrial zones by 2025, creating clean land to attract investment projects. The city will prioritize selective investment attraction; among them, priority is given to receiving high technology projects, clean technology, environmentally friendly with high commercial value products to participate in the global value chain, global supply chain. According to Mr. Mai Son, Permanent Vice Chairman of Bac Giang Provincial People's Committee, Bac Giang will continue to persistently implement solutions to improve the investment and business environment, attract investment, and timely remove bottlenecks, barriers for businesses, investors.

To attract FDI effectively, Minister of Planning and Investment Nguyen Chi Dung believes that this year, it is necessary to maintain the stability of the investment environment. Simultaneously, select potential investors in key sectors such as high technology, information technology, high-quality services. To increase the attraction of foreign investment in the future, Vietnam will continue to review, adjust foreign investment policies in line with global investment trends; in which, special attention is given to industries, sectors that can contribute to the greening of the economy, energy transition, green growth, digital transformation...

Moreover, the Government continues to reform administrative procedures, especially in the implementation of procedures following the investment registration certificate such as: land, construction, fire prevention, environment, customs... Simultaneously, accelerate the linkage training of human resources according to the needs of businesses as well as anticipate trends to train human resources to meet the investment attraction needs in the field of high technology, advanced technology in the coming time.

"Localities need to be ready with necessary conditions regarding infrastructure, clean land, energy, human resources to attract large investment projects, truly meaningful for economic - social development. Along with that, accelerate the progress of public investment projects, especially projects in the field of traffic infrastructure to meet the requirements of investors," emphasized Minister Nguyen Chi Dung.

By Xuan Thao/Tran Minh

Related News

Many foreign enterprises find opportunities and expand investment in Vietnam

Many foreign enterprises find opportunities and expand investment in Vietnam

VCN - In the context of the world investment wave shifting, Vietnam has the opportunity to become the world's factory, many foreign enterprises have been looking for investment opportunities as well as expanding investment in Vietnam.
Rapid greening of the logistics sector to avoid being "eliminated"

Rapid greening of the logistics sector to avoid being "eliminated"

VCN - In the current context, if criteria for greening the logistics sector are not quickly and immediately implemented, businesses will face significant difficulties in the future and gradually be "eliminated" from domestic and global business, trade, and import-export activities.

Latest News

Exports in 2024 expects to reach US$370 billion

Exports in 2024 expects to reach US$370 billion

VCN – Motivated by recent development, exports in 20204 may reach US$ 370 billion, the General Department of Vietnam Customs said.
Imports and exports achieve more than US$270 billion

Imports and exports achieve more than US$270 billion

VCN - By mid-May, the country's total import-export turnover reached US$270.82 billion, according to the latest statistics from the General Department of Vietnam Customs.
Coffee output in 2023-2024 crop forecast to fall 20 per cent

Coffee output in 2023-2024 crop forecast to fall 20 per cent

Việt Nam’s coffee output in the 2023–2024 crop year is estimated to decrease by 20 per cent compared to the previous crop year, to 1.47 million tonnes, the lowest in four years.
Pharmaceutical industry sees slowing growth momentum

Pharmaceutical industry sees slowing growth momentum

After record profits and strong growth in 2023, the industry’s momentum faced limitations in 2024 due to rising raw material costs and increased market competition.

More News

Agricultural and food businesses increased profits thanks to export recovery

Agricultural and food businesses increased profits thanks to export recovery

VCN - Many agricultural and food exporters have recorded positive business results thanks to the momentum from the recovery of major markets and solutions to enhance deep processing, helping to improve product value and business efficiency.
The auto industry does not shrink from many challenges

The auto industry does not shrink from many challenges

VCN - In the context of the import tax reduction roadmap being implemented when Vietnam participates in commitments in Free Trade Agreements, the pressure of competition on the Vietnamese automobile industry is also increasingly fierce. Therefore, in addition to tax and fee support, many breakthrough solutions and policies are needed to create a boost for the auto industry.
Traceability helps improve product value

Traceability helps improve product value

VCN - Traceability of origin has been and is a mandatory requirement for Vietnamese goods when exporting to several markets. The application of information technology and the use of QR codes is an effective solution in traceability, increasing value and promoting product consumption, especially agricultural products.
Vietnamese pepper prices see strong upward trend

Vietnamese pepper prices see strong upward trend

The Vietnam Pepper and Spice Association has expected pepper prices to continue rising every week.
E-commerce boosts exports of Vietnamese products

E-commerce boosts exports of Vietnamese products

Digital platforms have played a key role in helping Vietnamese firms take their high-quality products to the world, insiders have said.
Increasing the value of rice grains from the project of 1 million hectares of high quality rice

Increasing the value of rice grains from the project of 1 million hectares of high quality rice

VCN - The implementation of the project of 1 million hectares of high-quality rice will contribute to promoting the transition from traditional farming methods to synchronous mechanization, developing large-scale, stable and long-term concentrated raw material areas, ensuring sustainable and effective farming quality and minimizing environmental pollution. Vietnam is also the first country in the world to build a large-scale project on sustainable rice production and reduced emissions.
Hai Phong Port strengthen solutions to improve cargo handling capacity

Hai Phong Port strengthen solutions to improve cargo handling capacity

VCN - The flow of goods passing through Hai Phong port area has tended to improve recently.
Five trends in exporting through e-commerce

Five trends in exporting through e-commerce

VCN - On May 22, 2024, Amazon Global Selling announced the prominent cross-border e-commerce (CBEC) trends shaping Vietnam's online export economy. Concurrently, it launched phase two of the program "CBEC: The breakthrough era" in collaboration with the Vietnam e-Commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade.
Vietnamese firms urged to watch global trade policies

Vietnamese firms urged to watch global trade policies

Experts say Vietnamese firms should keep an eye on global trade moves by major economies to figure out how best to promote the consumption and export of products made in Việt Nam, in the context of a glut of cheap Chinese goods flooding the world market.
Read More

Your care

Latest Most read
Exports in 2024 expects to reach US$370 billion

Exports in 2024 expects to reach US$370 billion

VCN - However, as of May 15, exports still see positive growth.
Imports and exports achieve more than US$270 billion

Imports and exports achieve more than US$270 billion

By mid-May, the country's total import-export turnover reached US$270.82 billion, according to the latest statistics from the General Department of Vietnam Customs.
Coffee output in 2023-2024 crop forecast to fall 20 per cent

Coffee output in 2023-2024 crop forecast to fall 20 per cent

Việt Nam’s coffee output in the 2023–2024 crop year is estimated to decrease by 20 per cent compared to the previous crop year, to 1.47 million tonnes, the lowest in four years.
Pharmaceutical industry sees slowing growth momentum

Pharmaceutical industry sees slowing growth momentum

After record profits and strong growth in 2023, the industry’s momentum faced limitations in 2024 due to rising raw material costs and increased market competition.
Agricultural and food businesses increased profits thanks to export recovery

Agricultural and food businesses increased profits thanks to export recovery

VCN - According to data from the Ministry of Agriculture and Rural Development, agricultural, forestry and fishery export turnover in April reached 5.14 billion USD, an increase of 19.7% compared to April 2023.
Mobile Version