Vietnam, a safe post COVID-19 investment destination
|
Vietnam attractive in the eyes of investors
Frederick Burke, Managing Partner of the international law firm Baker McKenzie, says Vietnam’s response to the epidemic has made foreign enterprises feel safer doing business in Vietnam.
Michael Sieburg, a partner at Asia-focused consultancy firm YCP Solidiance, reveals there is a sense in many of his discussions that Vietnam, relative to many other countries, will move on the investors’ radar.
A representative of the Kizuna Joint Development Corp, which builds factories in Vietnam, says given its fast response to the virus, they expect foreign investment to pour into Vietnam after the pandemic. The company is speeding up plans to finish a 100,000-square-metre factory in southern Vietnam in July in anticipation of an increase in post-pandemic demand.
Before the epidemic, many businesses with factories in China had eyed Vietnam and other ASEAN countries.
Nguyen Anh Van, an official of the Van Trung 2 Industrial Park in Bac Giang province, says they have heard from a growing number of foreign investors wishing to invest in the industrial park.
“The first thing foreign investors ask about is the provincial investment policies, whether they’re favorable or not. The second matter of their concern is the location and infrastructure of the industrial park. Third, they want to know about labour quality and availability,” Van explains.
Taking advantage of opportunities
Successful containment of the COVID-19 epidemic has confirmed Vietnam’s ability to ensure a stable, safe environment.
Nikkei Asian Review reports shifting of investment is inevitable after the COVID-19 pandemic and ASEAN countries like Vietnam will be favored destinations. The IMF’s World Economic Outlook report for 2020 agrees Vietnam has the best growth prospect in ASEAN. Meanwhile, the World Bank concludes Vietnam’s economy was resilient to external shocks in the first few months of this year and its economy will rebound.
Director of the American Chamber of Commerce Adam Sitkoff says Vietnam is a lucrative investment destination in Asia.
According to Hirai Shinji, Chief Representative of Japan’s External Trade Organization in Ho Chi Minh City, Vietnam has successfully contained the epidemic and will now receive more foreign direct investment.
ChosunBiz, an economic newspaper published by the Republic of Korea’s Chosun Group, points out that the Vietnamese government’s determination to fight the epidemic received strong support from foreign investors. It gives as example Samsung’s closure of factories elsewhere in the world, but not in Vietnam.
Bloomberg predicts the Vietnamese economy will bounce back because Vietnam is a favored destination for foreign investors. It says US$12 billion was registered in Vietnam in the first four months of this year.
The Vietnamese government has set a GDP growth target of 5%. Fitch Ratings has kept the outlook for Vietnam at “stable” as they expect a strong recovery in 2021, with growth forecast at 7.3%.
Related News
Meets standards to attract FDI into supporting industries
15:40 | 24/03/2024 Import-Export
Bright spots at the beginning of the year
10:51 | 23/03/2024 Headlines
Unlock capital flows and create favorable conditions for investors
10:22 | 27/03/2024 Import-Export
Vietnam experiences a trade surplus of over US$11 billion in two months
13:47 | 15/03/2024 Import-Export
Latest News
ASEAN, RoK agree on transposition of AKFTA product specific rules
15:00 | 28/03/2024 Import-Export
Opportunities for digital technology businesses to go global
14:58 | 28/03/2024 Import-Export
Vietnam, China eye stronger border trade
14:57 | 28/03/2024 Import-Export
Improve competitiveness and sustainable development of the seafood industry
09:51 | 28/03/2024 Import-Export
More News
Business environment reform needs further promotion: expert
14:47 | 27/03/2024 Import-Export
Singapore is the largest foreign investor in VN in Q1
14:43 | 27/03/2024 Import-Export
Thai Binh boosts investment, trade cooperation with Germany
14:38 | 27/03/2024 Import-Export
Lifting obstacles to develop industrial parks
10:24 | 27/03/2024 Import-Export
More than 300 businesses, manufacturers to attend VGMF 2024
15:55 | 26/03/2024 Import-Export
Connecting with FDI firms helps boost wood exports: insiders
15:52 | 26/03/2024 Import-Export
Doosan Vina exports nearly 2,000 tonnes of modules to US
15:51 | 26/03/2024 Import-Export
Wood processing enterprises strive to increase the proportion of individually designed goods
09:50 | 26/03/2024 Import-Export
Take advantage of shrimp export opportunities right from early year months
15:53 | 25/03/2024 Import-Export
Your care
ASEAN, RoK agree on transposition of AKFTA product specific rules
15:00 | 28/03/2024 Import-Export
Opportunities for digital technology businesses to go global
14:58 | 28/03/2024 Import-Export
Vietnam, China eye stronger border trade
14:57 | 28/03/2024 Import-Export
Improve competitiveness and sustainable development of the seafood industry
09:51 | 28/03/2024 Import-Export
Business environment reform needs further promotion: expert
14:47 | 27/03/2024 Import-Export