Vietnam expects to welcome more investors next year

Illustrative image (Source: VNA)

Vietnam is still regarded by investors as an attractive destination thanks to its stable politics and macro economy, favourable geographical location, and advantages in land and human resources, according to Deputy Minister of Planning and Investment Tran Quoc Phuong.

The country has maintained growth in 2020 despite the marked impact of the COVID-19 pandemic on economic activities, Phuong said, noting that Vietnam has, therefore, become a major candidate during the transition of the value chain in Asia.

During online investment promotion events with partners in Asia and Europe held recently by the Ministry of Planning and Investment (MPI), major investors again expressed their interest in investment in Vietnam, he added.

In fact, major groups such as Apple, Foxcom, and Luxshare have increased their orders and investments in the country, with capital amounting to billions of US dollars.

Do Nhat Hoang, head of the MPI’s Foreign Investment Agency, expects that Vietnam will welcome many investors later this year and next year, especially after Prime Minister Nguyen Xuan Phuc gave approval to the resumption of certain international flights.

Upgraded infrastructure in industrial, processing, and economic zones has also played a role in investment attraction, as industrial and economic areas nationwide lured about 517 foreign projects with total investment of around 8.5 billion USD in the first nine months of this year.

In the first nine months of this year, the country had 10,009 foreign projects valued at some 197.8 billion USD, of which 70 percent has been disbursed. There were 9,806 domestic projects with investment of some 2.34 quadrillion VND.

Especially, the number of domestic projects in industrial and economic zones stood at 442 with combined capital of about 91 trillion VND (3.9 billion VND).

MPI reported that as at the end of September, businesses in industrial and economic zones had earned 135.7 billion USD, down 3.5 percent year-on-year, and generated jobs for about 3.83 million workers.

The total export value in these zones hit 10.1 billion USD, a rise of 0.7 percent year-on-year. Import revenue was 87.2 billion USD, down 1.2 percent.

As of the end of September, a total of 366 industrial parks had been established, with 279 operational, mainly in key economic regions.

The Prime Minister has recently approved the establishment of 19 coastal economic zones covering about 871,100 ha, of which 17 have been formed.

In anticipation of a new foreign investment wave, Vietnam has reviewed its land fund at industrial parks, focused on human resources training, promoted the support industry, and connected major FDI projects, while removing difficulties faced by businesses and improving the local investment environment, Hoang said.