Vietnam remains attractive destination for foreign investors

A production line at the Republic of Korea's Bluecom Vina Co., Ltd, in the Trang Due Industrial Park in Hai Phong city. Photo: VNA

Vietnam's economic strength is reflected in controlled macroeconomic indicators and the country has increasingly affirmed and strengthened its important role in the supply chain persification strategy of multinational corporations. 2024 will be the year for foreign investors to seize opportunities and implement high-tech foreign direct investment (FDI) projects in Vietnam.

Nguyen Bich Lam, former General Director of the General Statistics Office has granted an interview to Vietnam News Agency on the picture of FDI attraction and solutions to improve capacity and motivation to promote economic growth in the coming time.

The expert said in the first two months of the year, registered FDI reached 4.29 billion USD, up 38.6% compared to the same period in 2023. The amount of FDI disbursement reached 2.8 billion USD, an increase of 9.8% year on year.

Lam acknowledged that in the context of uncertainties and fierce strategic competition, the fragmented world economy has reduced and reshaped international investment flows, however, the country is still an attractive market for foreign investors, because its economy has recovered and developed in a relatively stable fashion.

Former General Director of the General Statistics Office Nguyen Bich Lam. Photo :VNA

PwC's "World in 2050" study has stated that Vietnam will achieve the second highest annual GDP growth rate worldwide and GDP will grow by an average of 5.3% per year over the 36-year period from 2014-2050. This important macroeconomic indicator is a testament to the success of the Government's management in recovering and maintaining the stable development of the economy.

He said foreign investors praised Vietnam's integration with the world's green development trend with a strong commitment to implement the provisions of COP 26. Along with that, the government has issued policies to encourage foreign investors to invest in projects using advanced technology, clean, environmentally friendly technology, with modern management methods that actively contribute to the production chain and global supply.

Lam cited that Vietnam's economy has deeply and widely integrated into the region and the world. Vietnam has also signed and implemented many free trade agreements with more than 60 partners covering all continents. In terms of market access liberalisation, according to the World Trade Organization (WTO), Vietnam is on par with Singapore, the most developed country in Southeast Asia.

Besides, Vietnam has relaxed regulations on foreign ownership in listed companies, easing the burden on investors. Since 2015, the government has allowed the relaxation of foreign ownership in listed companies by up to 100% in some cases. It also allows unlimited foreign investment in government bonds, he added.

In addition, Vietnam has a particularly favorable geographical position, a gateway for international trade in goods by sea. Increasingly synchronous infrastructure and technology are also advantages that make Vietnam attractive to foreign investors.

With the foreign policy of independence, self-reliance, persification and multilateralisation, Vietnam is working to be a reliable partner and responsible member of the international community. With a flexible foreign policy, Vietnam is a comprehensive strategic partner or strategic partner of all five permanent members of the UN Security Council. On March 7, 2024, Australia became Vietnam's seventh comprehensive strategic partner. Vietnam's position has been elevated, becoming a regional political-economic-security center. The country is now a partner of the international economic and political communities and a connected economy in a fragmented world - an advantage that only a very few countries have.

The upgrading of the comprehensive strategic partnership with the US and Japan, with a focus on cooperation in trade, investment, science and technology, is an important premise for economic development. Especially, foreign investment in high technology and export represents an opportunity to create a breakthrough in attracting FDI inflows in 2022, he mentioned.

With the increasingly strengthened role of the economy in the supply chain persification strategy of multinational corporations, Vietnam's economic growth is expected to recover more positively this year. A stable socio-political foundation is a core and important factor in Vietnam's prospect of creating a breakthrough in FDI attraction in 2024 and beyond, he expressed.

Recently, global credit rating agency Fitch Ratings has upgraded Vietnam's sovereign credit rating to BB+ with a stable outlook. With the achievements, advantages and position of the economy, 2024 is expected to be a breakthrough year in FDI attraction of the country./