Vietnam"s FDI forecast to remain strong through 2024

Vietnam attracts more than 2.36 billion USD in foreign direct investment (FDI) as of January 20 (Photo: VNA)

The year 2024 continues to look good for Vietnam’s foreign investment attraction, as right from the beginning of this year, the country has attracted a host of projects.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, Vietnam had attracted more than 2.36 billion USD in foreign direct investment (FDI) as of January 20, an increase of 40.2% over the same period in 2023.

As many as 190 new projects were granted investment registration certificates, a year-on-year rise of 24.2%, with a total registered capital of more than 2 billion USD, 66.9% higher than that of the same period last year.

In addition, 75 projects registered to adjust investment capital with more than 235.4 million USD added, down 15.7% and 23.1% respectively.

The month also saw foreign investors contribute more than 116.5 million USD to make 174 share purchases, down 14.7% and 33.1% respectively over the same period last year.

Specifically, on January 13, authorities of the central province of Nghe An granted investment licences to five foreign-invested projects, with a total capital of 390 million USD. Notably among them were a 120-million-USD project of Taiwan (China)’s Radiant Opto-Electronics Corporation and a 115-million-USD project of Hong Kong (China)’s Everwin Precision. In late October 2023, Everwin Precision also began work on a 200-million-USD project at the Vietnam-Singapore Industrial Park (VSIP) in the central locality.

Earlier, the northern province of Hai Duong handed over investment certificates to 27 projects, with a total capital of more than 1.5 billion USD. Besides several domestic projects, there are large-scale FDI projects, such as a 270-million-USD stationery factory invested by Deli Vietnam Office Technology Co., Ltd. There was also a project worth 260 million USD by Biel Crystal Vietnam Manufacturing Limited, and a Boviet Hai Duong solar photovoltaic cell factory worth 120 million USD.

Among nine projects granted investment certificates in early January in the southern province of Dong Nai, there were four foreign-invested, totalling 156.4 million USD. Meanwhile, 217 million USD were added to four existing FDI projects.

Illustrative image (Photo: VNA)

Speaking at a recent Government meeting with localities, Deputy Prime Minister Le Minh Khai stressed that Vietnam remains an attractive destination to foreign investors, given the fact that up to 36.6 billion USD was registered, and 23.2 billion USD was disbursed last year. These are the highest ever figures.

Michael Kokalari, Director of VinaCapital's Macroeconomic Analysis and Market Research Department, assessed that Vietnam's attraction of foreign investment in 2024 will continue to be very positive.

He shared that his firm has received a lot of information about Japanese groups looking for opportunities to cooperate with domestic units, such as VinaCapital, to pour capital into Vietnam's real estate sector. Other fields that promise to attract large capital flows may be manufacturing and retail, he said.

Speaking at an event to release the Business Confidence Index (BCI) by the European Chamber of Commerce (EuroCham) in Vietnam, its Chairman Gabor Fluit said that 31% of EuroCham members now rank Vietnam among their top three global investment destinations.

He stressed the need for the country to improve problems related to administrative burden and ineffectiveness of the apparatus.

Experts stressed the need for Vietnam to early research and issue mechanisms to better support investors in the context of the global minimum tax rate.

Hoang Van Cuong, member of the National Assembly's Finance and Budget Committee, said that it is important to not only attract investors, but also "accompany them".

"To do that, we need strong institutional reforms, creating a legal environment and creating opportunities, not just dismantling difficulties," he said.