FDI attraction, consumption, tourism silver linings of Vietnam’s H2 economic growth

FDI attraction, consumption, tourism silver linings of Vietnam’s H2 economic growth, Illustrative image (Photo: VNA)

Hanoi - Foreign direct investment (FDI) attraction, consumption, and tourism are considered silver linings in Vietnam’s economic growth in the coming months of this year, insiders said.

According to the Ministry of Planning and Investment, by July 20, the total newly registered capital, adjusted and contributed by foreign investors had neared 16.24 billion USD, up 4.5 per cent over the same period in 2022.

Meanwhile, capital implemented by foreign-invested projects reached about 11.58 billion USD, increasing by 0.8 per cent from the same period last year.

Director of the ministry’s Foreign Investment Agency (FIA) Do Nhat Hoang said that after falling for six months, Vietnam’s FDI attraction increased in July thanks to the Government’s timely and flexible solutions to support businesses.

In July only, total registered capital was over 2.8 billion USD, increasing by 8.9 per cent, 41.9 per cent, and 85.7 per cent compared to that of June 2023, May 2023, and July 2022, respectively.

Hoang said that new investment capital and new projects increased sharply over the first months of this year.

Small- and middle-sized foreign investors continued to get interested and confident in Vietnam’s investment climate, he said.

Meanwhile, Vietnam’s tourism posted a strong recovery in July, attracting over 1 million foreign visitors, an increase of 6.5 per cent over the previous month.

In the first seven months of this year, Vietnam welcomed more than 6.6 million foreign visitors. The figure was 6.9 times higher than that of the same period last year.

Vu Tuan Anh, chairman of JCI Vietnam, said that the figures show Vietnam’s visible recovery in tourism.

Tourism also helped stimulate the growth of the transport and commerce sectors.

In the first seven months, the transport sector served over 2.6 billion passengers, marking a year-on-year increase of 15.8 per cent. Meanwhile, over 1.3 billion tonnes of goods were transported during the period, a year-on-year rise of 15.3 per cent.

According to the Ministry of Industry and Trade, in the first seven months, total retail sales of consumer goods and services increased by 10.4 per cent over the same period last year.

Economic expert Ngo Tri Long said that domestic consumption, public investment, and exports will continue to be key drivers for Vietnam’s economic growth in the coming months.

Dong Nai’s FDI attraction booming, nearly triple in Q1 Foreign direct investment in the southern province of Dong Nai surpassed 500 million USD in the first quarter this year, nearly tripling that in the same period last year, according to the management board of the provincial industrial parks.

Hanoi tops country in FDI attraction in first four months Hanoi led Vietnam in attracting foreign direct investment (FDI) in the first four months of this year, securing more than 1.7 billion USD in capital during the period, according to the Ministry of Planning and Investment.

Localities report downgrade in FDI attraction amid land shortages Localities such as Dong Nai and Thanh Hoa are struggling to provide enough available land for some of the biggest manufacturers, currently relying only on the interest of smaller-scale ventures.