Foreign inflows to Vietnam are expected to grow in 2022, once international commercial flights will be recovered.
|Nguyen Dinh Nam-Founder and CEO IPA Vietnam |
Numerous partners of IPA Vietnam are preparing for procedures such as vaccine inoculations, the booking of airplane tickets, and isolation policies in order to enter Vietnam to survey investment opportunities.
Among them, a South Korean investor already aims to develop an alcohol and beverage production plant with the total investment capital of $140 million. The project’s construction is expected to be implemented in the 2022-2024 period.
Besides this, an investment fund from Singapore is interested in contributing capital and purchasing stakes of commercial real estate, renewable energy, and technology in Vietnam, with a total investment capital sum of $500 million. Another project is an electronic manufacturing venture funded by an Indian investor, which is expected to be developed in the 2022-2023 period.
Furthermore, investors from Switzerland and Hong Kong are eager to conduct field surveys to invest in projects in garments and textiles and manufacturing, worth tens of millions of US dollars.
These investors want to develop their new initiatives next year. Thus, if international commercial flights start to recover in the first quarter, it will be an ideal condition for them to realise their plans on time because field surveys play a very important role in their decision-making.
To promote foreign capital attraction and restore supply chains and domestic production, it is necessary to organise specialised flights for foreign investors from key markets such as South Korea, Japan, Taiwan, China, Hong Kong, Singapore, and Thailand from the first quarter of 2022.
To create favourable conditions for pandemic control, foreign investors in Vietnam need to register their plans with the Vietnamese embassies and consulates in their countries, and also need guarantees from associations across Vietnam.
At localities, it is necessary to have a consistent isolation policy based on the general guidance of the government. If investors are allowed to enter the country and have a clear work plan and paperwork, localities need to create conditions for them to move, work, and survey in different locations.
These moves will accelerate the implementation of investment plans, leading to attracting more foreign capital.
With the political stability, an open market, and the initiative in international integration and competitive production and business expenditures, Vietnam is an ideal destination for many investors. Reopening international commercial flights is an important factor to gear up foreign inflows, along with the ability to restore the labour supply chain.
I predict that, in the first half of 2022, foreign investment will flow mostly in the form of capital contributions and stake purchases, as well as expansion of existing projects. From the second quarter of 2022, when most people have been vaccinated across the country and the conditions for entry are loosened, foreign capital attraction will become even more positive.