Vietnam attractive to foreign investors despite global uncertainties

A FDI factory in Giang Dien industrial park in Dong Nai province. (Photo: VNA)

Hanoi - Despite global uncertainties, Vietnam remains attractive to foreign investors, drawing 20.21 billion USD by the end of September, up 7.7 per cent year on year.

Of the figure, 15.9 billion USD was disbursed, marking a 2.2 per cent increase year-on-year.

According to its latest Vietnam Economic Update, the World Bank noted that stable commitments and disbursement of foreign investment reflect the interest of foreign investors in business opportunities in Vietnam despite global uncertainties.

In particular, traditional investors such as Singapore, China and Japan are increasingly reaffirming their trust and determination to maintain or expand their operations in Vietnam. They are working to realise strategic goals of making Vietnam a manufacturing hub for high-quality products to join the global production and supply chains with fierce competitiveness.

In the southern province of Dong Nai, over 120 foreign-invested projects worth nearly 940 million USD were recorded in the first nine months of this year, or nearly 134 per cent of the annual plan.

During the period, Dong Nai licensed nearly 50 new FDI projects, 17 of them from China with total capital of around 150 million USD. Most of them involved in renting factories for production and trade in apparel, electronics and household appliances.

Forecasts indicated that FDI attraction and disbursement will continue picking up in the coming months, which will be an important additional source of support to make up for limitations in other economic sectors.

Don Lam, CEO and Founding Partner of VinaCapital Group, said preliminary surveys showed that foreign investors are particularly interested in the green transformation and the potential of the consumption sector in Vietnam, especially in the semiconductor and chip industry. This presents an opportunity for Vietnam to attract more long-term capital inflows, contributing to sustainable economic growth.

Apart from general measures to stabilise macroeconomic conditions, improve infrastructure and workforce, Vietnam is focusing on building and developing an ecosystem for sci-tech, innovation, and entrepreneurship that is aligned with the digital business environment. Furthermore, there will be ongoing efforts to simplify investment procedures, making it easier for businesses to start and grow, said Minister of Planning and Investment Nguyen Chi Dung.

Vietnam mitigates global minimum tax issues for foreign investors Vietnamese tax officials are strategising resource allocation and customised support mechanisms to alleviate the consequences of the global minimum tax (GMT) on foreign enterprises, ensuring an appealing investment climate.

Localities push each other to lure in foreign investment The year so far has witnessed many rising stars in attracting foreign capital across the country.

Foreign investors flock to Vietnam's real estate market Vietnam's real estate sector has emerged as a highly desirable destination for international investors, ranking second only to the manufacturing and processing industry, with over 1,100 projects amounting to $66.4 billion of foreign investment.

Vietnamese banks prove attractive to foreign investors A number of Vietnamese banks are grabbing interest of foreign investors who are major banks or financial groups.

Foreign investors amplify stake in Saigonbank In a recent trading surge, foreign investors have acquired a significant proportion of Saigonbank's (SGB) shares, boosting their overall stake to 14.8 per cent.