Vietnam may attract 30 billion USD in FDI this year: experts

At an assembly workshop of Ford Vietnam CO., Ltd in Hai Duong province.(Photo: VNA)

Hanoi – Vietnam may attract about 30 billion USD in foreign direct investment (FDI) in 2021, posting a year-on-year rise of 2 percent, economists forecast, pointing to positive signs in FDI attraction in the first eight months of 2021 despite the complexities of COVID-19.

According to the Ministry of Planning and Investment, foreign investors channelled 19.12 billion USD into the country in January-August, equalling nearly 98 percent of the same period last year, with several multi-billion USD projects.

Singaporean investors poured over 3.1 billion USD into the Long An LNG power plants No 1 and 2 while the O Mon 2 thermal power plant in Can Tho city invested by Japan received 1.31 billion USD in the period. The LG Display project in Hai Phong city has received additional investment twice this year, with 750 million USD in February and 1.4 billion USD in August.

Despite social distancing measures to curb the spread of COVID-19, the country’s FDI inflow in the first eight months only saw a slight decline of 2.1 percent against the same period last year, said Nguyen Van Toan, deputy head of the Vietnam’s Association of Foreign Invested Enterprises.

Of note, new registered capital surged 16.3 percent and disbursement of FDI capital hit 11.58 billion USD, up 2 percent.

Speaking with Cong Thuong (Industry and Trade) newspaper, Phan Huu Thang, former head of the Vietnam Trade Promotion Agency (Vietrade) at the Ministry of Industry and Trade, voiced his belief that FDI inflow into Vietnam may still reach about 30 billion USD this year.

To address current difficulties facing foreign investors when they want to enter the country to study investment possibilities or to implement investment projects, the Government and relevant ministries and agencies are urged to consider reducing quarantine period for those who have been fully vaccinated and hold a negative COVID-19 testing certificate.

In the first eight months of this year, , Vietnam attracted investors from 92 countries and territories. Singapore was the leading investor with registered capital exceeding 6.2 billion USD, or 32.5 percent of the total FDI inflow.