Vietnam's Direct Investment Abroad & in Myanmar debuts for first time

Vietnam's Direct Investment Abroad & in Myanmar debuts for first time

On May 31, International Investment Study Institute Co., Ltd. (ISC) launched the new book, which is a remaking of the first book providing an overview of outward foreign direct investment by Vietnamese businesses.

The book focuses on analysing Vietnam's current direct investment situation, both in overview form and focusing on particular countries and territories. It is based on an in-depth analysis of the production and business results of many selected enterprises, representing each specific industrial sector, as well as each region.

The book also analyses the legal and policy systems of the host countries, as well as those in Vietnam that target outbound investment and international investment practices, to highlight the opportunities and the difficulties for Vietnamese enterprises when investing abroad.

The book offers recommendations on improving the current laws and policies on Vietnam's outbound investment, providing practical lessons learned from Vietnamese enterprises, and shows case studies from foreign experts about their experience managing and operating their investments overseas.

According to the editorial board, the book is written with an acknowledgement that the data relating to outward foreign direct investment globally for 2022 and has yet to be officially published.

As the data relating to Vietnam’s direct investment abroad is incomplete and not yet synchronised, the authors had to collect the figures from many sources, such as the World Bank, the International Monetary Fund (IMF), the United Nations Conference on Trade and Development (UNCTAD), ASEAN, the General Statistics Office of Vietnam, the Foreign Investment Agency under the Ministry of Planning and Investment, and a field survey to Myanmar.

As stated by the editorial team, after the publication of the Report on Foreign Direct Investment (FDI) in Vietnam 2021, the ISC concentrated on producing an in-depth study based on the clear consciousness that fostering FDI and Vietnam's direct investment abroad is vital as the country’s becomes increasingly integrated and implements many free trade agreements. What is more, Vietnam’s economic landscape and management capabilities have been improved, especially in comparison with those of 35 years ago.

Attracting FDI and investing overseas to promote socioeconomic growth is a common aim of countries all around the world, especially developing nations with specific advantages. Vietnamese firms have been conducting investment overseas for many years and witnessed great achievements, however, there are still issues that need to be solved.

Dr. Phan Huu Thang, chairman of the editorial team said, “The re-evaluation of Vietnamese overseas direct investment activities, achievements, and unsolved problems in an objective and scientific manner has become a must for all state management agencies and the Vietnamese business community. The book, published by ISC together with the Vietnam-Myanmar Friendship Association, aims to solve all these urgent requirements.”

In the opinion of experts at the launch ceremony, looking back at Vietnam's direct investment journey overseas can provide policymakers and businesses with a view of the effects of deeply integrating into the regional and global economy. Nevertheless, due to the economic limitations, investors have to move in line with the level of development of the national economy, as well as the country’s international relations and its own status in the international arena during each period of time.

However, the experts said that there is inevitably a lack of synchronisation and incomplete legal documents for Vietnam's direct investment abroad and the state management of investment activities overseas, which has slowed down the development process and reduced efficiency.

Therefore, although there have been initial successes, with a number of Vietnamese corporations that have built their brands abroad and brought profits back to the country, there remain certain obstacles.

“What led to the initial successes and failures of Vietnam’s direct investment activities abroad? What can be done to promote the benefits and overcome the shortcomings? What is the most effective way to maintain growth momentum and enhance sustainable integration for both Vietnam and the country receiving the investments? How can Vietnam be promoted as a developed country with significant economic and technological potential in the countries and territories where it is conducting investments? The book seeks to provide insights into all the aforementioned questions,” Thang added.

The book combines four chapters:

Chapter I: The foreign investment activities of countries around the world

Chapter II: Vietnam's outbound direct investment

Chapter III: Vietnam's Investment in Myanmar - trends and prospects

Chapter IV: Orientations and solutions to promote Vietnam's overseas direct investment in the coming period

Building on cooperation towards common prosperity With open and transparent attraction policies and a favourable, stable, and constantly improving business environment, Vietnam has gained many achievements in attracting foreign investment.

Quality and quantity advances sought The scale and quality of foreign-led projects in Vietnam have been fostered thanks to the promulgation of new policies to improve the investment environment.

PM orders enhancement of foreign investment attraction efficiency Prime Minister Pham Minh Chinh has signed a directive clarifying tasks and solutions to enhance the efficiency of foreign investment attraction in the new period.

The impressive changes in Vietnamese labour market The official passage of the Law on Foreign Investment in Vietnam in 1987 is considered a historic turning point that contributes to attracting an increasing number of foreign-led enterprises into Vietnam over the years. Multinational corporations opening new branches as well as newly established foreign-backed enterprises in many fields create great demand for domestic labour, generating jobs and improving livelihoods and quality of life for Vietnamese people.