AsemconnectVietnam - In the first month of 2024, foreign direct investment (FDI) into Vietnam increased sharply. Capital quality is increasingly improving, many large economic corporations in the world continue to have long-term investment plans in Vietnam.

FDI capital increased sharply, project quality improved
In January of 2024, total foreign investment capital reached more than 2.36 billion USD, an increase of 40.2% over the same period of 2023, of which newly registered investment capital increased sharply. There have been 190 new projects granted Investment Registration Certificates, an increase of 24.2% over the same period last year. The total registered capital reached more than 2 billion USD, an increase of 66.9% over the same period last year. The increase in the number of projects, especially large-scale projects (more than 600 million USD), was one of the main factors driving the sharp increase in foreign investment capital. At the same time, disbursed capital was also very positive, reaching 1.48 billion USD, up by 9.6% over the same period last year.
Facing developments in investment trends, according to experts, Vietnam is considered an attractive and safe destination, so there is a wave of investment in Vietnam with large projects in the fields of technology and electronics. Notably, the quality of investment projects has improved significantly. The majority of projects are concentrated in the processing and manufacturing industry (accounting for 64.2%). There are many large-scale projects using high technology in the fields of electronics, semiconductor production, supporting industries, advanced technology applications, etc. This is a very positive point, showing that Vietnam's investment environment is still really attractive to international investors.
According to the Ministry of Planning and Investment, recently, many businesses in the semiconductor industry, high-tech industry, renewable energy, etc. have come to explore investment opportunities in Vietnam. Among them, the highlights were: Nvidia (USA) committed to making Vietnam the Group's second homeland; Hana Micron (Korea) inaugurated phase 2 and increased total investment in Vietnam to 1 billion USD. LG Innotech (Hai Phong) has invested in expanding the project by an additional 1 billion USD in the field of manufacturing electronic products. These promise to be projects that promote economic restructuring, creating new growth engines for Vietnam in the coming period.
Assessing Vietnam's business environment, Mr. Takeo Nakajima, Chief Representative of the Japan External Trade Organization (JETRO) in Vietnam, said that Vietnam's business environment has many promising expectations and growth potentials. Vietnam is still one of the attractive markets with much potential for Japanese parent companies. JETRO's survey results on the business environment just announced in January of 2024 also showed that, in the next 1 - 2 years, the proportion of Japanese enterprises saying they will expand business in Vietnam is 56.7 %. These are important "bright doors" for the prospect of attracting FDI in 2024.
Along with that, the European Business Association in Vietnam (EuroCham) assessed that in the fourth quarter of 2023, Vietnam's investment hot spot position has increased significantly. 62% of surveyed businesses ranked Vietnam as one of the top 10 global investment destinations. The outlook for the first quarter of 2024 is also very positive with 29% of businesses rating their prospects as "excellent" or "good". “The confidence of the foreign business community in Vietnam is increasing, new data for 2023 further reinforces this information. Last year, foreign direct investment reached 36.61 billion USD, an increase of 32.1% compared to 2022. This is clear evidence of growing confidence in the Vietnamese economy,” EuroCham President Gabor Fluit affirmed.
However, in the new context, experts recommend that Vietnam needs to accelerate infrastructure development to attract maximum high-quality FDI capital flow; build infrastructure to meet the needs of high-tech investors, further improving administrative procedures, because these are factors that experts believe will help improve the quality of FDI capital in Vietnam. Especially in 2024, when the global minimum tax officially takes effect, tax incentives are no longer the leading tool to attract FDI capital. Therefore, Vietnam needs to make more efforts to improve the business investment environment and overall support policies.
To increase FDI attraction, in the coming time, the Ministry of Planning and Investment will continue to advise and develop breakthrough plans and solutions to attract FDI effectively and sustainably, becoming a channel mobilize important capital for the economy, promoting recovery and development in the new situation; promoting external resources, creative spirit, combining strength and intelligence to proactively adapt, promptly seize opportunities, improve the effectiveness of foreign investment cooperation, contributing to making Vietnam a potential, safe and attractive investment destination for foreign investors.
CK
Source: VITIC/haiquanonline.com.vn