Everyone is preparing for a big shift in foreign companies due to the commercial war between the US and China. Vietnam is considered Asia’s bright spot
Vietnam – a safe and attractive investment destination for foreigners
With successful efforts in combating Covid-19, Vietnam has been acknowledged by the foreign investors’ community as a safe and attractive investment destination.
With recent achievements in the combat against Covid-19, Vietnam has been recognized by the foreign investors’ community as a safe and attractive investment destination, cited VIR.
Deputy Minister of Planning and Investment Vu Dai Thang said that due to coronavirus, the foreign direct investment flows globally can decline by 40% in 2020. However, the FDI attraction in Vietnam in the first half of the year remained positive.
In particular, during the period, the total foreign investment capital reached USD 15.67 billion, down 15.1% year-on-year. The newly-registered and added capital was up 13.8% and 26.8% to reach USD 8.43 billion and USD 3.72 billion respectively.
“These are positive signs, showing the confidence of foreign investors in the business environment in Vietnam,” Thang said.
|During 6 months, foreign investment capital reached USD 15.67 billion (Photo: Hanoi Moi)|
In the first 6 months of 2020, 98 countries and territories have invested in Vietnam. Singapore led with a total investment of USD 5.44 billion, accounting for 34.7% of the total investment in Vietnam. Thailand ranked second with a total investment of USD 1.58 billion, accounting for 10.1% of total investment. China ranked third with a total investment of USD 1.58 billion, accounting for 10.1% of total investment. Followed are Japan, Korea, Taiwan, reported by Financial Magazine.
Do Nhat Hoang, Head of the Foreign Investment Agency under the Ministry of Planning and Investment also attributed the rise in foreign investment in Vietnam to the efforts by businesses, drastic actions and timely support by the government.
Hoang hoped that after Vietnam resumes international air routes, more investors will come to Vietnam and the FDI flows will bounce back this year. The restructuring of investment has opened up opportunities for many countries, including Vietnam, said Hoang.
Vietnam has been considered a bright spot in ASEAN by investors thanks to its political stability, sustainable economic growth, abundant workforce, large market, increasing per capita income, intensive international integration, competitive incentives, plus its geographical location in the center of Southeast Asia.
|Vietnam has resumed business activities normally (Photo: Vietnam Law)|
Vietnam has also made efforts to improve its investment environment since the National Assembly ratified relevant laws that are expected to create positive impacts on the national economy. The Ministry of Planning and Investment has also proposed solutions related to investment promotion and incentives.
Besides, the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) are expected to open up a new period as European investors will benefit from protection mechanisms and exports to the EU will enjoy preferential tax incentives. It will be a good time for businesses from Vietnam and the EU to boost cooperation and investment.
Vietnam is home to over 32,000 projects worth USD 378 billion from 136 countries and territories. While countries in the world are still fighting against Covid-19, Vietnam has already resumed business activities normally and become one of the first nations to diversify the supply chains, said Envoy Okabe Daisuke from the Japanese Embassy in Vietnam. Foreign investors, therefore, are considering Vietnam a potential investment destination in the post-Covid-19 period.
A survey from the Japan External Trade Organization (JETRO) in February 2020 showed that over 63% of Japanese businesses in Vietnam plan to raise investment, the highest rate in ASEAN, informed Vietnam Plus.
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Vietnam’s investment environment received a lot of praise during the Vietnam-Japan online investment promotion conference.
After the first half of 2020, Vietnam has become a bright spot for many foreign investors to head to. There have been over 90 countries invested in Vietnam.