Foreign investors highly rate Vietnam investment environment

The total registered FDI capital in Vietnam in 2023 reached US$36.61 billion, an increase of 32.1 percent compared to 2022

Abundant opportunities

According to the Ministry of Planning and Investment’s Foreign Investment Agency, in recent years, the number of new investment projects and newly registered FDI capital has increased significantly. The total registered FDI capital in Vietnam in 2023 reached US$36.61 billion, an increase of 32.1 percent compared to 2022. Of the total registered capital, newly registered capital reached nearly US$20.19 billion, an increase of 62.2 percent. The number of newly registered projects totaled 3,188, up 56.6 percent. Among them, the manufacturing and processing industry, which contributes significantly to the sustainable development of the economy, continues to lead with a total investment capital of over US$23.5 billion, accounting for 64.2 percent of the total registered investment capital and increasing by 39.9 percent compared to 2022.

This is a noteworthy result and demonstrates that Vietnam is creating a great attraction for foreign investors. Furusawa Yasuyuki, a member of the Board of Directors of AEON Group (Japan) and General Director of AEON Vietnam, stated that AEON had been studying the Vietnamese market since 2009 before opening its first shopping center in Vietnam in 2014. The investment environment in Vietnam sometimes undergoes changes, but overall, the potential and opportunities outweigh the challenges.

According to him, with its rapidly growing population, especially the middle class, Vietnam has a lot of economic development potential and a much higher growth rate than other Asian countries, including Japan. Given the opportunities and attractive investment factors, the AEON Vietnam General Director said he believes that many Japanese companies desire to invest in Vietnam.

Meanwhile, Choi Joo Ho, General Director of the Samsung Vietnam Complex, said he believes that nowadays global information technology companies are closely eying Vietnam as a key hub for mobile phones to understand Vietnam’s industrial policy changes. “The Vietnamese Government has implemented the promised support policies after Samsung’s investment. As a result, Samsung has continuously been provided with an excellent business environment,” he emphasized.

Vietnam has become a leading FDI attractor and achieved significant achievements in the field - photo: Can Dung

Prepared to welcome giant investors

Although Vietnam is highly appreciated by many FDI enterprises for its efforts to create an ideal investment destination, it is essential to recognize that competition among developing countries in attracting FDI is fierce and will continue to intensify.

According to economists, the prospects of attracting FDI depend on various factors. Firstly, it is the competitiveness of Vietnam’s investment environment. Secondly, it is the improvement of state management quality from the central to local levels regarding foreign investment. Thirdly, it is the growth and development of the domestic business community, particularly relying heavily on administrative reform, the improvement of the legal system, and enhancing the quality and efficiency of state management of foreign investment.

According to Deputy Minister of Planning and Investment Do Thanh Trung, foreign investment in Vietnam is slowing down as some economies are expected to apply a global minimum tax rate of 15 percent from 2024. The Deputy Minister evaluates that to enhance FDI attraction, especially high-quality capital, in the near future, Vietnam will build and develop an ecosystem of science, technology, innovation, with flexible and business-friendly management mechanisms suitable for the digital business environment.

Along with that, the country will develop a strong domestic business sector with sufficient capacity for international integration to enter joint ventures and cooperate with foreign investors, and focus on high technology, new technology, advanced technology, modern services, manufacturing industry, information technology, and financial services, among others.