Việt Nam outlook positive for attracting investment

Don Lam, CEO and Founding Partner of VinaCapital Group, delivers the opening remarks at its 2023 Investor Conference in HCM City. — Photo courtesy of VinaCapital

HCM CITY — Green energy, semiconductors, healthcare and high-tech are among the sectors in which Việt Nam attracts the most interest from foreign investors, according to VinaCapital Group.

Don Lam, its CEO and founding partner, highlighted these sectors at a press conference held on the sidelines of the 2023 Investor Conference in HCM City.

He noted that the recent elevation of US-Việt Nam relations to a Comprehensive Strategic Partnership has brought many US semiconductor companies to Việt Nam to explore the market.

Furthermore, VinaCapital recently hosted a delegation of 30 Taiwanese firms, showcasing the growing interest in investment opportunities in the Vietnamese market.

Andy Ho, VinaCapital’s chief investment officer, emphasised that foreign direct investment in Việt Nam is expected to surge to an estimated US$20-25 billion this year.

He downplayed concerns about the global corporate minimum tax affecting FDI inflows, stating that tax incentives are not the primary attraction for establishing operations in Việt Nam.

The Vietnamese GDP is projected to grow at 4.7 per cent this year and accelerate to 6.5 per cent in 2024.

Ho also highlighted factors supporting Việt Nam’s long-term growth, including a positive demographic structure, an expanding middle class, and an enhancement in the complexity of "Made in Vietnam" products, attracting investment from major companies such as Samsung, Apple, and Intel.

Regarding the outlook of the Vietnamese securities market, Nguyễn Hoài Thu, managing director and head of investment at VinaCapital, noted that Vietnam's stock market currently offers an attractive valuations compared to its regional counterparts.

She predicted that earnings of listed companies, which hit a low in the fourth quarter of the previous year, would gradually recover and are expected to average 25 per cent in 2024.

The 2023 Investor Conference has drawn over 150 guests from around the world, managing assets exceeding $1 trillion. The event, spanning two days, coincides with VinaCapital’s 20th anniversary and features a diverse array of speakers representing various industries and sectors.

Lam expressed enthusiasm for welcoming investors to Việt Nam, particularly in this significant year for VinaCapital.

The strong turnout indicates Vietnam’s enduring appeal for investment opportunities, and the conference aims to shed light on the exciting prospects in the market today.

Key topics to be discussed at the conference include economic and stock market outlooks, FDI trends, logistics infrastructure, updates on VinaCapital’s funds, investment opportunities in renewable energy, the evolution of ESG investing in Việt Nam, growth capital and Việt Nam’s emerging economy, domestic consumption resilience, real estate updates and opportunities, and VinaCapital Foundation initiatives.

The sessions will feature senior executives from VinaCapital and executives from various companies.

The US ambassador to Vietnam, Marc Knapper, spoke about the recent signing of the Vietnam-US Comprehensive Strategic Partnership and the potential economic co-operation and opportunities it presents for both countries.

Lam said: “Beyond our traditional funds, today VinaCapital is focused on sustainability, the green transition, and reinforcing the economy’s solid foundation for robust and inclusive growth.

“Our clean and renewable energy projects, our newly launched VinaCarbon Climate Impact Fund, our co-founding of the Institute for Circular Economy Development, and EDGE Champion certification from the IFC for our real estate projects are just a few examples of how VinaCapital is continuing to play a leading role in Vietnam’s ongoing sustainable economic development.”

VinaCapital initiated its first investor conference in 2005, serving as a platform to introduce Việt Nam to foreign investors and promote investment opportunities in the country.

These conferences allow current and prospective investors to witness Vietnam's growth first-hand and gain unique insights from experts.