Vietnam to attract US$40 billion of FDI in 2024

At the recent regular Government press conference in June 2024, Deputy Minister of Planning and Investment Tran Quoc Phuong said that in the second half of 2024, Vietnam’s FDI attraction in 2024 could reach US$39 to 40 billion, higher than the 2023 figure.

Vietnam attracted nearly US$15.2 billion of FDI in the first half of 2024

The above forecast is based on the fact that foreign investors’ confidence in Vietnamese Government’s policies and the country’s development in the future continue to be strengthened. In their eyes, Vietnam remains an important investment destination in the medium and long terms.

According to MPI’s statistics, Vietnam attracted nearly US$15.2 billion of FDI in the first half of 2024, a year-on-year increase of 13.1 percent. Notably, the disbursed FDI in the reviewed period hit about US$10.84 billion, a rise of 8.2 percent year-on-year. The increase in both registered and disbursed FDI capital flows will further boost domestic business activities.

The MPI also reported that the quality of investment projects has improved considerably as seen in the new investments in and expansion of large projects in the fields of semiconductors, energy, electronics, and products with high added values.

Thanks to the above results, representatives from the MPI said foreign investors continue to view Vietnam as an important investment destination in the medium and long terms, amid the ongoing global supply chain restructuring.

Vietnam is attracting foreign investment in renewable energy development

Three factors that help Vietnam attract FDI flows

The world economic outlook in 2024 is forecast to have a weak recovery and will face many risks and major challenges due to the post COVID-19 pandemic complicated developments. Furthermore, geopolitical instability and competition between major countries continue to cause changes and impacts on the global economy in the medium and long term. New standards and even interventions by some governments to guide investment activities can affect the shift of FDI.

However, many domestic and foreign financial institutions believe that Vietnam’s FDI attraction this year will maintain a positive pace due to three factors: Vietnam’s important and increasingly reinforced role in the supply chain diversification strategy of multinationals; its more positive economic growth recovery this year; and finally the country’s steady macroeconomic growth.

In particular, Vietnam also holds potential for investing in many pioneering industries, and the renewable energy sector is grabbing investors’ interest, with a focus on clean energy sources, such as solar and wind power to enhance the electricity supply sustainability.

However, to take full advantage of investment attraction opportunities, the MPI supposed that Vietnam must actively solve existing bottlenecks relating to the quality of skilled human resources, local power shortages in some localities where electronic industrial projects are implemented; and simplification of procedures on granting investment registration certificates, such as construction, fire prevention and fighting permits, and more.