"Over $26 billion in FDI flowed into Vietnam in the first 11 months of 2021, despite Vietnam being heavily impacted by the Covid-19 pandemic, and this figure is projected to continue increasing by the end of the year."
Many localities with high FDI inflows are striving to support businesses through policies ranging from maintaining employment to minimizing disruptions in the supply chain of raw materials and goods. This also confirms that Vietnam remains an attractive investment environment for foreign investors.
In Vietnam, due to the impact of the Covid-19 pandemic, some factories temporarily suspended operations or reduced capacity. However, the number of foreign direct investment (FDI) projects exceeding US$50 million continued to grow strongly. In the first 11 months of this year, the Foreign Investment Agency granted new registered capital to 1.577 projects, worth over US$14 billion. In addition, 877 projects licensed in previous years adjusted their registered capital, increasing it by more than US$8 billion, a 26,7% increase compared to the same period last year.
Mr. Do Nhat Hoang, Director of the Foreign Investment Agency, stated that a positive sign is that investment projects in Vietnam are increasingly focusing on high added value: “I believe that investors will show even more interest in Vietnam. Currently, investors are very interested in the processing and manufacturing industries, and among the sectors attracting investors in Vietnam, the processing and manufacturing sector still accounts for a high percentage, and this proportion is increasing. We are aiming for industries with high added value, high spillover effects, and integrating Vietnamese businesses into supply chains and value chains – these are the investment flows into Vietnam.”
Despite the Covid-19 outbreak, technology infrastructure projects in several cities across the country, especially Da Nang, are being accelerated to build a "nest" to attract foreign investment in the smart city sector. In these final days of the year, the No. 2 Software Park in Hai Chau District, Da Nang, is bustling with teams of workers racing against time. Thanks to the consistent capabilities of the contractors, the 8-story ICT1 office building has been completed 8 months ahead of schedule, ensuring handover to tenants for office installation by December 31st, with operations beginning in February of next year.
Mr. Pham Truong Son, Head of the Management Board of the Da Nang High-Tech Park and Industrial Zone, stated: “We awarded the investment registration certificate to Fujikin Company of Japan, one of the companies in the capital shift supported by the Japanese Government, and this is part of attracting investment in the current period. We are applying several solutions such as organizing online investment promotion activities targeting the European, Japanese, and Korean markets.”
Currently, many localities are continuing to prepare land, creating the best conditions for investors to invest. At the same time, they are ready with high-quality human resources to meet investment needs; mechanisms, procedural reforms, preferential policies, maximizing the use of legal incentives; and support in resolving all difficulties. Some localities are focusing on attracting FDI in high technology, with electronics as a key sector.
According to VOV
