Vietnam’s Global Investment Appeal Remains Strong

Vietnam among top 10 FDI destinations

According to data from the Foreign Investment Agency, Ministry of Planning and Investment, as of January 20, 2024, the total newly registered, adjusted, and contributed capital, as well as capital for purchasing shares and contributing capital from foreign investors, reached over $2.36 billion, an increase of 40.2% compared to the same period in 2023. Along with the positive trend of registered capital, disbursed capital is also very promising with a 9.6% increase compared to January 2023, where foreign investors disbursed $1.48 billion.

As of January 20, 2024, the country has 39,377 valid projects with a total registered capital of nearly $471.9 billion. The accumulated implemented capital of foreign-invested projects is estimated to reach nearly $298.66 billion, accounting for about 63.3% of the total registered capital still in effect.

To enhance foreign investment attraction, the Ministry of Planning and Investment has reviewed and adjusted policies that are suitable to global investment trends, with special attention to industries and sectors that have the potential to contribute to the greening of the economy, energy transition, green growth, digital transformation, etc.

Foreign businesses highly appreciate the investment and business environment in Vietnam. According to the EuroCham Whitebook 2024, the business environment in Vietnam has been significantly improved, and Vietnam remains highly attractive for global investment.

63% of surveyed businesses ranked Vietnam in the top 10 FDI destinations. 31% consider Vietnam as one of their top 3 investment targets, with 16% considering Vietnam as the best investment destination. More than half of the surveyed businesses have plans to increase their direct foreign investment in Vietnam by the end of this year.

Gabor Fluit, Chairman of EuroCham, commented that despite the complexity of the global economy, the Vietnamese economy still demonstrates resilience and flexibility. An important sign of this is the increased investment of Europe in Vietnam. Specifically, Nestle Vietnam has recently announced an additional investment of $100 million. “This underscores Europe’s confidence in Vietnam,” affirmed Gabor Fluit.

Foreign businesses looking at Vietnam

Luigi Santoro, General Director of Ariston Vietnam, shared: “We are very interested in investing and doing business in Vietnam. Our investments here are long-term and part of our key business strategy. We believe that foreign businesses are looking at Vietnam because it is an attractive and promising investment destination.”

According to Luigi Santoro, Vietnam is an attractive market due to its favorable investment environment, good infrastructure, stable policies, abundant labor force, and improving living standards. Vietnamese people are increasingly interested in high-quality products and famous brands.

“In the short term, we continue with the plans we started a few years ago and continue to invest in the medium and long term to achieve sustainable business goals in Vietnam,” said Luigi Santoro.
A recent survey by the Japan External Trade Organization (JETRO) shows that there are currently over 2,000 Japanese companies investing and doing business in Vietnam, the largest number in ASEAN countries. Japanese businesses still highly regard the investment and business environment in Vietnam, with political and social stability and a rich labor force.
Regarding the expected business profit in 2024 compared to 2023, according to the JETRO survey, 50.4% of Japanese companies believe it will improve, and 56.7% said they will expand their business in Vietnam.
Takeo Nakajima, Representative Chief in Hanoi of JETRO, has high regard for the investment environment and cooperation potential between Japanese and Vietnamese businesses. In the survey of parent companies in Japan, Japanese businesses still consider Vietnam as one of the attractive markets and the second most potential market (after the United States).
According to the JETRO representative, Vietnam plays an important role in the global supply chain of Japanese businesses, especially in the shift of production from low-value-added products to high-value-added products. Japanese businesses tend to focus more on investing in research and development of new products in Vietnam.