International experts shared insightful opinions at the “Fitch on Vietnam 2024” conference, hosted by Fitch Ratings, a renowned credit rating organization, on August 20 in Ho Chi Minh City.
According to statistics from the Foreign Investment Agency under the Ministry of Planning and Investment, as of July 20, foreign investment registered in Vietnam surpassed $18 billion, marking a 10.9% increase compared to the same period in 2023. Moreover, disbursed capital reached over $12.55 billion, reflecting an 8.4% year-on-year rise.
Notably, both registered and realized FDI in the first seven months maintained a positive growth trajectory. New FDI registration neared $10.8 billion, surging by 35.6%, while adjusted registered FDI amounted to nearly $5 billion, a 19.4% increase.
Sagarika Chandra, Director of Asia-Pacific Sovereign Ratings at Fitch Ratings, shared her insights on Vietnam’s economic outlook. She attributed the positive FDI trends to Vietnam’s active engagement in multiple Free Trade Agreements (FTAs). The country has successfully forged FTAs with all significant global economic partners, including the US, Russia, Japan, China, and the EU. Based on these agreements and Vietnam’s favorable conditions, Fitch Ratings predicts a sustained growth trajectory for FDI in the remaining months of 2024, potentially reaching or even surpassing last year’s levels.
Michele Wee, CEO of Standard Chartered Vietnam, elaborated on the advantages that make Vietnam an attractive FDI destination. She highlighted Vietnam’s progressive free trade agreements, competitive transportation costs, and strong sea, air, and maritime connections. Additionally, Vietnam is actively embracing digital transformation, the green transition, and the Fourth Industrial Revolution, creating a dynamic and innovative business environment.
The international experts attributed the growth in FDI to foreign investors’ confidence in Vietnam’s stable macroeconomic policies and its increasingly conducive and secure investment environment. They also acknowledged the effective implementation of fiscal and monetary policies to support businesses, along with the government’s consistent support for the business community’s stability and development.
International experts engage in insightful discussions at the “Fitch on Vietnam 2024” conference in Ho Chi Minh City. Photo: Minh Thao |
Fitch Ratings recently upgraded Vietnam’s credit rating to BB+ with a stable outlook, underscoring the country’s positive economic prospects and its appeal as an FDI destination.
In a sideline interview, Sagarika Chandra emphasized the influx of investments in technology and electronics, along with Vietnam’s potential to develop its semiconductor industry. She suggested that to attract and retain foreign investors, Vietnam should strive for a highly competitive business environment, aggressively implementing programs to enhance the business climate, and simplifying administrative procedures and business conditions. This would reduce procedural burdens and compliance risks, making Vietnam even more attractive to foreign investors.
“In the context of intense global competition to attract major corporations and integrate into global supply chains, Vietnam should also focus on enhancing its workforce, particularly in the realm of high-tech and green economy sectors, as these are areas of keen interest to foreign investors,” she added.
Foreign direct investment is poised to remain a bright spot in the final months of 2024, significantly contributing to the recovery of Vietnam’s economic growth trajectory. The surge in foreign investment not only generates employment opportunities but also facilitates technology transfer and enhances the competitiveness of domestic enterprises.
Minh Thao
Vietnam’s economy predicted to have a rapid boost in the early months, as various indicators skyrocket.
These statistics indicate that Vietnam’s economic prospects in 2024 are quite positive.
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