Almost 40 percent of enterprises plan to expand supply chains in Vietnam

06:00 | 13/10/2020 EVFTA

(VEN) - With its existing competitive advantages and strong reforms of the investment environment, as well as effective Covid-19 prevention and control, the international community is hailing Vietnam as an attractive and safe investment destination.

almost 40 percent of enterprises plan to expand supply chains in vietnam

Vietnam remains attractive to foreign investors

According to the Foreign Investment Agency under the Ministry of Planning and Investment, the total amount of foreign investment poured into Vietnam this year to September 20 reached US$21.2 billion, equivalent to 81.1 percent of that in the same period last year. Of the sum, US$13.76 billion were disbursed, equal to 96.8 percent of last year’s amount during the same period. Given a sharp decline in global investment due to the impact of the Covid-19 pandemic, the result is acceptable.

Vietnam has become attractive to foreign investors thanks to political stability, rapid and sustainable economic growth, abundant human resources and its favorable geographic location. In addition, the country is a partner in numerous free trade agreements, especially the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Effective prevention and control of the Covid-19 pandemic have also made Vietnam more and more attractive.

Pointing to a survey conducted recently by the Standard Chartered Bank, Nirukt Sapru, CEO for Vietnam and ASEAN and South Asia Cluster Markets at Standard Chartered Bank, said 38 percent of surveyed enterprises are planning to expand their supply chains in Vietnam, the highest rate among ASEAN countries.

Sapru said that with strong fundamental factors such as a young, dynamic and tech-savvy population, a growing domestic market, expanding middle-class and open economy, Vietnam continues to offer attractive investment opportunities. Many multinational corporations have been interested in promoting business and investment activities in

Vietnam to take advantage of its geographic proximity and connections with ASEAN. The Covid-19 pandemic will take a while but cannot prevent investors from finding opportunities and making plans to maintain and expand operations in Vietnam, Sapru said.

Special FDI working group

To attract high-quality FDI projects and ensure long-term investments, Vietnam should focus on developing a transparent and friendly investment environment with good infrastructure and logistics services, as well as improving the quality of skilled workers and enhancing governance, said Nguyen Minh Cuong, chief economist of the Asian Development Bank (ADB) in Vietnam.

Vietnam will select FDI projects matching all criteria on quality, effectiveness, high-tech and environmental protection. Projects applying advanced technologies and modern governance, creating high added value, providing links with manufacturing chains, and training human resources will be particularly welcome.

To receive new FDI flows, Vietnam has been cleaning up land and factory pollution and building necessary infrastructure. The country is also accelerating the training of human resources, welcoming experts and high-skilled employees to Vietnam, strengthening the development of support industries and devising special incentives for large-scale and high-quality projects.

Vietnam has also established a special working group to attract the post-pandemic wave of shifting production to the country.

Since the government established a special working group on FDI attraction, it has worked with major technology corporations on quality, high-tech and innovative projects with capital of US$500 million and over.

Thu Phuong