11:26 | 21/08/2014 Economy
(VEN) - In the first seven months of 2014, foreign direct investment (FDI) in Vietnam equaled just 80.1 percent of that in the same period last year. In the opinion of experts, however, there are many reasons to expect that FDI in Vietnam will increase in the time to come.
Vietnam remains an attractive destination to foreign investors
Professor, Dr. Nguyen Mai, President of the Vietnam Association of Foreign Invested Enterprises, said that although the investment environment in Vietnam still reveals some limitations due to poor infrastructure and the inadequacy of laws and policies, it appears attractive to foreign investors. Vietnam is a large market with more than 90 million consumers and the incomes of Vietnamese people are forecast to increase in the time to come. Currently, the per-capita annual income of Vietnamese people is nearly US$2,000 and it is predicted to increase to US$3,000 by 2017 and US$5,000 by 2020. In the opinion of Professor, Dr. Nguyen Mai, if the per-capita annual income of Vietnamese people reaches US$5,000 by 2020, about 10-15 million people will have annual incomes of US$15,000 per person. This is a very important factor that foreign investors cannot ignore when choosing to invest in Vietnam. Political stability, rapid economic growth and the Vietnamese government’s nonstop efforts to improve the investment environment are other factors making Vietnam attractive to foreign investors.
In recent times, many large groups in the world have intended to expand investment in Vietnam. For example, after investing nearly US$7 billion in Bac Ninh and Thai Nguyen provinces, the Samsung Group has made plans to increase investment in Vietnam in other fields such as oil refinery and petrochemicals, shipbuilding, thermoelectricity and healthcare. Professor, Dr. Nguyen Mai said, “Samsung’s investment in Vietnam is predicted to reach US$13 billion in the next several years.”
A lot of Japanese investors have shown great interest in the investment environment in Vietnam. One of them is AEON, a leading retailing group of Japan, which has been present in Vietnam since 2011 with a shopping center project in Ho Chi Minh City. After three years operating in Vietnam, in June 2014, AEON decided to increase investment by an additional US$43 million to US$128.5 million. The group intends to open a new shopping center in Hanoi next year, looking towards becoming the largest global retailing group in the Vietnamese market by 2020.
VinaCapital General Director Don Di Lam affirmed that Vietnam remained an attractive investment destination in the ASEAN (Association of South East Asian Nations) region, ranking third in Asia, behind China and India.
Recently, a delegation of 10 Japanese businesses from Kanagawa Province visited Vietnam to explore the investment environment in the country. In the framework of their visit, the Vietnamese Ministry of Planning and Investment and the government of Kanagawa Province signed a memorandum of understanding on economic exchanges and promised to create an open investment environment with adequate infrastructure for businesses from Kanagawa Province to invest in Vietnam. The two sides will establish a liaison office and a regular dialogue channel to assist businesses from Kanagawa Province when investing in Vietnam, preparing to build a Kanagawa Industrial Park in Vietnam.
Vietnamese Ambassador to Japan Doan Xuan Hung said that many Japanese business delegations were preparing to visit Vietnam to explore the investment environment in the country. A delegation of 70 Japanese businesses will visit Vietnam this coming October.
Clearly, Vietnam can expect satisfactory FDI attraction results in the time to come./.
By Nguyen Hoa