FDI companies prove resilient during pandemic

06:00 | 19/05/2022 Economy

(VEN) - Foreign-invested companies have demonstrated resilience despite the heavy impact of the COVID-19 pandemic.

fdi companies prove resilient during pandemic

Southeastern localities remain FDI magnets

Watanabe Nobuhiro, Consul General of Japan in Ho Chi Minh City, said a new wave of Japanese investment is expected in the near future thanks to Vietnam’s newly relaxed entry policies.

Cao Tien Dung, chairman of the Dong Nai People’s Committee, said the province attracted US$1.32 billion and US$1.27 billion in foreign investment in 2020 and 2021, respectively. The figure is expected to reach about US$1.1 billion in 2022, Dung said.

Binh Duong Province attracted more than US$1.68 billion in foreign investment in the first quarter of 2022. As of now, the province has nearly 4,050 FDI projects with total registered capital of US$39.4 billion.

The Mekong Delta province of Long An continues to lead the choice of foreign investors due to its outstanding growth potential. According to the Foreign Investment Agency under the Ministry of Planning and Investment, Long An Province ranked second across the country in FDI attraction in 2021, with US$3.84 billion. As of now, the province has 1,124 FDI projects with total registered capital of more than US$9.3 billion.

fdi companies prove resilient during pandemic
Manufacturing and processing sector takes the lead in FDI attraction

Quick recovery and development

Most FDI projects have modern technologies and half are involved in support industries in line with government priorities. With the pandemic under control and entry policies relaxed, prospects are bright of attracting FDI in the medium and long term.

FDI companies have demonstrated faster recovery. By the end of 2021, total export turnover of FDI companies in Dong Nai Province reached more than US$17 billion, an increase of nearly 22 percent compared to the previous year. They continued to expand production and increase exports in the first quarter of this year despite labor shortages, rising prices of input materials and high transportation costs.

Nguyen Hai Minh, deputy chairman of the European Chamber of Commerce in Vietnam (EuroCham), said foreign investors still see Vietnam as an attractive destination with great potential and opportunities. Despite the difficulties posed by the pandemic, some large corporations have decided to pour capital into Vietnam, such as Denmark’s LEGO Group’s investment of US$1 billion in a factory in the southern province of Binh Duong.

Although the pandemic has caused great losses to businesses over the past two years, all have made greater efforts to stabilize and develop trade and production activities. An improved economic situation, increased orders and travel facilitation will increase investor activity in surveying investment projects and making investment decisions.

Phan Huu Thang, former director of the Foreign Investment Agency, said FDI companies managed to cope with the impact of the pandemic and maintain investment in Vietnam thanks to their resilience and solid foundation. In addition, government efforts to control the pandemic and maintain macroeconomic stability have reassured the FDI community and helped draw investment.

Thanh Thanh