Foreign investors start 2019 on the right foot

09:43 | 05/03/2019 Economy

(VEN) - Registered and invested foreign direct investment (FDI) capital in January 2019 increased sharply compared to the same period last year, auguring well for FDI attraction this year.

foreign investors start 2019 on the right foot

Thang Long Industrial Park (Vinh Phuc)

According to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA), Vietnam attracted US$1.9 billion in FDI capital in January 2019, up 51.9 percent from January 2018, while US$1.55 billion were invested, up 9.2 percent. Some 18 industries benefitted from new FDI projects, mostly processing, manufacturing, science and technology, and real estate.

Japan ranked first among 51 countries and territories investing in Vietnam with almost US$364 million, accounting for 19 percent of the total.

Goki Nobuta, General Director of the Thang Long Industrial Park (Vinh Phuc) Corporation just north of Hanoi said Japanese investment in Vietnam is growing strongly, and the recently completed first phase of the industrial park had attracted eight Japanese investors. It is expected to house 80 Japanese investors when it comes into full operation. These include support industries, high technology, engine manufacturing, and production of automobile and motorbike components and spare parts, electronic accessories and precise mechanical products.

Shi Rui Qi, Head of the Taipei Economic and Cultural Office in Hanoi, said Taiwanese investors are seeking cooperation opportunities in Vietnam, especially in the high technology field. A new wave of Taiwanese investment is forecast for Vietnam in 2019 and the following years, he said.

The signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the upcoming signing of the EU-Vietnam Free Trade Agreement (EVFTA) are also expected to provide favorable conditions for Vietnam to attract FDI in 2019.

Austrian Ambassador to Vietnam Thomas Schuller G-tzburg said Vietnam’s markets and investment conditions are favorable, making it a promising destination for Austrian investors in the near future. Austrian enterprises are interested in such areas as transport infrastructure construction (mostly railway and roads), telecommunications, health and tourism, he said.

Despite the promising start of the year and the potential advantages, economists still believe Vietnam needs to improve the quality of its human resources, develop technology, better the business environment and help businesses solve their problems if it is to become a long-term attractive destination for foreign investors.

In January, 226 FDI projects totaling US$805 million in registered capital were licensed in Vietnam, up 81.9 percent

from January 2018.

Nguyen Hoa