New directions for drawing foreign investment to Vietnam

09:20 | 01/01/2018 Economy

(VEN) - Hosting the year-long events of the Asia-Pacific Economic Cooperation (APEC) forum in 2017 has given Vietnam an opportunity to promote economic development and investment attraction. Most of Vietnam’s top investment partners such as Japan, the Republic of Korea, the US, China, Thailand and Chinese Taipei are members of APEC.

new directions for drawing foreign investment to vietnam

Shifting flows

Foreign direct investment (FDI) inflows into Vietnam have increased sharply thanks to the shift of investment flows in the world, of which Vietnam is one of the attractive destinations.

Vietnam attracted more than US$33 billion in FDI in the first 11 months of the year, an increase of over 82 percent compared to the same period last year. Of the total projects, 2,293 received investment certifications with total registered capital of US$19.8 billion, a year-on-year increase of 52 percent. In addition, 1,100 projects added capital totaling nearly US$8 billion, representing a 57.6 percent increase over the same period in 2016.

A strong increase in FDI was attributed to the impressive surge of Japanese investment and the positive impact of the 21-nation APEC summit in the central city of Da Nang in early November.

According to the Ministry of Planning and Investment’s Foreign Investment Agency, two FDI projects of large corporations were licensed in Vietnam in November. They are a US$885.85 million smart complex in Ho Chi Minh City’s Thu Thiem urban area by the RoK’s Lotte Group ,and Japanese Sumimoto Corporation’s Van Phong 1 BOT US$2.58 billion coal-fired thermal power plant.

As a result, Japan once again exceeded the Republic of Korea to become the top investor in Vietnam within the first 11 months of the year.

FDI disbursement in the first 11 months of the year reached US$16 billion, an increase of 11.9 percent compared to a year ago.

New directions

According to economists, the Ministry of Planning and Investment should soon complete a new FDI attraction strategy. This strategy will focus on investment attraction in key sectors, especially given Vietnam’s participation in the international economic integration process. The new strategy is expected to encourage localities to compete for FDI in a healthy manner.

A strong increase in FDI is expected to contribute more to Vietnam’s economic growth.

Minh Anh