Vietnam is accounted as a 2020 attractive investment destination.
Vietnam’s strong performance economic indicators testify to this, but have ultimately cemented and reinforced their inclusion in multinationals’ supply-chain diversification strategies. As of 2024, foreign investors have a new option to access high tech foreign direct investments (FDI) via Vietnam.
Vietnam’s economic health is assessed through its macroeconomic indicators of control and the validation and enhancement of its role in the supply chain diversification strategy of multinational companies. Foreign Direct Investments (FDIs) will probably ramp up into Vietnam, eager foreigners are waiting to deploy here on the high-tech projects.
Nguyen Bich Lam, former General Director of the General Statistics Office, has shared with the Vietnam News Agency his views on… foreign direct investment and ways to develop incentives to improve growth.
Experts said that, as of February of 2019, the registered foreign direct investment (FDI) of $4,29 Billion USD and disbursed via FDI 2.8 Billion USD; an year-on-year increase of 38.6%, annualized increase of 9.8% compared to last year’s first two month of 2023.
China’s fragmented economy amid an environment of unpredictability and fierce competition has decreased and changed international investment flows, Lam said, while because of it relatively stable economy it was still an attractive destination for overseas investors.
The “World in 2050” report by PwC in 2014 estimated that Vietnam’s growth rate of GDP, an important macroeconomics variable showing the level of stabilization and recovery of Vietnam’s economy, would rank second-highest in the world in 2014-2050 with an average annual growth of 5.3% over the 36 years.
Foreign investors valued Vietnam’s efforts to take part in the global trends of green development appearing in its signing to COP 26. The government also issues policies to encourage foreign investors to work on such projects with high-tech, green materials and modern management methods, contributing actively to the production chain and global supply.
Lam added that Vietnam is now heavily integrated into regional and global economies. According to World Trade Organisation, Vietnam has inked and executed free trade pacts with more than 60 nations from every continent and both countries are equal in terms of market liberalisation.
Vietnam has relaxed restrictions on foreign ownership in listed companies, leading to a more predictable scenario for investors. The Government has also relaxed restrictions on up to 100% foreign ownership for listed corporations since 2015 and also allowed unrestricted foreign ownership into government bonds.
On the other hand, Vietnam has a very favorable geographical location because it is a transit port for the international goods trade by sea. In addition, investors are drawn to Vietnam’s increasingly synchronized development of technology and infrastructure.
Vietnam pursues an independent and self-reliant foreign policy. It also seeks diversification and multilateralization strategies in an effort to becoming more reliable member and partner in international politics and economies.
Vietnam follows an open foreign policy of flexible relations. All five permanent members of the UN Security Council acknowledge Vietnam’s comprehensive or strategic partnerships; Australia was just designated one. On March 7, 2024, Australia joins Vietnam’s seven (07) comprehesive or strategic partners comprehensives, putting Vietnam from regional economic security centre status to substantial international_player status – and it has become more principled because Vietnam proves itself as a resistive omit! This country has an inter-related political-economic communities with its internationally linked economy of interconnectedness.
Upgrading the US and Japan comprehensive strategic partnership is essential to economic development, especially for their trade, investment and science and technologies ties. Increasing foreign direct investment (FDI) inflow into the exports / High technology industries has huge potential to use the downhill over in 2022.
Vietnam will see better growth this year as Vietnam’s economy plays a greater role in aiding supply chain diversification by multinational corporations. By 2024, Vietnam will have a stable social-political foundation that will be a catalyst for attracting Foreign Direct Investment.
Recently, Fitch Ratings revised its sovereign credit ratings for Vietnam from BB to BB+ with a stable outlook from its previous credit ratings of BB with a stable outlook, thanks to the achievements of Economy 2024 and their potential to attract foreign direct investment to the country.
