Fdi

Vietnam is home to 32,539 valid foreign direct investment (FDI) projects with registered capital of a combined US$381 billion, of which US$233 billion has been fully disbursed.

The World Bank expected the government to stimulate the recovery in the short term and preserve fiscal and debt sustainability in the longer term.

In the first eight months of 2020, Singapore was Vietnam’s largest investor with US$6.54 billion, accounting for 33.5% of total commitment.

While Vietnam’s economic outlook in the near term is dim, the country is showing stronger resilience than most comparable economies, stated the ADB.

To ensure its place among front-runners in attracting global FDI in the future, Vietnam should prioritize quality over incentives in attracting investment capital, said an ADB expert.

In addition to the ratification of new laws, Vietnam’s participation in high-standard FTAs ensures the country’s status among attractive investment destinations, Prime Minister Nguyen Xuan Phuc has said.

In addition to current incentives, Vietnam also offers tailor-made ones for hi-tech projects that help local firms further integrate into global value chains, said a senior government official.

Following the first wave of investment in the 1990s, a second wave from Taiwanese companies to Vietnam is taking place with a focus on electronics and hi-tech fields.

Amid global uncertainty, Vietnam continues to attract fresh FDI and remains an exception to a subdued private investment outlook of the Southeast Asian region in recent quarters.

Year to August 20, 1,797 new projects have been approved with total registered capital of US$9.73 billion, up 6.6% in capital and down 25.3% in the number of project year-on-year.