Vietnam continues to be key overseas production base of global giants
The country needs to well prepare for conditions to compete with its rivals in attracting foreign investment.
The country needs to well prepare for conditions to compete with its rivals in attracting foreign investment.
The Decree governing the establishment and operation of the Local Development Investment Funds was signed by the Prime Minister on December 18.
Vietnam will actively and selectively attract foreign investments, taking high-quality, efficiency, modern technology and environmental protection as the key benchmarks.
IPs and EZs in Vietnam have attracted a total of 10,009 foreign-invested projects with total registered capital of nearly US$197.8 billion to date, 70% of which has been disbursed.
Vietnam needs US$7 – 10 billion for new energy projects each year.
There will be enormous incentives in trade between Vietnam and the EU, including the Netherlands, especially as both sides have ratified the EU–Vietnam Free Trade Agreement (EVFTA).
A survey by Corporate Investment and Mergers & Acquisitions Center also showed that one of the obstacles to M&A deals in Vietnam is the time consuming approval process.
Part of blame is the business performance of the FDI firms which lack stability and significant growth in annual profits, which discourages investors.
In addition to being positive on cross-border investment, 62% of respondents in Vietnam expect to increase their domestic investment in the next 12 months, higher than other economies such as China, Japan and Singapore.