As Vietnam moves toward upper-middle-income status, experts urge the country to focus not only on attracting traditional FDI in industrial production but also on knowledge-based investment and innovation.
Hanoi targets to draw US$30 billion-$40 billion of FDI into projects focused on sustainable development, high value-added creation, and with a competitive edge in 2021-2025.
Vietnam’s diversified network of free trade agreements with major economic powers remains the country’s competitive edge in attracting investors.
![[Infographic] Hanoi’s FDI in 10 months of 2022](https://media.hanoitimes.vn/thumb_x190x131/2022/11/08/Thumb_info.jpg)
Between January and October, Hanoi remains among the top provinces and cities in terms of attracting foreign investment.
Vietnam remains an appealing option for investors looking to diversify their supply chains.
The total FDI disbursement in Vietnam this year is projected to hit $21-22 billion, up 6.4-11.5% year on year.
Between January and September, Hanoi's domestic companies earned a total of US$7.1 billion from exports, while FDI firms sold $6 billion worth of products to overseas markets.
Companies have seen their business situation on the uptrend recently, amid Vietnam's positive economic performance, and expect to continue to bet on staying for the long term.
FDI in Hanoi has been upward in recent years, especially as Vietnam becomes increasingly integrated into the global economy.
Foreign businesses continue to show their confidence in Vietnam’s investment environment.
Despite the challenging global economic environment, Hanoi has been creative in promoting investment facilitation programs and accompanying businesses in their recovery efforts from severe Covid-19 impacts.
Vietnam continues to show its attractiveness to foreign investors, especially with its portfolio of high-quality projects.
Singapore continued to be Vietnam’s largest investor during the seven months with $4.3 billion, or 27.7% of the total newly registered FDI projects.
The high complementary nature of the two economies has laid the foundation for both to significantly boost economic, trade, and investment cooperation over the years.
Vietnam remains a favorite destination for foreign firms seeking to shield from a combination of geopolitical tensions, rising operational costs thanks to the country’s strong economic performance in recent years.
Reopening the economy is key to keeping the strong inflow of FDI into economic sectors.
The disbursement of approved FDI projects increased by 8.7% year-on-year in March, the fourth month of increase as post-Covid-19 lockdown constraints ease.
