Based on statistics from the Foreign Investment Agency of the Ministry of Planning & Investment, in 2017, foreign direct investment (FDI) to Vietnam reached an a 10-year high. As of December 20, total value of newly, additionally registered capital, capital contributed and shares bought by foreign investors of US$ 35.88 billion, up 44.4% compared to the same period of 2016.
In 2017, Samsung Display project in Vietnam has received an additional investment fund of US$ 2.5 billion.
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Specifically, there are 5 billion-dollar-projects approved this year, including 3 thermal power plants being the Nghi Son 2 Thermal Power Plant with total investment of US$2.79 billion from Japanese investor in Thanh Hoa with capacity of 1,200 MW; Van Phong 1 Thermal Power Plant with total investment of US$2.58 billion from Japanese investor in Khanh Hoa for capacity of 1,320 MW, and Nam Dinh 1 Thermal Power Plant with total investment of US$2.07 billion from Singaporean investor in Thai Binh with capacity of 1,109.4 MW. Besides, the Samsung Display project in Bac Ninh has received additional fund of US$2.5 billion and the Block B – O Mon gas pipeline project with total investment of US$1.27 billion in KIen Giang, not to mention the smart complex project in Ho Chi Minh’s Thu Thiem Urban area of US$885.85 million from Korean investor. In overall, these 5 billion-dollar-projects have total investment of US$12 billion, accounting for more than 40% of total registered capital to Vietnam in 2017.
According to foreign and local experts, in 2018, Vietnam will be the magnet for FDI. This statement is based on the optimistic sentiments from foreign investors over Vietnam’s economic prospects. In a survey of more than 1,400 Chief Executive Officer (CEO) and business leaders with responsibility in each of the 21 Asian Pacific Economic Cooperation (APEC) economies released by PwC, close to half of foreign business investors in Vietnam (47%) plan to increase their investments in Vietnam over the next 12 months, indicating a high level of confidence among business leaders in Vietnam.
“Positive sentiments can be seen in three areas; an expanding domestic economy, expectations of new growth from trade agreements and export expansion (both regional and intra-regional export growth), along with a positive outlook on innovation in key sectors of opportunity. Sustained economic reform, coupled with a strengthening of public institutions and an emphasis on education and skills development will be crucial to make Vietnam fit for the future” – said Dinh Thi Quynh Van, PwC Vietnam General Director.
In the draft strategy to attract FDI in period 2018 -2023 prepared by the Ministry of Planning & Investment in collaboration with the World Bank, new approaches have been listed for economic sectors in attracting investment fund. Specifically, priority for FDI attraction will be vital for economic sectors in need of increasing added value and improving domestic competitiveness, including: manufacturing; industrial machinery and equipment; services; hi-tech agriculture; and tourism.
