Over US$5 billion invested in Vietnam in the first two months of the year

By the end of February 20, 2022, the whole country has 34,700 valid projects with a total registered capital of over US$418.8 billion. The disbursement of foreign investment projects is estimated at nearly US$254.3 billion, equal to 60.7% of the total valid registered investment capital.

In terms of investment, foreign investors have invested in 17 sectors out of 21 national economic sectors. In particular, the processing and manufacturing industry leads the way with a total investment capital of over US$3.13 billion, accounting for 62.7% of the total registered investment capital.

Regarding investment partners, 51 countries and territories have invested in Vietnam in the first two months of 2022. Singapore leads with a total investment capital of over US$1.7 billion, accounting for 34.2% of total investment capital in Vietnam, up 59.3% over the same period in 2021.

However, in terms of the number of projects, Korea is the partner with the most investors interested and making new investment decisions as well as expanding investment projects and GVMCP in January 2021 (accounting for 16.9% of new projects, 35.9% of adjustments and 36% of GVMCP).

Vietnam is still an attractive destination for FDI investors. Photo: Hương Chi

Evaluating the situation of foreign investment in the first two months of 2022, the General Statistics Office assessed that the disbursement of foreign investment projects in the first two months of 2022 increased by 7.2% over the same period and increased by 0.4% compared to January 2022.

The Government issued and promptly implemented many appropriate solutions to support and remove difficulties for businesses, create conditions for businesses to minimize damage, maintain and expand production and business activities.

Furthermore, capital adjustment and capital contribution to buy shares both increased strongly over the same period. In which, the newly registered investment capital decreased sharply because there were not many large-scale projects, but the number of new investment projects increased (45.2%).

Thus it showed the confidence of foreign investors in the result of the Covid-19 pandemic prevention of the Government, as well as the investment environment in Vietnam in the context of the new normal.

In order to attract FDI into Vietnam in the near future, Mr. Nguyen Van Toan, Vice Chairman of the Association of Foreign Investment Enterprises (VAFIE) said that it was necessary to develop human resources to ensure that they could receive high-tech projects from developed countries into Vietnam.

Infrastructure also needed to be better planned and developed in the near future, and especially 4G technology for digital transformation. If we did not do well, without prior preparation, we would struggle to attract high-quality FDI capital from developed countries.

Regarding policies, we also need to make further improvements to make investors feel more secure when investing in Vietnam. In particular, the link between foreign investors and Vietnamese enterprises was still very weak.

Thus, it could result in reducing the spillover of foreign investors to domestic investors.

Furthermore, the supporting industry has not been developed, so the added value, as well as the efficiency of foreign investment in Vietnam, is still low. In addition, the implementation of commitments in free trade agreements that Vietnam has signed, including agreements such as EVFTA, CPTPP need to be a focus.