Vietnam is expected to become the leading country in attracting investment

Foreign businesses in Vietnam place high expectations on the recovery of the Vietnamese economy. Photo: H.Dịu

In recent reports and assessments, international organizations have made very positive comments about the prospects for the recovery and development of Vietnam's economy.

During his visit to Vietnam a few days ago, Mr. Bill Winters, Global General Director of Standard Chartered Bank, assessed that Vietnam is playing an increasingly important role in international trade and global supply chains as well as a manufacturing site, which in turn continues to offer many attractive business opportunities.

Therefore, experts of Standard Chartered Bank have forecast that Vietnam is a rising star in the region, with GDP growth of 6.7% in 2022 and 7% in 2023. In addition, the International Monetary Fund (IMF) and the World Bank (WB) have also continuously raised the forecast of Vietnam's GDP economic growth in 2022 to 7% and 7.5%, respectively. Moody's, after 4 years, has upgraded Vietnam's long-term national credit rating from Ba3 to Ba2 with a stable outlook.

Speaking at a conference on maintaining macroeconomic stability, controlling inflation, and boosting growth with Prime Minister Pham Minh Chinh on the afternoon of September 12, Mr. Andrew Jeffries, Director of the Asian Development Bank (ADB) in Vietnam commented that Vietnam has very high self-reliance to ensure a balance for the economy. The success of Vietnam opens up good prospects for the investment and business environment.

Obviously, the above comments are increasingly strengthening confidence and attracting foreign investment (FDI) to Vietnam.

According to the latest data from the General Department of Customs, the total import-export turnover of FDI enterprises reached US$346.33 billion, up 16.2% over the same period last year, accounting for 69.3% of the total import-export turnover in the first 8 months of the year. In which, the total export turnover of goods from the beginning of the year to the end of August of this group of enterprises reached nearly US$185.44 billion, up 18.2% over the same period last year, accounting for 73.4% of the total export turnover of the country.

Currently, Vietnam is a destination for many foreign investors from 94 countries and territories. According to the Ministry of Planning and Investment, accumulated to August 20, 2022, the whole country has more than 35,500 valid projects with a total registered capital of over US$430 billion. The processing and manufacturing industry took the lead with a total investment of over US$10.7 billion, accounting for 63.9% of the total registered investment capital.

The EuroCham Business Confidence Index (BCI) has rebounded strongly since the end of 2021.

From the business community, Mr. Ramachandran AS, General Director of Citibank Vietnam, representative of the American Chamber of Commerce (AMCHAM) said that Vietnam has built a solid reputation when assessed by foreign investors as having a strategic location, a safe and attractive investment destination thanks to the policy of developing a stable macroeconomic environment, high and sustainable GDP growth as well as low inflation and prudent fiscal policy management strategy with the lowest debt-to-GDP ratio in the world.

Sharing the same view, Mr. Alain Cany, President of the European Chamber of Commerce in Vietnam (EuroCham) said that the indicators of the Vietnamese economy are still stable while neighboring countries are facing difficulties. In particular, the very strong commitment of the Prime Minister at COP 26 last year to reduce emissions to zero by 2050 will help Vietnam become a leading country in attracting and attracting foreign investment.

With these expectations, foreign businesses have expressed their desire to cooperate and invest in many fields, especially projects related to green growth and sustainable development.

For example, US businesses are eager to collaborate in areas of energy transition including fostering energy transition partnerships, harnessing the full potential of the digital economy, and reforming the capital market to promote investment. European and Korean businesses want to cooperate in building green infrastructure, green energy, and green production.

However, in order to create more favorable conditions, foreign businesses in Vietnam suggested that Vietnam continue to reform administrative procedures, and use a public-private partnership (PPP) in the overall policy of mobilizing resources of both the state and the private sector.

Businesses also suggested the Government should have policy support, and encourage banks to provide green credit, green finance, and green bonds for businesses to access; along with that, fiscal policy to support monetary policy and economic recovery should be deployed with a stronger role, towards more specific goals.