Vietnam remains an attractive destination for FDI investors regardless of the Covid-19 pandemic

Many investment expansion plans

On the afternoon of September 27, the Government Portal held an online seminar with the topic "Covid-19 and foreign direct investment (FDI): Impact and prospects".

Speaking at the seminar, Ms. Nguyen Thi Bich Ngoc, Deputy Minister of Planning and Investment said that, regardless of the negative impact of the Covid-19 pandemic, attracting foreign investment increased by 4.4% in nnine months. By September 20, the total newly registered capital, adjusted and contributed capital, purchased shares and purchased capital contributions from foreign investors reached US$22.15 billion, up 4.4% year on year. This result shows the confidence of foreign investors in the stable, safe and attractive investment environment with many outstanding potentials and advantages of Vietnam.

According to Mr. Choi Joo Ho, General Director of Samsung Vietnam complex, in the first six months of this year, Samsung Vietnam still maintains production and exports, and if the factory in Ho Chi Minh City soon resumes operations, the company will achieve the set export target this year. The Covid-19 pandemic causes difficulties, but in the long run, Vietnam is still an attractive destination for foreign investors.

Currently, Samsung Vietnam is building a R&D center (research and development) with a scale of more than US$220 million in Hanoi. This R&D center will research and develop 5G, large databases, and artificial intelligence in Vietnam, contributing to upgrading the position of the Samsung complex in Vietnam.

With support from ministries, sectors and localities, Samsung will continue to expand production and invest in equipment for six factories in this country. Previously, Samsung only invested in manufacturing and assembling; however, in the near future the group will upgrade and invest more in research and development to make Samsung Vietnam a major global production base.

“The 4th wave of the Covid-19 pandemic is causing many difficulties for manufacturing plants; however, Samsung will not change its investment strategy. If Samsung's factory in Ho Chi Minh City resumes operations soon, the company will achieve the set export target this year.

“To attract more foreign investment, Vietnam needs to fight the pandemic effectively. Besides, it is necessary to ensure the circulation of goods and avoid supply chain disruption," added Mr. Choi Joo Ho.

Representatives of many FDI enterprises in Vietnam commented that Vietnam still attracts foreign investors despite the pandemic. Photo: Tieu My.

Offer favorable conditions for investors

Nestle Group has also decided to invest in Vietnam in the near future. According to Mr. Binu Jacob, General Director of Nestlé Vietnam, the production base of Nestle in Vietnam is now the leading and most effective one. Therefore, Nestle Group has just decided to invest US$132 million to build a new factory in Dong Nai in the next two years, thereby turning Vietnam into Nestlé's production center in Asia and Oceania.

Assessing the business investment environment in Vietnam, representatives of many FDI enterprises in Vietnam said that the country still attracts foreign investors despite the pandemic. Investors are interested in Vietnam and want to maintain long-term business activities here.

At the seminar, Vice Chairman of Dong Nai Provincial People's Committee Nguyen Thi Hoang confirmed that amid the difficulties due to the Covid-19 pandemic, the province always accompanies businesses; promptly remove difficulties and obstacles for businesses to maintain safe production. At the same time, the Committee also empowered businesses to take the initiative in choosing production recovery plans in addition to the province’s support. Dong Nai is facilitating FDI enterprises best to invest in the province.

Mr. Vuong Quoc Tuan, Vice Chairman of Bac Ninh Provincial People's Committee also emphasized that in order to meet the companionship and trust of FDI enterprises in Bac Ninh province, the province is exerting utmost efforts to build Bac Ninh into an attractive destination. The more effectively production businesses and enterprises develop, the more positive results the local economy will achieve.

Besides, investors and experts are offered favorable conditions to work, survey and learn about the investment environment in the province. Bac Ninh leaders regularly listen to enterprise’s comments and implement administrative reform, shorten many procedures, facilitate mechanisms, and offer incentives for investors.