Vietnam remains attractive, safe destination for foreign investors

Minister Dung made the statement during a recent teleconference held in Hanoi on September 7 themed ‘Vietnam- a rising star’.

Addressing the event, Nirukt Sapru, CEO of Vietnam and ASEAN & South Asia Cluster Markets, Standard Chartered Bank, said Vietnam’s strengths come from a number of crucial factors, including a young and dynamic workforce with a strong knowledge of technology coupled with a growing middle class and an open economy, both of which turn the country into an attractive location for foreign financiers.

Sapru went on to emphasize that several multinational corporations have expanded their footprint throughout the country to make use of factors in terms of close geographical distance and capability to strengthen connectivity with ASEAN as a whole.

He added that the complicated nature of the novel coronavirus (COVID-19) pandemic has yet to prevent potential financiers from seeking investment opportunities and devising new strategies aimed at sustaining and accelerating growth locally.

At the event, Planning and Investment Minister Nguyen Chi Dung attributed the country’s tag as a safe and attractive investment destination to enjoying several competitive advantages, along with the general improved investment climate and the nation’s rising status in the international arena.

The Minister added that with global foreign investment anticipated to decline by 40% this year, the country has achieved encouraging results in attracting foreign investment during the first eight months of the year, with total registered capital reaching approximately US$20 billion. Most notably, newly registered and increased capital increased by 6.6% and 22.2%, respectively.

Furthermore, the Minister revealed that Vietnam will place a high priority on attracting hi-tech projects which are capable of assisting Vietnamese enterprises in getting involved in the global value chain in association with human resource training.

The country increasingly regards foreign investment as an important source of capital for local socio-economic development, with the Ministry of Planning and Investment poised to set out criteria aimed at selecting quality investors whilst offering higher incentives.

Several participating economists and investors underlined the need to seize upon the opportunities of shifting investment capital inflows following the COVID-19 pandemic.

According to Minister Dung, Vietnam has exerted all-out efforts in recent times to prepare for the shift of investment inflows by upgrading infrastructure for production, developing quality human resources, promoting the development of supporting industries, and setting up special working groups to welcome multinational corporations and large enterprises.

Soren Bech, general manager of RB Health Vietnam, underscored the importance of investing more in the education sector to improve the quality of human resources and seize upon the opportunities of Industry 4.0 as the country focuses increasingly on the manufacturing industry.

C.K. Tong, CEO of BW Industrial Development JSC, outlined the need to further develop the infrastructure and logistics sectors, especially in southern Vietnam, although many localities throughout the country have established linkages to airports, ports, and major roads.

At the teleconference, investors also expressed a keen interest in the fields of finance, banking, fintech, as well as M&A investments domestically.