Vietnam's industry grew positively in the first quarter

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Vietnam's industrial production increased by 8.5% compared to the same period last year, after increasing by 9.2% in February. Photo: Internet

The Vietnam Industry Highlights report in the first quarter of 2022 published by Savills Vietnam on April 20 showed that one of the bright spots of Vietnamese industry in the first three months was the impressive growth rate of the foreign direct investment (FDI) flows into the Vietnam market.

According to Mr. Do Nhat Hoang, Director of the Foreign Investment Department (Ministry of Planning and Investment), many foreign investors are still very confident with the growth rate of Vietnam's industry and the investment environment in the new normal context.

The FIA also forecasts that the reopening of the border from March 15, new visa-free policies and the shift of capital flows of European investors due to the Russia-Ukraine conflict will support Vietnam in the process of economic development to attract FDI.

Commenting on this issue, Mr. John Campbell, Deputy Director of Savills Vietnam Industrial Services Division, said that Vietnam's policies to support the economy and successful vaccination campaign in recent years have created a solid basis for FDI enterprises to put their faith in the recovery of Vietnam's market.

Vietnam's economy is forecast to grow beyond expectations in 2022 as domestic demand recovers and FDI inflows continue to grow steadily. Accordingly, GDP increased by 5% in the first quarter of 2022.

As of March 20, the total registered FDI capital reached US$8.9 billion, equaling 87.9% over the same period last year. Realized FDI reached a 5-year high of US$4.42 billion, up 7.8% over the same period last year. Singapore is the country with the largest source of FDI into Vietnam in the first three months of the year, followed by South Korea. In particular, the large-scale production investment project of Lego Group in Binh Duong has made Denmark the third country.

Notably, the manufacturing and processing industry attracted US$5.3 billion, equivalent to 60% of total investment capital. Of which, 84 newly licensed projects with registered capital of US$2.1 billion and 150 projects registered to increase capital were recorded.

According to Mr. John Campbell, since the third quarter of last year, the industry has experienced a very memorable time when 2021 is a very difficult year, especially with the strong outbreak of the Covid-19 pandemic.

“However, from the end of 2021 until now, we have had some positive developments, the latest being the reopening of borders and visa exemption for citizens of 13 countries. This is very meaningful to investors as well as tenants who are multinational companies that have not been able to come to Vietnam. These companies can come to see the project in person, sign lease contracts, set up facilities in Vietnam as well as complete investment registration certificates and business registration certificates,” said Mr. John Campbell.

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According to the representative of Savills Vietnam, the positive point recorded in March was that Vietnam's industrial production increased by 8.5% over the same period last year, after increasing by 9.2% in February. Despite the pandemic, this is the fifth consecutive month that industrial output recorded positive growth.