This information was affirmed by Do Nhat Hoang, Director of the Foreign Investment Agency under the Ministry of Planning and Investment, during talks held on foreign direct investment (FDI) attraction on September 4.
Hoang emphasised that despite FDI capital inflows into the country over the past eight months declining by 13%, this drop can be viewed as acceptable when compared to other economies.
In addition, a number of positive signs have emerged due to the number of projects with newly registered capital and increased capital rising by 6.6% and 22%, respectively.
Hoang went on to reveal that a special working group under the Ministry of Planning and Investment has recently worked with several tech giants in an effort to discuss billion-dollar projects, with some of the detailed information on investments not being disclosed.
According to the report on the current industrial production situation compiled by the Ministry of Industry and Trade, several popular brands such as LG, Panasonic, and Foxconn, one of the key suppliers of components for Apple Inc, have already initiated plans to shift their production chains to the country.
Apple for instance recruited personnel in both Hanoi and Ho Chi Minh City earlier this year, opening up the possibility that the firm could build factories in Vietnam in the future.
Nguyen Van Toan, vice chairman of the Association of Foreign Investment Enterprises, noted that Vietnam is not the only country that has captured the attention of foreign financiers, with several locations such as China, India, and Indonesia fiercely competing to maintain and attract additional levels of FDI.
Nguyen Dinh Cung outlined that the majority of FDI inflows into the country mainly originate from Asia, while there is a severe lack of high-quality capital flows from Europe and the United States. He added that there should be radical institutional reform and improvements made in the investment climate in order to boost high-quality FDI attraction.
Hoang emphasised that Vietnam has been striving to improve its institutions by simplifying administrative procedures, offering incentives for FDI investors, especially those involved in high-tech projects with the participation of local enterprises within the value chain.
Experts have therefore advised local firms to enhance their capacity to partner with foreign businesses while receiving proper support from the State.
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- Vietnam to attract more foreign investment in high-tech industry
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- Vietnam lures USD 12 25 billion in FDI since beginning of 2021
- Singapore is Vietnam’s leading foreign investor in 2020