Despite challenges in terms of labor resources, supply chain disruptions, geopolitical fluctuations and economic conflicts, Vietnam still sees opportunities from various shifting investment waves and changes in trade structure and order.
That is the view of participants at talks on “Investment Connections” organized by the Foreign Investment Department (Ministry of Planning and Investment) in Ho Chi Minh City last week, which attracted a large number of investors and international organizations.
Do Nhat Hoang, Director of the Foreign Investment Department, said that in 2021 Vietnam’s economy maintained a growth rate of 2.58%, the macroeconomy was stable, inflation was under control, and the business investment environment improved.
Total import-export turnover increased by 22.6% compared to 2020, reaching a record of 668.5 billion USD, particularly exports up by 19%, worth 336.25 billion USD. Vietnam has become the third largest economy in ASEAN with a GDP of over 350 billion USD.
Despite being affected by the pandemic, international investors still trust in Vietnam and are coming here to expand. They see Vietnam as a destination for future plans, said Mr. Hoang.
So far, Vietnam has had over 34,642 FDI projects in operation, with total capital of over 415.6 billion USD from 141 countries and territories.
Vietnam is currently listed by the United Nations Conference on Trade and Development (UNCTAD) as one of the top 20 FDI attracting countries in the world. The International Monetary Fund (IMF) has forecast that Vietnam’s GDP will increase by 6.6% in 2022, higher than that of Malaysia, Thailand, the Philippines and Indonesia.
At the talks, Do Nhat Hoang affirmed that Vietnam is committed to creating favorable conditions for foreign investors to conduct sustainable and long-term business investment in Vietnam.
In particular, the Investment Promotion Center of the Southern (IPCS) will be the focal point to maintain regular communications between local government, diplomatic missions, international organizations, and domestic and foreign business associations.
Tran Thi Hai Yen, Director of IPCS, said that this year, the center will cooperate with the Consulate General of India to implement investment promotion programs, and conferences and seminars related to seaports, logistics, pharmaceuticals, and maritime safety with a number of southern provinces.
IPCS will also coordinate with the Trade Office of the US Consulate General to help Vietnamese businesses to attend the Select USA program organized by the US Trade Office to explore investment opportunities in the US.
IPCS will join the Korea Trade-Investment Promotion Agency (KOTRA) and the Consulate General of Korea to build a program to bring Korean business delegations to provinces in Vietnam to learn about investment opportunities in high-tech agriculture, equipment manufacturing, industrial parks, and export processing zones.
At the same time, IPCS will work with the Japanese Consulate General to help Japanese businesses connect with local governments and explore investment opportunities in high-quality closed livestock production chains, trade centers and retail business chains in Vietnam.
In 2022, Vietnam is forecast to record growth at a significantly higher rate, partly thanks to the high vaccination rate that helped the country recovered most of its economic activity since late 2021.
In 2021, investment capital in start-ups hit a record level of 1.35 billion USD, making Vietnam the most attractive startup valley in the region.