35 years of proactively attracting FDI

Over the past 35 years, Vietnam has transformed from an economy open to foreign direct investment (FDI) to a country playing an important role in the global supply chain.

Công nhân tại một doanh nghiệp FDI tại Việt Nam. (Nguồn: Thời báo Tài chính)

Workers at an FDI enterprise in Vietnam. (Source: Financial Times)

FDI capital in Vietnam increased from a meager 2 million USD in 1988 to 524 billion USD by the end of 2022. With more than 36,000 FDI projects in operation and a total capital of 441 billion USD, 57% of which was disbursed, Vietnam has demonstrated its ability to proactively attract and manage FDI.

Vietnam's success in FDI strategy is due to many factors, including policy reform and infrastructure development.

Currently, among the three pillars of economic growth, including investment, consumption and export, FDI plays a key role, especially in export. The FDI sector not only makes a large contribution but also surpasses domestic enterprises in some aspects.

Of course, despite facing challenges from adverse domestic and global circumstances, as an open export-dependent economy, Vietnam needs to maintain its position as an attractive long-term destination for multinational enterprises.

The global minimum tax, aimed at preventing profit shifting to low-tax countries, will take effect from January 1, 2024. Vietnam has plans to apply this tax. This is a move that shows that Vietnam is ready to adjust its investment policy framework in line with global trends.

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