Solutions for Vietnam to 'score points' with foreign investors

More careful in investment decisions

Highly appreciating Vietnam's opportunities in attracting foreign capital in recent years, Mr. Shantanu Chakraborty - Country Director of the Asian Development Bank (ADB) said: In recent years, Vietnam has become one of the attractive destinations for attracting foreign direct investment (FDI). The results of attracting high levels of foreign direct investment have boosted Vietnam's economic growth, especially in 2024 with a GDP growth rate of nearly 7.1%.

Sharing the same view, Mr. Nguyen Ba Hung - Chief Economist of ADB in Vietnam - said: Vietnam is an attractive destination for attracting foreign direct investment.

Foreign direct investment in the first quarter of 2025 increased by nearly 25% compared to the same period in 2024. Illustrative photo

The results of attracting foreign direct investment in the first quarter of 2025 recently announced by the Foreign Investment Agency (Ministry of Finance) showed that Vietnam attracted nearly 11 billion USD of foreign capital in the first 3 months of the year, an increase of nearly 35% over the same period in 2024.

Along with the positive growth of registered FDI capital, disbursed FDI capital was also quite positive, reaching 4.96 billion USD, up 7.2% over the same period last year. This is the highest realized capital level in the first quarter of the past 5 years.

However, according to Mr. Nguyen Ba Hung, in the current economic context, many investors are observing the situation, waiting for more information and being more cautious in making investment decisions. This will affect Vietnam's chances of attracting FDI in the coming period.

Also commenting on this issue, Ms. Phi Thi Huong Nga - Head of the Department of Industry and Construction Statistics, General Statistics Office (Ministry of Finance) - said: The results of attracting FDI in the first 3 months of the year in Vietnam are very positive. However, at this time, foreign investors will have a wait-and-see mentality when making investment decisions because they are waiting for new signals about the trade policies of countries.

According to economic experts, it is completely normal for foreign investors to express concerns when making investment decisions in the context of many global changes, because the ultimate goal of investment and business activities is still to seek profit.

However, when all policies are clear and stable, FDI capital flows will continue to be maintained, especially for countries with advantages in attracting investment like Vietnam.

With its available advantages, Vietnam is being evaluated as an attractive destination for FDI capital flows. Illustrative photo

Solutions for Vietnam to "score points" with foreign investors

It is forecasted that foreign investors will have a period of pause to observe when investing in Vietnam. However, according to economic experts, with the advantages of transport infrastructure, electricity and telecommunications infrastructure, the quality of human resources is increasingly improved, combined with the breakthrough policies in administrative reform that Vietnam is implementing as well as the goal of reducing 30% of administrative procedures as required by the Government... will open up new spaces and favorable opportunities for Vietnam to attract foreign capital in the coming time.

However, to create favorable conditions to attract FDI in the new context, Ms. Phi Thi Huong Nga said that Vietnam needs to continue to be proactive and positive in improving the investment environment. Along with that, the authorities need to provide early information to businesses about reciprocal taxes, helping businesses prepare data and be ready to respond to protect their interests in foreign markets. From there, solutions should be proposed to minimize the impact of tariffs on manufacturers and exporters.

Meanwhile, according to Mr. Shantanu Chakraborty, to facilitate FDI attraction in the coming time, Vietnam can expand the Free Trade Agreements (FTAs) that Vietnam has signed, such as the Vietnam - European Union Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP)... to increase export opportunities to these potential markets.

In addition to the above solutions, Mr. Shantanu Chakraborty said that Vietnam can attract investment capital in advantageous industries, especially priority areas in FTAs ​​such as high technology and sustainable products.

Important factors that help attract FDI to Vietnam include: Stable macro policies and strong economic reforms; expanding free trade agreements (FTAs); clear tax regimes and incentives for investors; strengthening infrastructure and human resource development.

Nguyen Hoa

Source: https://congthuong.vn/giai-phap-de-viet-nam-ghi-diem-voi-nha-dau-tu-nuoc-ngoai-382788.html