In addition, experts also identified the possibility of new capital flows and competitive opportunities in the region to welcome new capital flows, especially high-quality foreign investment flows into Vietnam.
Large corporations are more cautious about investment decisions.
Vietnam is considered by the international community to be one of the leading countries and has achieved many important achievements in attracting foreign investment. As of the end of April 2023, Vietnam had attracted nearly 446 billion USD in foreign investment capital; of which, nearly 280 billion USD had been disbursed. Many multinational corporations with modern technology are expanding their investment in Vietnam, with increasing quality and efficiency.
By participating in 19/21 sectors in the national economic sector system, foreign-invested enterprises have contributed to promoting domestic enterprises to constantly innovate, arouse creativity, resonate internal strength, enhance competitiveness, promptly seize opportunities, as well as promote external resources, improve the efficiency of investment cooperation, and create important growth drivers for the economy.
Speaking at the workshop, Deputy Minister of Planning and Investment Do Thanh Trung said that the foreign investment sector has always been identified as an important component of the Vietnamese economy. However, the world continues to face many difficulties and challenges from the global economic downturn and high inflation. This context has greatly affected global investment flows, including Vietnam; plus many arising issues such as the expected application of a global minimum tax rate of 15% from 2024... so foreign investment in Vietnam is in a general trend of slowing down. "Recently, we have seen signs that large corporations are more cautious and thorough in considering continued investment, abroad, including in Vietnam," Deputy Minister Do Thanh Trung emphasized.
Looking forward to a stable business environment
According to the United Nations Conference on Trade and Development (UNCTAD) report on global investment capital, competition among developing countries in attracting foreign investment will be fierce, especially in the context of foreign investment capital flows being forecast to decline in 2023 while the demand for attracting investment capital for the recovery and development period after Covid-19 is increasing. In addition, the report also shows that global foreign investment capital flows tend to focus on the following areas: High technology, innovation, research and development; green economy, digital economy, circular economy; clean energy; ... These are also the areas in which Vietnam is focusing on attracting foreign investment and offering many incentives and investment support, thereby opening up many opportunities for cooperation and development for foreign investors in Vietnam in the coming time.
From the perspective of a large-scale enterprise investing in Vietnam, Mr. Choi Joo Ho, General Director of Samsung Vietnam Complex, said: Currently, more than 50% of Samsung phones sold worldwide are Made in Vietnam products manufactured in Vietnam. Vietnam has developed by leaps and bounds to become a key global country producing mobile phones for the world. However, the world situation and rapid changes in the business environment are threatening the continuation of this success story, typically the global minimum tax mechanism.
Regarding the issue of enhancing Vietnam's competitiveness in attracting foreign investment, Mr. Choi Joo Ho first mentioned the issue of improving the investment environment. Accordingly, he hoped that the Vietnamese Government would continue to create a predictable business environment, in line with global standards and recent changes in the investment environment.
Sharing the same view, Mr. Furusawa Yasuyuki, member of the Board of Directors of AEON Group (Japan) in charge of the Vietnamese market, and General Director of AEON Vietnam, said that looking back at the past 11 years, AEON has achieved expectations for the first stage of development in Vietnam. AEON Group has invested in many foreign markets, but to expand to its current scale in a short time, Vietnam is the country with the highest growth rate and greatest potential. From 2017 to 2022, the total export value of Vietnamese products through AEON's retail system to Japan and other countries reached more than 2 billion USD. "AEON Group identifies Vietnam as the second key market next to Japan to accelerate investment activities and we hope that related procedures can be simplified" - AEON representative emphasized.
VU DUNG
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