Prospects in calling for FDI capital

Attracting foreign direct investment (FDI) is one of the bright spots in Vietnam’s economic picture in the first six months of the year. In addition to the continued increase in new investment flows, many projects operating in Vietnam are also expanding their production scale, contributing to increasing the production and business capacity of the economy.

Loading and unloading cargo containers at Cat Lai port (Ho Chi Minh City). (Illustration photo: Hong Dat/VNA)

The figure of 15.2 billion USD of FDI capital in Vietnam in the past six months is considered a fairly good growth rate (up 13.1% over the same period) in the context of the global geopolitical situation still having many uncertainties, significantly affecting investment activities. Notably, realized FDI capital reached about 10.8 billion USD, up 8.2%, in which many new, large-scale projects were invested according to plan, showing that the commitment of foreign investors is substantial.

There are three factors for investors to continue to trust in Vietnam's investment environment: First, investors' adaptive diversification strategy since the Covid-19 pandemic; second, Vietnam's economic growth has recovered well in recent times, opening up many expectations for investors; third, Vietnam maintains macroeconomic stability, ensuring major balances of the economy in the context of many fluctuations in the world situation.

Notably, the current phase of attracting new-generation FDI has significantly improved the quality of investment projects in Vietnam, reflected in the attraction of new investment and capital increase in many large projects in the fields of semiconductors, energy (production of batteries, photovoltaic cells, silicon bars), manufacturing of components, electronic products, and products with high added value. This shows that investors' confidence in Vietnam continues to be strengthened. Existing investors all believe in the Government's policies and the future development of Vietnam's economy.

Many investors consider Vietnam an attractive destination with great potential and room for growth in the medium and long term. The global economic outlook in 2024 is forecast to recover weakly and face many risks and major challenges due to complicated developments in the post-Covid-19 period, geopolitical instability, and competition between major countries that continue to create changes and impact the global economy. New standards and even interventions by some governments to orient investment activities may affect the FDI shift trend in the coming time. In that context, the Ministry of Planning and Investment forecasts that FDI attraction in 2024 could reach 30-40 billion USD, equivalent to or higher than the previous year.

Vietnam's prospects for attracting FDI continue to be positive. However, to maintain this result, solutions are needed to overcome some current bottlenecks in order to continue attracting investment. Accordingly, Vietnam needs to urgently prepare skilled human resources, especially in the field of semiconductor electronics, continue to improve the business environment, and overcome local power shortages in some localities with many electronics industry projects.

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