With the drastic and timely direction of the Government and the Prime Minister; the close coordination of ministries, branches and localities in proactively approaching and removing bottlenecks and legal barriers hindering business investment activities of enterprises, in the first 6 months of the year, our country has achieved quite positive results in attracting and implementing foreign investment.
Semiconductor and energy sectors "attract" many large projects
According to information from the Ministry of Planning and Investment (MPI), from the beginning of the year until now, the total registered investment capital has reached nearly 15.2 billion USD, an increase of 13.1% over the same period in 2023. Both new investment capital and adjusted capital increased compared to the same period with corresponding increases of 46.9% and 35%.
Realized capital is estimated at 10.84 billion USD, up 8.2% over the same period in 2023. The increase in both registered and realized FDI inflows will further boost domestic activities.
Notably, there has been a significant improvement in the quality of investment projects. Many large projects in the fields of semiconductors, energy (production of batteries, photovoltaic cells, silicon bars), component manufacturing, electronic products, and products with high added value have received new investment and capital expansion in the first 6 months of the year.
Along with that, FDI capital is concentrated in provinces and cities with advantages in attracting FDI such as good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion. Including Bac Ninh, Ba Ria - Vung Tau, Quang Ninh, Hanoi, Hai Phong, Ho Chi Minh City, Dong Nai, .... Investment partners are mainly traditional partners of Vietnam in Asia such as Singapore, Japan, Hong Kong (China), Korea, China ...
3 Key Elements to Keeping a Positive Pace
According to the Ministry of Planning and Investment, the world economy in 2024 is forecast to recover weakly and face many major risks and challenges due to complicated developments after the COVID-19 pandemic, geopolitical instability and competition between major countries continue to create changes and impact the global economy in the medium and long term.
New standards and even interventions by some governments to guide investment activities may influence FDI trends. FDI flows are growing slowly and are increasingly concentrated among countries with geopolitical links, especially in strategic sectors.
However, according to the current assessment of many domestic and foreign financial institutions, Vietnam's prospects for attracting FDI this year will maintain a positive pace thanks to three core factors, including: (i) The important and increasingly strengthened role in the supply chain diversification strategy of multinational manufacturers; (ii) Vietnam's economic growth recovering more positively this year; (iii) stable macro-economy.
In addition, Vietnam has the potential to invest in many cutting-edge industries. The technology sector is undergoing a lot of innovation and digitization. Similarly, the renewable energy sector is attracting attention, with an increasing focus on clean energy sources such as solar and wind power to sustainably enhance Vietnam’s electricity supply.
At the same time, investors' confidence in Vietnam continues to be strengthened, with existing investors confident 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.
Not only that, Vietnam's position in the electricity and electronics supply chain is increasingly consolidated, so there is a tendency for many corporations producing electronic products to come to Vietnam.
However, the Ministry of Planning and Investment also stated that our country must actively overcome some current bottlenecks: (i) Urgently prepare skilled human resources, especially in the field of semiconductor electronics; (ii) overcome local power shortages in some localities with many electronics industry projects; (iii) review procedures to simplify and shorten processing time, especially procedures after granting investment registration certificates such as construction permits, fire prevention and fighting permits, etc.
The Government and the Prime Minister have issued timely instructions so that in the coming time, all levels and sectors will focus on drastic solutions to resolve these bottlenecks. Accordingly, there will be positive impacts on the results of attracting foreign investment in the last 6 months of 2024, continuing to maintain positive growth momentum, reaching the same level or higher than in 2023./.
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