FDI INTO VIETNAM INCREASE: PROVING POSITIVE INVESTMENT OUTLOOK
Tuesday 09, 11 2021
FDI into Vietnam experienced a slight increase in October, after months hindered by the pandemic. The long-term prospect for investing in the country remains positive.
FDI INTO VIETNAM IN THE FIRST TEN MONTHS OF 2021
According to the Ministry of Planning and Investment, in the first ten months of 2021, more than 23.7 billion USD was invested in Vietnam from abroad, up 1.1% over the same period last year. Most investors are from Singapore, Korea, and Japan. Many provinces have also come up with flexible solutions for epidemic prevention and investment attraction. Large-scale investments were quickly di disbursed.
In Quang Ninh, in the first ten months of the year, foreign investment capital reached nearly 1 billion USD, three times higher than the same period in 2020. Although the number of newly licensed projects is less, the scale of projects is larger. Nearly 150 FDI enterprises in the area have stable production, with the first ten months' growth increasing by 10-20% over the same period.
Hai Phong and Vinh Phuc have also been attractive destinations for foreign investors. In the first ten months of this year, Vinh Phuc province attracted nearly 1 billion USD, up nearly 300% over the same period. Hai Phong city attracts about 3 billion USD, ranking third in the country after Ho Chi Minh City and Long An.
According to experts, in the coming time, foreign investment in Vietnam will skyrocket, when the pandemic is well controlled, it will be more convenient to move between countries.
FDI ENTERPRISES TAKES UP 70% OF VIETNAM EXPORT VALUE
Newly released data from the General Department of Customs show that in October 2021, the total import and export value of Vietnam's goods is estimated at 53.5 billion USD. In which, the total export value is estimated at 27.3 billion USD, and the total import value is estimated at 26.2 billion USD.
The total import-export value of Vietnam is expected to reach 537.32 billion USD in the first ten months of 2021, up 22.2% over the same period in 2020. In which, the total export value is estimated at 267, 93 billion USD, up 16.6%, and total import value was estimated at 269.38 billion USD, up 28.2%.
Vietnam's trade balance in October 2021 is estimated to have a surplus of 1.1 billion USD. In general, accumulated in the ten months of 2021, Vietnam still has a trade deficit of 1.45 billion USD, in contrast to the trade surplus of 19.63 billion USD in the ten months of the previous year.
According to the General Department of Customs, the FDI business sector accounts for 70% of the country's total import and export value. Accordingly, in the first ten months of the year, the FDI sector's import-export value was estimated at 373.65 billion USD and increased by 25.3% over the same period last year.
In which, the total export value of this business sector is estimated at 196.77 billion USD, up 20.3% over the same period in 2020, and import value is estimated at 176.88 billion USD, up 31.3%.
LONG-TERM PROSPECT EXPECTED
After two months of sharp decline due to negative impacts from the COVID-19 pandemic, FDI inflows into Vietnam rebounded in September and October 2021. Although it only a slight increase over the same period, this is a positive signal for the confidence that the FDI business sector has recovered after the interruption due to the pandemic.
According to many experts, the disruption of FDI inflows was only temporary due to the pandemic. In the medium and long term, FDI investors still believe in the prospects of the Vietnamese economy for many reasons.
Specifically, according to Ms. Dorsati Madani, World Bank Senior Economist in Vietnam, Vietnam is still among the countries with good growth while most other countries experience economic declines. It is a sign of resilience, showing that the fundamentals of Vietnam's economy are solid.
From another angle, Mr. Nguyen Minh Cuong, principal economist of the Asian Development Bank (ADB), said that when deciding to invest, businesses always research very carefully to build business establishments, factories, etc., not looking at short-term developments. Many FDI enterprises said that the Vietnamese Government had made efforts to improve the business environment. In the long term, Vietnam is still an attractive destination for foreign investors.
Although the epidemic situation due to new strains with a higher level of spread than anticipated has caused some confusion in the management process, according to ADB, at the highest level, the Government, the investors see a strong commitment to weathering the pandemic coupled with protecting businesses and the economy.
Compiled by VietnamCredit