Vietnam’s foreign direct investment (FDI) attraction continues to show impressive growth in July, with a marked increase in the quality of FDI capital flows due to a strategic focus on careful project selection. This was highlighted by Minister of Planning and Investment Nguyen Chi Dung at a recent Government meeting.
The Ministry of Planning and Investment’s Foreign Investment Agency reported that by the end of July, Vietnam had attracted more than $18 billion in registered FDI capital, marking a 10.9 percent increase compared to the same period in 2023. Disbursed FDI capital also saw a significant rise, reaching over $12.55 billion—an 8.4 percent increase from last year, and the highest volume of disbursed FDI in the January-July period over the last five years.
Experts from various international organizations anticipate that this momentum will continue, with projections for even greater disbursed FDI capital in the near future. This growth is largely attributed to Vietnam’s improved business environment, the execution of major infrastructure projects, and the increasing interest of foreign investors in the semiconductor industry.
Minister Dung emphasized the government’s ongoing efforts to attract high-quality FDI, particularly in large-scale, high-tech projects within the processing, manufacturing, electronics, and semiconductor sectors. The development of the semiconductor industry is especially promising, with the National Innovation Center (NIC) collaborating with both domestic and international partners to create microchip design training programs. This initiative is seen as a critical step toward Vietnam mastering semiconductor technologies.
Sophie Dao, Senior Partner at GBS, an investment consulting firm in Vietnam, expressed optimism about the country’s FDI outlook. She commented, “Vietnam’s strategic focus on high-quality, high-tech FDI projects, coupled with a strong commitment to improving infrastructure and the business environment, is key to maintaining this upward trajectory. The government’s proactive approach in reducing administrative burdens and fostering innovation in the semiconductor industry positions Vietnam as a highly attractive destination for global investors.”
In Dong Nai province, the Industrial Zones Authority (DIZA) reported over $1 billion in FDI in the first seven months of the year—46 percent higher than the planned target. The newly licensed projects are primarily in semiconductor manufacturing, electrical and electronic components, and mechanical engineering, all meeting advanced technology criteria and avoiding industries known for environmental pollution or labor-intensive practices.
Similarly, Vo Van Minh, Chairman of the Binh Duong Provincial People’s Committee, stressed the importance of continued administrative reforms and infrastructure improvements, particularly in linking airports, seaports, and major provinces with industrial centers. He also underscored the need for enhanced energy infrastructure, including the development of renewable energy projects that align with the requirements of high-tech industries and environmental protection goals.
Sophie Dao added, “The emphasis on sustainable development and renewable energy is particularly commendable. By focusing on these areas, Vietnam not only attracts high-quality FDI but also ensures that its growth is aligned with global trends in environmental sustainability.”
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Source: Vietnam Insider