Vietnam has attracted nearly $500 billion in registered Foreign Direct Investment (FDI) over the span of nearly four decades since initiating economic liberalization. The Ha Noi Moi newspaper recently analyzed that enhancing the quality of investments stands out as a crucial objective for propelling into a new phase of growth.
As per the General Statistics Office, the first quarter of 2024 witnessed a significant surge in FDI, reaching close to $6.17 billion, marking a 13.4% increase compared to the previous year. Moreover, FDI disbursements during this period amounted to $4.63 billion, indicating a 7.1% annual rise, marking the highest quarterly disbursement in the past five years.
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Presently, the FDI sector plays a pivotal role in Vietnam’s economy, generating over 2 million employment opportunities. Additionally, it contributes to more than 70% of the nation’s total export turnover, approximately 50% of industrial output, and over 20% of GDP. Notably, around 80% of foreign enterprises operating in the country have adopted ESG (Environmental, Social, and Governance) strategies.
The article highlights a shift in focus among international investors towards high-tech and eco-friendly sectors, aligning with Vietnam’s sustainable development objectives. Noteworthy is the surge in visits by business delegations exploring opportunities in high-tech, clean energy, and circular economy initiatives, with a notable interest in semiconductor production. The government’s commitment to training 50,000 high-quality engineers by 2030 further underscores this strategic shift.
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Photo: Olivier OchanineRecognizing the pivotal role of FDI in economic growth, the Prime Minister issued Decision No. 667/QD-TTg on June 2, 2022, endorsing a foreign investment cooperation strategy for the period 2021-2030. Emphasis is laid on attracting high value-added foreign-funded projects integrating advanced technology, modern management practices, and fostering positive spillover effects in the global production and supply chain.
Minister of Information and Communications, Nguyen Manh Hung, emphasizes Vietnam’s proactive efforts in cultivating an ecosystem conducive to semiconductor industry development, welcoming foreign investor participation. Simultaneously, endeavors are underway to ensure a skilled workforce to meet the requirements of associated projects.
The National Innovation Center (NIC) is actively collaborating with domestic and international technology enterprises such as Viettel, FPT, Intel, and Qualcomm to foster research cooperation, talent development, and ecosystem nurturing for semiconductor manufacturing.
In a recent development, a delegation comprising 50 leading US companies across pivotal sectors like energy, aviation, technology, banking, and food, visited Vietnam to explore partnership and investment prospects. Subsequently, significant discussions took place, culminating in the signing of memoranda of understanding worth hundreds of millions of dollars.
The Ministry of Planning and Investment emphasizes Vietnam’s potential and strategic geographical position within the global supply chain, positioning it favorably to attract and leverage foreign capital inflows for rapid and sustainable development.
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Source: Vietnam Insider