FDI forecast to recover in 2022

Saturday, Dec 25, 2021 08:28

FDI registered in Viet Nam reached US$26.46 billion as of November 20. — VNA/VNS Photo

A recovery in the global investment flow will open up a bright future for Viet Nam’s investment attraction, according to experts.

Nguyen Anh Duong, director of the general research department under the Central Institute for Economic Management (CIEM), said that the fact that Viet Nam was among countries with a positive economic outlook in 2022 and recovery momentum in the Asian production network would make an important contribution to accelerating foreign investment.

Thargbodee Serng Adichaiwit, deputy chair of the Thai Chamber of Commerce and Industry, said that Viet Nam’s economic growth could double in 2022 compared to this year, thus making Thai investors pour more capital into the country going forward.

Many Thai businesses want to invest in Viet Nam when the pandemic is under better control. They have faith in Viet Nam due to its large consumer market and commitments to improve its business climate, according to the Thai businessman.

Foreign direct investment (FDI) in Viet Nam reached US$26.46 billion as of November 20, up 0.1 per cent year on year, according to the Ministry of Planning and Investment.

Total additional registered capital stood at over US$8 billion, an annual rise of 26.7 per cent.

During the period, US$14.1 billion was poured into 1,577 newly-licensed projects, up 3.76 per cent in value but down 31.8 per cent in volume over the same period last year.

The remaining investment capital was used for capital contribution and share purchases in a total 3,466 transactions.

Foreign investors landed investments in 18 sectors, with processing and manufacturing absorbing the largest amount of capital (over US$14 billion or 53 per cent), followed by power generation and distribution (over US$5.7 billion), real estate (US$2.41 billion), and wholesale and retail sales (US$1.27 billion).

It is estimated that in the last month of the year, several billion US dollars in FDI will be added to Viet Nam’s total investment attraction this year.

The move in recent days has shown a more positive trend in FDI attraction. For example, LEGO Group recently signed an agreement to invest in a US$1 billion project in Binh Duong Province.

In addition, within the framework of the visits to India and the Republic of Korea by National Assembly Chairman Vuong Dinh Hue, multi-billion-USD co-operation agreements were also signed, in which, Dai An Group in Hai Duong Province signed a memorandum of understanding on the construction of a US$500 million Pharmacy Park with India’s Sri Avantika Contractors Ltd.

Saigon Telecommunications Technology Joint Stock Company and Ecologic Engineering Private Ltd. of India signed a cooperation agreement in the fields of infrastructure development, industry and innovation with an investment value of up to US$4 billion. — VNS

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