Foreign businesses in Viet Nam believe the economy can recover rapidly from COVID-19 if the country deals with the pandemic “flexibly”, lives safely with it and controls it well.
Vu Tien Loc, chairman of the Viet Nam International Arbitration Centre (VIAC), told a conference held in HCM City on December 17 on helping foreign investors adapt to Viet Nam’s new business climate that the pandemic hit foreign businesses’ investment and operations this year.
According to a survey by the European Chamber of Commerce in Viet Nam (EuroCham) in August, 18 per cent of companies shifted part of their production to other countries.
Many businesses struggled to comply with social distancing and workforce accommodation requirements and transportation restrictions.
Thargbodee Serng Adichaiwit, deputy chairman of ThaiCham, said when HCM City began its reopening and the Government switched to “more flexible pandemic prevention” measures, Thai businesses in the city quickly resumed their activities though they too had been hit badly.
If the Government continues with its strategy of living safely with the pandemic, Viet Nam would soon recover and attract FDI, he claimed.
“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 commitment to improve its business climate.”
Catherine Tran, director of consultancy company Leong Lee International Co., Ltd., said authorities have helped businesses quickly resume operations, but also the pandemic has pushed businesses into improving their ability to make flexible long-term plans.
Cao Thi Phi Van, deputy director of the Investment and Trade Promotion Centre (ITPC) of HCM City, said that this year is an extremely difficult year for the city and the business community as well.
However, FDI flow into the city has been at highest level among localities nationwide with nearly US$49 billion, accounting for 12.1 per cent of total FDI poured into Viet Nam, she said, adding that the city has still played the role of an economic motivation of the country by contributing over 22 per cent to the national GDP and more than 26 per cent to the State budget.
VIAC Chairman Loc said that in 2021, FDI firms have been greatly affected by COVID-19 pandemic. As of November 2021, total FDI poured into Viet Nam reached $26.46 billion. However, only $15.5 billion had been disbursed, down 4.1 per cent year on year, he noted.
Loc said FDI is expected to improve in 2022. — VNS