Viet Nam remains a charming investment destination for foreign investors

Friday, Oct 29, 2021 08:25

The 500ha Viet Nam-Singapore Industrial Park I in the southern province of Binh Duong. Singapore retained its crown as Viet Nam's largest foreign investor in the first 10 months of 2021. — Photo

Viet Nam remains a safe and attractive destination for foreign investors despite the complicated development of COVID-19 pandemic, the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment has said in its monthly report.

During the first 10 months of 2021, foreign investors registered to pump US$23.74 billion into Viet Nam, surging 1.1 per cent over the same period last year. Of the sum, over $13 billion was injected into newly-licensed projects, up 11.6 per cent year-on-year, while the remainder of over $7.09 billion came into operating projects, up 24.2 per cent.

These encouraging figures were mainly thanks to three large-scale projects licensed in the period including the Singapore-invested Long An liquefied natural gas power plant worth $3.1 billion; an additional $2.15 billion of the Korea-financed LG Display project in Hai Phong City and the Japanese O Mon II Thermal Power Plant in Can Tho City, valued at $1.31 billion, according to the FIA.

However, the pandemic still impacted the investment of foreign businesses through capital contribution and share purchases. From January to October, 3,063 projects had nearly $3.63 billion in capital contributed by foreign investors, which was down 44 per cent in the number of projects and 41 per cent in value year-on-year.

Not only had the global M&A market declined, but travel restrictions had also significantly influenced the decision-making of foreign investors, the FIA said.

Notably, while FDI commitments were on an uptrend, FDI disbursement in the period continued to decline by 4.1 per cent year-on-year to $15.15 billion. This decrease was higher than 3.5 per cent seen in the nine months.

But the pandemic has been gradually controlled while the Government and relevant agencies have drawn up many policies and solutions to remove obstacles for enterprises, besides issuing regulations and guidelines to help them adapt to the new normal situation.

Meanwhile, enterprises have gradually resumed their production and business activities, FDI disbursement is expected to improve in the last months of the year, it said.

From January to October, foreign investors poured money into 18 fields and sectors, in which manufacturing and processing took the lead with $12.74 billion, accounting for 53.7 per cent of total registered capital. Electricity production and distribution came second with $5.54 billion, or 23.3 per cent. It was followed by real estate with $2.12 billion and wholesale and retail with over $803 million.

Singapore retained its crown as Viet Nam's largest foreign investor with $6.77 billion or equivalent to 28.5 per cent of the total FDI. South Korea came next with $4.15 billion or 17.5 per cent, while Japan ranked third with $3.4 billion or 14.3 per cent.

During a monthly press conference on October 21, spokesperson of the Ministry of Foreign Affairs Le Thi Thu Hang said the Government had set up taskforces specialised in addressing concerns of businesses that have been severely affected by the pandemic.

She said Vietnamese authorities were willing to provide the maximum support for foreign businesses and investors and get all economic activities back to normal and avoid possible disruption in supply chains.

On October 1, the Government’s issued resolution No 128/NQ-CP on safe and flexible adaptation to the pandemic. That aimed to soon get socio-economic activities back to the new normal as soon as possible.

Ng Teck Yow, General Director of Gamuda Land Vietnam, told Viet Nam News that the social distancing and domestic travel restrictions continued to pose difficulties for developers who are trying to lease or sell their land or products as investors and potential occupiers can not undertake site visits to perform the touch and feel approach to conclude their decision.

"However, the roll out of the vaccinations and promises of a vaccine passport programme are instilling confidence into landlords and investors alike," he said.

"I highly appreciate and trust the actions that the Government initiated. So far, the authorities are doing an extremely good job and I trust it will be continued, we will always be here to support and encourage the required actions," he said.

The director said one of the most exciting projects his company has worked on was the virtual launch of two of our six towers at Celadon City in HCM City.

"Not only were we able to go ahead with the launch while many others opted for delays due to the pandemic, we were also the first to stage a virtual launch in Viet Nam," he said.

"More than 3,000 people watched the live stream, which is a very good turnout for a launch event, and found buyers for the 600 units launched," he added. — VNS

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