The global corporate minimum tax is unlikely to impede Viet Nam’s FDI inflows given the fact that tax incentives are not the primary attraction for setting up a factory in Viet Nam.
According to the Ministry of Planning and Investment (MPI), in the 2021-25 period, the region expects to be allocated VND320 trillion (about US413.65 billion) of State capital for infrastructure projects, up 23.3 per cent over the 2016-20 period.
Viet Nam is looking to work closely with foreign firms such as Samsung and Toyota to boost the supply of parts within the country, according to the Ministry of Industry and Trade.
This is the biggest fall in FDI inflows since the COVID-19 pandemic broke out again in the country in late April, wreaking havoc on multiple industrial parks in the northern provinces of Bac Giắng and Bắc Ninh.
With the increasing foreign investment in Việt Nam, the human resource structure will see a fundamental change since FDI generally goes into industries that require medium to very skilled workers, experts have said.
A new wave of foreign direct investment driven by global events such as the US-China trade war and the COVID-19 pandemic is imminent in Viet Nam, and it will have a much bigger impact on the economy than previous FDI...
Credit Suisse says Viet Nam''s GDP will rise 6.3 per cent next year, the
third-fastest in emerging market economies after China (6.6 per cent)
and India (7.8 per cent).
Vietnamese enterprises have a big opportunity to enter the global value
chain with several investors entering the country, Nguyen Mai, chairman
of Viet Nam Association of Foreign Invested Enterprises said.
Boasting more than half a billion people, abundant natural
resources, and a strategic geographical location, the Association of
Southeast Asian Nations (ASEAN) has the potential to become a leading
global economic force in the near future.
Foreign direct investment (FDI) inflows in Viet Nam is expected to
sharply increase in the 2014-15 period as the stable economy would
favourable conditions for the flow.
It is vital that Viet Nam improves its investment climate to increase
the flows of top-quality foreign direct investment (FDI) to the country,
when most other Asian markets have also emerged as attractive
destinations for FDI.