Many communities have received significant investments
Even though January 2023 is a month with a long New Year holiday, several overseas investors investigated and chose to grow their investments. There were 89 projects registered for adjustment around the nation, totaling 306.3 million USD in additional capital. Foreign investors contributed capital and purchased shares 204 times, for a total capital of 174.1 million USD.
Bac Giang is the province with the highest level of FDI inflows at the beginning of the year. The project “Fullian Precision Technology Factory” Ingrasys (Singapore) Pte.Ltd at Quang Chau Industrial Park (Viet Yen) in particular has a significant scale. The project is being implemented on roughly 50 hectares of land.
Another significant project is Hainan Longi Green Energy Technology Company Limited (China), which is investing in a solar panel factory with a capacity of 3,500 Mw/year. The project will start in the first quarter of 2023. The two projects’ combined registered capital is around 761 million USD.
Meanwhile, Bac Ninh is in the top rank of drawing foreign capital. In January 2023, the province attracted 20 FDI projects with a total registered capital of 123.1 million USD. There is an increase of 12 projects compared to the same period in 2022 and placed fourth nationally in attracting FDI.
In January, Hanoi had newly licensed 22 FDI projects, with a total registered capital of 2.4 million USD. 9 projects were adjusted to increase investment capital, with additional capital totaling 14.2 million USD. Foreign investors contributed capital, purchasing shares and stocks 23 times, totaling 5.2 million USD.
Hanoi is consistently at the top of the list of the favorable investment environment in the country. Besides strengthening industrial park infrastructure, the city frequently implements investment-attractive measures such as administrative reform, tax and land incentives, etc. Many significant businesses and corporations from other countries visit the city.
Working towards high-tech projects
According to the plan, attracting FDI in the 2021-2030 era would focus on high-tech projects, contemporary management, high-added value, and positive spillover effects, integrating global production and supply networks.
The fact that Vietnam has joined two new-generation free trade agreements, the CPTPP and the EVFTA, gives it a competitive advantage in attracting foreign investors. This offers a favorable environment for attracting international investment. Moreover, many significant foreign investors from Korea and Japan have recently picked Vietnam as a destination. Many significant investors from Europe, the United States, and Canada are also considering their possibilities in Vietnam’s investment environment.
Dr. Phan Huu Thang, former director of the Foreign Investment Department, stated that collaboration with potential markets must be expanded. In particular, FDI attraction must be balanced and reasonable, in line with Vietnam’s socioeconomic development plan in the coming period. Therefore a socioeconomic development plan from FDI capital is required.
To attract FDI, Tran Duy Dong, Deputy Minister of Planning and Investment, also stated that Vietnam should focus on developing service industries in depth; increasing the productivity of the service sector and the production and business sectors; completing and improving the quality of the infrastructure system; training high-quality human resources; supplementing policies to attract effective and high-quality FDI capital.
Economists believe that Vietnam must continue to improve its infrastructure, clear investment environment, and business environment. Corporations can utilize modern and environmental-friendly technologies in order to be ready to receive a new wave of investment shift.