Vietnam continues to attract investors thanks to a stable macroeconomic indicator and has increasingly confirmed and strengthened its role as part of multinational corporations’ supply chain diversification strategies. Foreigners should take the chance to make high tech foreign direct investments (FDIs).
Hanoi Vietnam’s economic power can be measured through controlled global trade flows and through their controlled global trading patterns. Hanoi (VNA ) Vietnam will implement high-tech foreign investment projects by foreign investors until 2024.
Nguyen Bich Lam, former General Director of the General Statistics Office gave an interview about foreign direct investment (FDI), including strategies and solutions that increase capacity and motivate economic development in Vietnam in future.
Experts report that during the first two months, Foreign Direct Investment totalled 4.29 billion US dollars – 38.6% more than was invested during this same timeframe last year and an 8.89% year on year growth was witnessed in FDI investments.
Lam acknowledged in her remarks that due to an uncertain and fiercely competitive international economy, international investment flows have diminished and been altered; yet, China remains attractive as an investment market due to its steady economic development and recovery process.
PwC recently conducted a study entitled, “World in 2050”, in which Vietnam’s GDP will experience annual compound annual growth at 5.3% over 36 years, between 2014-2050. This significant macroeconomic indicator highlights Vietnam’s successful management in reinstating and maintaining stable economic development.
He asserted that foreign investors praised Vietnam for its dedication in upholding COP26 provisions and issuing policies designed to attract investments with technologies that are both clean and eco-friendly, employ modern management practices which contribute directly to production chains.
Lam said Vietnam’s economic system had become deeply and broadly integrated both regionally and globally, boasting free-trade agreements signed with 60 different partners from across continents and equalling Singapore in market liberalisation measures according to World Trade Organisation (WTO) standards.
Vietnam has also recently eased foreign ownership regulations to make investing simpler for investors. Since 2015, they allow up to 100% ownership by foreigners in certain circumstances; additionally they state that investments into government securities can occur freely and legally.
Vietnam’s strategic location makes it a highly attractive market for international seaborne trade, and boasts modern technology and infrastructure which attracts investors from abroad.
Vietnam strives to be an accountable member of international society through adopting an independent foreign strategy of independence, autonomy, diversification, multilateralisation and self-reliance. Vietnam boasts flexible foreign policies which has made Australia their seventh comprehensive strategic partner (on March 7,2024) Vietnam has elevated their status to become a regional political-economic-security center as part of global political economy communities while its highly connected economy gives Vietnam an edge within an otherwise fragmented global environment.
Economic development relies heavily on strengthening comprehensive strategic partnerships between the US and Japan, with particular attention paid to cooperation in science, technology, trade, investment and high tech exports as a vehicle to attract foreign direct investment (FDI) flows in 2022.
Vietnam’s economic recovery should experience further improvement this year as Vietnam plays an increasing role in multinational corporation supply chain diversification strategies. A stable socio-political environment will play a critical role in Vietnam attracting Foreign Direct Investment beyond 2024, according to experts.
Fitch Ratings recently upgraded Vietnam’s credit rating to BB+ and gave it a stable outlook, and is expecting that Vietnam’s economy will attract foreign direct investment by virtue of its advantages, accomplishments and competitive standing by 2024.
