Business

FDI – bright spot of Vietnam’s economy amid COVID-19

The Vietnam Association of Foreign Invested Enterprises (VAFIE) released an annual report on foreign investment in Vietnam last year at a meeting in Hanoi on May 10.
FDI – bright spot of Vietnam’s economy amid COVID-19 ảnh 1At the meeting to release the report (Photo: VNA)
Hanoi (VNA) – The Vietnam Association ofForeign Invested Enterprises (VAFIE) released an annual report on foreign investment in Vietnam last year at a meeting in Hanoi on May 10.

The report was made with the cooperation of KPMGVietnam that provides independent audit services and the support of the ForeignInvestment Agency under the Ministry of Planning and Investment, Fiin Group andsome economists, according to VAFIE Vice President Nguyen Anh Tuan.

The 250-page report, in both Vietnamese and English,is expected to be useful for policy-making agencies, research and traininginstitutions, FDI firms and international investors, he said.

VAFIE President Nguyen Mai said foreign investment is the silver lining inVietnam's economic picture amid the adverse impacts of the COVID-19 pandemic on the national andglobal economy.

He, however, pointed out outstanding problems during the attractionand use of FDI such as the modest number of high-tech projects from the US andEurope. Besides, contributions to the State budget of many FDI enterprises did not match their investment scale and the incentives they are entitled to. The structure of FDI in terms of regions and localities remains unbalanced, and too few businesses established research and development (R&D)centres.

Noting that the Politburo issued Resolution No. 50-NQ/TW datedAugust 20, 2019 on orientations to consolidate institutions and policies inorder to raise the quality and efficiency of foreign investment by 2030, Mai said the VAFIE realised the need for a report on FDI in Vietnam, hence the release of the report. 

According to VAFIE, since the National Assembly passed theLaw on Foreign Investment in Vietnam in 1987, the foreign-invested economicsector has continuously developed, significantly contributing to nationaleconomic growth and growth model reform towards industrialisation and modernisation,accelerating Vietnam’s international economic integration and improving itsposition in the world.

The FDI sector now accounts for around 25 percent oftotal social investment, 55 percent of total industrial production valuein Vietnam, and more than 70 percent of the country’s export revenue.

It has generated direct jobs for 4.6 millionpeople or more than 7 percent of the country’s workforce, and indirectly createdjobs for millions of others./.

VNA
#Vietnam Association of Foreign Invested Enterprises #foreign investment #KPMG Vietnam #Foreign Investment Agency #Vietnam #VietnamPlus #Vietnam news
Follow VietnamPlus

Related News

FDI channeled into Binh Duong quadruples

FDI channeled into Binh Duong quadruples

Foreign direct investment (FDI) flowing into the southern province of Binh Duong neared 1.8 billion USD in the first four months of this year, four times higher than in 2021.
Vietnam draws over 10.8 billion USD of FDI in four months

Vietnam draws over 10.8 billion USD of FDI in four months

Vietnam attracted over 10.8 billion USD of foreign direct investment (FDI) in the first four months of this year, equivalent to 88 percent of the amount recorded in the same period last year, according to the Ministry of Planning and Investment.

See more

Key export sectors such as textiles – garments, footwear and furniture, along with many signature products of Da Nang, have strong potential to expand their markets through online export channels. (Photo: VNA)

Da Nang seeks to boost online exports

To help businesses go global, Da Nang is shifting from supporting individual online activities to developing an integrated ecosystem covering products, branding, platforms, payments, logistics, legal issues and market information. This is also part of the city’s e-commerce development orientation for 2026-2030, which identifies e-commerce as an important component of the digital economy.

Deputy Minister of Foreign Affairs Le Thi Thu Hang receives Rolf Mutzenich, a member of the Foreign Affairs Committee of the German Bundestag, in Hanoi on August 18. (Photo: baoquocte.vn)

Vietnam welcomes German firms’ expansion

Vietnam welcomes and stands ready to create favourable conditions for German businesses to expand their investment and operations in the country, particularly in infrastructure, smart seaports, renewable energy, high-speed railways, science and technology, and high-quality human resource training.

Khanh Hoa province has the largest sheep population in Vietnam, with around 100,000 individuals. (Photo: VNA)

Khanh Hoa province explores Halal ecosystem development

Khanh Hoa aims to estabish itself as a Halal-friendly destination while supporting businesses in expanding export markets, attracting strategic partners and investors, and drawing projects from countries with strong Halal logistics, tourism, manufacturing, processing and agriculture sectors.

The proportion of Vietnamese goods remains high at supermarkets. (Photo: VNA)

Vietnamese brands win over domestic consumers to go global

Amid increasingly fierce global competition, the goal is no longer simply to increase domestic consumption of Vietnamese goods, but to develop strong Vietnamese brands capable of winning consumers through quality, innovation and added value, thereby creating a stepping stone for expansion into international markets.

Illustrative image (Photo: VNA)

Automated VAT refunds to be rolled out from December

As of August 11, VAT refunds rose 32% from a year earlier, reaching 64.4% of the full-year estimate. Tax authorities issued 11,627 refund decisions totaling 111.726 trillion VND (4.26 billion USD), up 9% by volume. The payouts improved cash flow for companies and supported production, trade and exports.

ST25 rice is the centrepiece of the Vietnam Goods Week at Selgros. (Photo: VNA)

ST25 rice officially enters Selgros wholesale supermarket chain in Germany

The placement of ST25 rice on Selgros shelves not only creates an additional opportunity for German consumers to access Vietnamese rice products, but also contributes to efforts to increase the added value of Vietnamese agricultural products by shifting the focus from volume to quality, branding and value.

Trains on the elevated section of the Cau Giay – Nhon route in Hanoi provide convenient transportation for local residents. (Photo: VNA)

Multimodal connectivity to drive Vietnam’s transport infrastructure

Under the proposed approach, roads would serve mainly as connectors and for first- and last-mile transport; railways would handle large volumes over long distances; maritime transport would serve import and export cargo; inland waterways would carry large volumes at low cost; and air transport would focus on fast delivery and high-value goods.

Amata Industrial Park in Dong Nai city (Photo: VNA)

Green shift powers investment in southeast Vietnam

The Amata Industrial Park in Dong Nai City, established 32 years ago and covering more than 500ha, is home to over 160 domestic and foreign businesses. Selected in 2020 as one of three national pilot sites for conversion into an eco-industrial park, Amata has raised its compliance with the international eco-industrial park framework from 41% to 86% in 2024, and is working towards becoming Dong Nai's first certified eco-industrial park.