Illustrative image (Source: VNA) Hanoi (VNA) – Vietnam has proved that it is an attractive and safedestination for investors, as reflected through positive signs in foreigndirect investment (FDI) in the country in the first five months of this year,according to an official from the Ministry of Planning and Investment (MPI).
Duringthe period, newly-registered FDI capital was up 15 percent while additionalcapital increased 32 percent despite the impact of the COVID-19 pandemicworldwide, Do Nhat Hoang, head of the MPI’s Foreign Investment Agency told theVietnam News Agency (VNA).
Heattributed the increases to efforts made by businesses, drastic actions takenby the government to improve the domesticinvestment environment as well as the timely support of the government,ministries, agencies and localities to enterprises over the past time.
Hoangalso highlighted Vietnam’s success in containing the COVID-19 pandemic, which,he said, has contributed to affirming Vietnam’s attractiveness and safety ininvestment.
Theofficial expressed his hope that after Vietnam resumes international airroutes, more investors will come to Vietnam and the FDI flows will bounce back laterthis year, thus creating momentum for the years to come.
Regardingthe movement of investment flows of global groups, Hoang said the restructuringof investment has opened up opportunities for many countries, includingVietnam.
However,he added, where the investment flows are redirected to depends on the absorbingcapacity of each country and locality.
Accordingto Hoang, Vietnam has been regarded as a bright spot in the ASEAN region byinvestors thanks to its advantages of political stability, rapid andsustainable economic growth for many years, abundant workforce, big market,increasing per capita income, intensive and extensive internationalintegration, and competitive incentives, plus its geographical location in thecentre of Southeast Asia.
Inorder to attract investment, Vietnam has made continuous efforts to improve itsinvestment environment, he said, citing the National Assembly’s ratification ofrelevant laws during its latest session, which are expected to create positiveimpact on the national economy.
TheMPI has also proposed groups of solutions regarding investment promotion,project selection, investment environment improvement and incentives, theofficial added.
Askedabout the effects of the EU-Vietnam Free Trade Agreement (EVFTA) and theEU-Vietnam Investment Protection Agreement (EVIPA) that were ratified at therecent NA session, Hoang said the deals are expected to open up a new period asEuropean investors in Vietnam willbenefit from protection mechanisms and exports to the EU will enjoy special taxincentives.
Itis now a good time for businesses from the two sides to enhance theircooperation and investment, he stressed.
Hoangexpressed his belief that with the protection mechanisms and special incentivesin accordance with the two deals, along with Vietnam’s efforts to improve thedomestic investment environment, investors from the EU will pay more attentionto Vietnam and materialise benefits to be generated by the two deals./.
VNA
