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Sunday, July 21, 2024

Formidable barriers to FDI inflows

By Trung Chanh

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Inefficient infrastructure and low-skilled labor have long been regarded as obstacles to attracting foreign direct investment (FDI) in Vietnam’s Mekong Delta region. Making matters worse are bureaucratic hurdles and legal inconsistencies that pose even more formidable barriers to drawing investment into the area. Dr. Vu Tien Loc, chairman of the Vietnam International Arbitration Center (VIAC), underscores the unique importance of the Mekong Delta in the nation’s economic growth. It is currently demonstrating its potential in the face of both current and future global economic trends. Being a pivotal agricultural production hub, the Mekong Delta contributes more than 50% to the nation’s rice output, 90% to rice exports, 65% to aquaculture production, and 70% to fruit production. Moreover, it plays a critical role in the country’s trade surplus, contributing US$12.6 billion in 2022. Economist Vo Tri Thanh, former deputy director of the Central Institute for Economic Management (CIEM), has identified five sectors in the Mekong Delta with substantial investment prospects: rice and aquaculture, fruits and vegetables, tourism, and renewable energy. Despite some advancements, like the US$160 million Vinh Thanh Industrial Park Phase 1 project, led by the Vietnam-Singapore Industrial Park Group in Long An Province, which is the most attractive place […]
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