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Monday, July 22, 2024

Vietnam looks to new FDI inflows from Western Europe and North America

The Saigon Times

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HCMC – Vietnam expects to attract more foreign direct investment from Western Europe and North America in the near future, said a representative of the Ministry of Planning and Investment.

Do Van Su, vice director of the Foreign Investment Agency under the Ministry of Planning and Investment, shared this insight at the Vietnam Industrial Property Forum (VIPF) hosted by the Vietnam Investment Review on August 24.

Su noted that alongside the traditional sources of FDI inflows such as Japan, South Korea, China, and Taiwan, Vietnam is expecting to witness a surge in FDI from businesses based in Western European countries like Germany, Netherlands, France and Spain.

Explaining the diversification in FDI inflows, Su mentioned the “China Plus One” strategy adopted by multinational corporations from Japan, South Korea, Europe, and the U.S. This strategy aims to diversify risks and is further amplified by global supply chain disruptions due to the Russia-Ukraine military conflict.

In addition to renewable energy expected to attract FDI, various foreign companies specializing in manufacturing and processing also express interest in Vietnam.

Statistics from the Foreign Investment Agency reveal that over the past few years, more than 60% of FDI capital has been directed into manufacturing and processing projects in Vietnam. These projects are primarily situated in industrial parks equipped with comprehensive infrastructure and other auxiliary facilities.

In the first seven months of this year, Vietnam attracted nearly US$16.24 billion in FDI, with US$1.6 billion directed towards property projects, according to the Foreign Investment Agency’s statistics.

Bruno Jaspaert, general director of KCN DEEP C, highlighted four main factors driving Vietnam’s appeal for FDI: free trade agreements, the influx of investments stemming from the “China Plus One” strategy, reasonable land fees, and the promotion of infrastructure development.

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