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Friday, June 14, 2024

Vietnam’s 2023 FDI seen surpassing last year’s figures: KBSV

The Saigon Times

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HCMC – Foreign direct investment (FDI) into Vietnam is poised to remain stable and even surpass 2022 levels due to a combination of domestic and international factors, reports KB Securities Vietnam JSC (KBSV) in its fourth-quarter economic outlook.

Vietnam has been actively working to attract foreign investment by offering attractive incentive packages and fostering a favorable business environment.

The country’s stable political and economic climate, strategic geographical location for investment, abundant labor force, and various signed free trade agreements make it increasingly appealing to investors.

Furthermore, Vietnam is benefiting from the ongoing shift of manufacturing operations out of China, with its stable currency, the dong, compared to China’s yuan, making it a more favorable business environment. Enhanced comprehensive strategic relations with the U.S. are also expected to indirectly attract more FDI from the U.S. to Vietnam.

The rebound in European business confidence in Vietnam is evident, with the business confidence index rising to 45.1 points in the third quarter.

In the first nine months of the year, Vietnam attracted total registered FDI capital of US$20.21 billion, a 7.7% increase compared to the same period last year. FDI disbursements also rose by 2.2%, reaching US$15.91 billion, the highest level since 2017. The Foreign Investment Department at the Ministry of Planning and Investment had anticipated this year’s FDI to reach between US$36-38 billion, with disbursements estimated at US$22-23 billion.

The total registered FDI in 2022 was US$27.72 billion, with disbursements of US$22.4 billion. This steady increase indicates that FDI businesses investing in Vietnam are not only recovering but also expanding their operations.

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