Vietnam Attracts Nearly $500 Billion in FDI Over Four Decades

Vietnam’s strides in attracting Foreign Direct Investment (FDI) have been substantial, nearing $500 billion over almost four decades of economic liberalization.

The recent analysis by the Ha Noi Moi newspaper underscores the critical importance of enhancing investment quality for propelling the nation into a new phase of growth.

The first quarter of 2024 witnessed a notable surge in FDI, reaching almost $6.17 billion, marking a significant 13.4% increase compared to the previous year. Moreover, FDI disbursements during this period amounted to $4.63 billion, representing a 7.1% annual rise, and marked the highest quarterly disbursement in the past five years.

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Currently, the FDI sector is a cornerstone of Vietnam’s economy, generating over 2 million employment opportunities and contributing significantly to various economic indicators. Notably, around 80% of foreign enterprises in the country have embraced ESG (Environmental, Social, and Governance) strategies, underlining a commitment to sustainable practices.

The article also highlights a notable shift in focus among international investors towards high-tech and environmentally friendly sectors, aligning with Vietnam’s sustainable development goals. Increased interest in semiconductor production and clean energy projects has been observed, with the government’s initiative to train 50,000 high-quality engineers by 2030 supporting this strategic shift.

Recognizing the pivotal role of FDI in economic growth, the Prime Minister’s Decision No. 667/QD-TTg on June 2, 2022, outlines a foreign investment cooperation strategy for 2021-2030. The emphasis is on attracting high-value foreign-funded projects with advanced technology and fostering positive spillover effects in the global production chain.

Minister of Information and Communications, Nguyen Manh Hung, highlights Vietnam’s proactive efforts to cultivate an ecosystem conducive to semiconductor industry development, inviting foreign investor participation. Simultaneously, efforts are underway to ensure a skilled workforce to meet project requirements.

The National Innovation Center (NIC) collaborates actively with both domestic and international technology enterprises to promote research cooperation and talent development for semiconductor manufacturing.

In a recent development, a delegation of 50 leading US companies visited Vietnam across key sectors such as energy, aviation, technology, banking, and food, exploring partnership and investment opportunities. Subsequently, significant discussions ensued, leading to the signing of memoranda of understanding worth hundreds of millions of dollars.

The Ministry of Planning and Investment emphasizes Vietnam’s potential and strategic geographical position within the global supply chain, positioning it favorably to attract and leverage foreign capital inflows for rapid and sustainable development.