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coVER SToRY

city, Bac Giang, southern Binh Duong and FDI, FEB 2019 TO FEB 2021 ($ BILLION)
Tay Ninh provinces, and then Ho Chi Minh
City, according to the Foreign Investment
Agency (FIA) at the Ministry of Planning and
Investment (MPI). 6
Investors poured funds into 17 sectors in
the first two months, with manufacturing 5
and processing leading the pack with over $3
billion, or 55.7 per cent of the total. Electricity 4
production and distribution followed, with
$1.44 billion, or 26.5 per cent, then real estate 3
and science - technology with $485 million
and $153 million. 2

Maintaining attraction 1
The continuous flow of FDI reveals the
efforts made by each city and province to
attract foreign interest. Vinh Phuc, for exam- 0
ple, aims to attract $400 million in total this Feb-19 Aug-19 Feb-20 Aug-20 Feb-21
year, so took the initiative by effectively imple-
menting Resolution No. 02 from the govern-
ment on continuing to perform key tasks and Source: World Bank
solutions to improve the business environment
and national competitiveness; built and imple-
mented a project on improving its investment Asia Pacific’s Vietnam Representative Office, our hard-working employees, associates and
environment in the 2021-2025 period; and cited figures from the General Statistics Office partners, and the government.”
pushed investment promotions suitable with showing that GDP grew 2.91 per cent last As investments shift around the world,
the post-pandemic circumstances, attracting year and there was handy growth recorded Vietnam is considered internationally to be an
investors both large and small. It pulled in in key areas of industrial activity. In a group- attractive alternative, piquing the interest of
$56.38 million in FDI capital in the opening wide survey in June 2020, most of its affiliates investors with its political and macroeconomic
two months. in Vietnam have resumed operations with stability, geographic location, environmental
Mr. Pham Van Cuong, Deputy Head of social distancing conducted when necessary conditions, and human resources. Infrastructure
Dong Nai Industrial Zones, told local media and flexibility offered in working from home at industrial parks, export processing zones,
that the province’s FDI attraction has increased where possible. and economic zones around the country con-
since the beginning of the year because foreign Mr. Quang from Vina CPK said positive tinue to improve and be upgraded.
investors believe in Vietnam’s economy and business results are now being posted by MPI recently submitted to the Prime Min-
Dong Nai’s investment environment. “Dong many FIEs and they are keen to expand, view- ister for promulgation a national list of projects
Nai abides by all legal provisions and supports ing Vietnam as a second home. calling for foreign investment in the 2021-
investors in completing documents and pro- Mr. Nguyen Anh Duong, Head of the Gen- 2025 period. From 332 projects proposed by
cedures,” he was quoted as saying. “This helps eral Research Department at the Central Insti- ministries, branches, and localities, based on
foreign investors believe that Vietnam and tute for Economic Management (CIEM), told selection criteria it whittled this down to 159
Dong Nai boast a favorable production and local media that stability in the investment projects, with expected investment capital of
business environment. The province is deter- environment as well as the effective prevention more than $86 billion in total. There are 34
mined that foreign investors act as a bridge of Covid-19 lie behind foreign investors increas- projects in transportation, 37 in agriculture,
introducing and promoting our positive ing their FDI in Vietnam. “Opportunities from forestry and fisheries, 17 in production and
aspects to other investors.” free trade agreements (FTAs) such as the services, 24 in industrial park infrastructure,
Chairman of the Vietnam Association of Regional Comprehensive Economic Partnership 14 in culture, sports, and tourism, nine in
Foreign Invested Enterprises (VAFIE), Pro- (RCEP) and the Comprehensive and Progressive energy, and nine in information technology.
fessor Nguyen Mai, said FDI attraction in Agreement for Trans-Pacific Partnership In order to take advantage of the opportunities
early 2021 shows that expectations over a (CPTPP) encourage foreign investors to increase and advantages, the government has taken
new wave of FDI are becoming a reality. “But their presence in the country,” he added. the initiative in recent years and adopted
this will depend a great deal on the efforts of A report on the EU-ASEAN Business Coun- many measures to bolster FDI attraction.
local authorities to prioritize quality over cil’s sixth business sentiment survey, released Although registered FDI fell 25 per cent
quantity,” he added. “Local authorities must last October, showed that although there has year-on-year, a highlight of 2020 was addi-
improve their capacity in project appraisal been a decline in positive perceptions of ASEAN’s tional capital reaching over $6.4 billion, a
and acquire thorough information to select business environment, 72 per cent of EU respon- 10.6 per cent increase against 2019. In the
appropriate investors and projects under the dents in Vietnam said they have plans to expand. first two months of 2021, additional capital
direction of the government.” Satisfaction with the government’s response stood at $1.61 billion, up 2.5-fold year-on-
MPI has said many foreign-invested enter- to Covid-19 is one of the leading reasons in year. FDI disbursement was $2.5 billion, up 2
prises (FIEs) in the country are slowly recov- making the EU business community confident per cent year-on-year. Economists and analysts
ering post-pandemic and are maintaining about such plans. “Confidence in the investment believe there is reason to be optimistic that
business and production activities and, more environment and market prospects are leading Vietnam will attract substantial sums of FDI
importantly, new investors are expressing an factors in Piaggio looking to expanding its this year. The impressive numbers in January
interest in coming to Vietnam. Mr. Kazuo investment in Vietnam,” Mr. Fiume was quoted and February confirm that the country remains
Kusakabe, Chief Representative of Toshiba as saying. “We have built a strong bond with an attractive investment destination. %

APRIL 2021 | VIETNAM ECONOMIC TIMES | 19