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BUSINESS REPORT

PHOTO: VIET TUAN

from the Ministry of Planning and Investment
A PARTNER (MPI), as of December 2020, the country had
172 valid investment projects with total reg-
istered capital of $2.058 billion, ranking it
OF POTENTIAL 19th out of 139 countries and territories
directly investing in Vietnam. “Switzerland
is one of the largest foreign investors in the
world, with total capital standing at about
Higher levels of investment are expected to come from $1.6 trillion as of the end of 2019,” Mr. Nguyen
Switzerland as Vietnam’s advantages come into play. Duc Thuong, Trade Counsellor at the Embassy
of Vietnam in Switzerland, told VET. “Its
T LINH NGOC & PHUONG HOA REPORT
investment in Vietnam accounts for only a
very small proportion of the total, so there is
significant potential to attract more.”

Investment situation
Switzerland ranks sixth in Europe (after
the Netherlands, the UK, France, Luxembourg,
and Germany) in investing in Vietnam, accord-
ith a production site in southern including the EU, Japan, and South Korea. ing to MPI. Data on Swiss FDI in the country
Dong Nai province since 1995, During its quarter-century in Vietnam, since 2015 shows that although project num-
W Nestlé is one of the largest Swiss Nestlé set a long-term vision of pursuing sus- bers have continuously increased, from 110
investors in Vietnam, operating six facilities tainable development as a driving force of its in 2015 to 172 in 2020, total registered capital
with investment totaling $650 million. Nestlé business operations. “We understand that by has not increased that much, rising from
Vietnam has increasingly contributed to raising so doing we can better serve the needs and $1.99 billion in 2015 to just $2.05 billion in
the value of Vietnamese agricultural products tastes of Vietnamese consumers and develop 2020. “Project numbers increasing substan-
through value-added processing and exports. a suitable and diverse portfolio that provides tially while capital only rises slightly shows
In 2020, it exported the largest volume of healthier products and contributes to enhanc- that most new projects are not large in scale,”
Maggi products ever, including a wide range ing lives and the country’s socio-economic Mr. Thuong said.
of culinary products, from Maggi Soya Sauce development,” said Mr. Will Mackereth, Supply There are currently about 100 Swiss enter-
and Maggi Oyster Sauce to Maggi Bouillon, Chain Director at Nestlé Vietnam. “Our efforts prises operating in Vietnam, and Swiss invest-
for a 25 per cent increase against 2019. Its so far have been recognized by the govern- ment can be found in many localities around
coffee exports rose 20 per cent, with Nescafé ment, ministries, and other stakeholders.” the country. Most Swiss investors choose to
products made locally now widely accepted Overall investment by Swiss enterprises be 100 per cent foreign-owned when investing
by consumers in 25 markets the world over, in Vietnam is increasing. According to data in Vietnam. About 80 per cent of investment

26 | VIETNAM ECONOMIC TIMES | APRIL 2021