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COVER STORY

PHOTOS: VIET TUAN
- utilities need to be improved, while the Partnership (RCEP), which will connect well-functioning in order for investors to
workforce needs to be upskilled and better 30 per cent of the world’s population,” Mr. make their investment efficient for the
trained. It is important that local businesses Atkinson predicted. “The grouping includes mutual benefit of all. The government’s
be developed to create a vibrant and effec- ASEAN, China, Australia, and New Zealand, policies and actions must be geared towards
tive support industry for FDI enterprises. with more favorable rules of origin expected the provision of much-needed infrastruc-
Last but not least, Mr. Binh went on, to attract further investment. Thus, I expect ture, he recommended.
the way the economy was governed and to see continued growth in FDI into Viet- Despite Covid-19, foreign investors in
how investors were cared for and supported nam both in 2022 and beyond.” Vietnam expect economic resilience and a
during the pandemic meant a lot to foreign Similarly, Mr. Binh strongly believes further revival of their activities in the time
investors. Economic governance is a key that FDI will continue flowing into Viet- to come. Vietnam remains a strategic invest-
factor foreign investors consider when nam and strengthen its role as an impor- ment destination in the process of restruc-
deciding in which country to invest. tant player in the country’s economy. turing global and regional supply chains,
The greatest challenges in attracting FDI inflows will also be in line with the with a domestic market boasting the poten-
investment during the pandemic, according green growth path Vietnam has chosen. tial to attract international corporations.
to Mr. Atkinson, were twofold: closed bor- Investments are to be of higher quality In line with proactive economic integration,
ders preventing investors entering the in terms of technological, environmental, Vietnam has implemented various measures
country, and government bodies being and social and labor standards. It is also to boost FDI flows, Mr. Marko Walde,
limited in promoting Vietnam overseas. expected that more investment will be Chief Representative of the Delegation of
Technology and flexible technology, how- made in support of the net-zero carbon German Industry and Commerce in Viet-
ever, enabled deals to be done and invest- emissions target the Prime Minister nam (AHK Vietnam), observed.
ment commitments to be made. committed to at the recent COP26 gath- Many foreign businesses have consid-
ering in Glasgow. ered enlarging their supply chains to Viet-
REDRAWING THE HORIZON The government plays a crucial role nam or diversifying their operations into
It’s expected that, in 2022, Vietnam in maintaining inflows and the preference the country under a “China plus one”
will receive something of an initial surge for higher-quality investment. Government strategy, because it has an agile and
in FDI as the country starts to reopen and priorities should be on macro-economic flexible economy as well as an ability to
potential investors can visit prospective stability and improving soft infrastructure quickly respond to the ever-increasing
projects or M&A targets. In the recent elements, like a favorable business and speed of product innovation. As they have
Grant Thornton International Business investment climate with better laws and shown their determination to maintain
survey, 50 per cent of respondents in Viet- regulations and less administrative bur- operations in Vietnam, most foreign
nam were considering an M&A as a way dens. Workplace training should also be investors hope that the government will
of strengthening their financial position high on the agenda. At the same time, soon devise a clear plan for reopening
and opening up new markets. hard infrastructure like roads, railways, and economic recovery, or else investment
“Next year we will also see the benefits ports, airports, and public utilities, etc., plans will be delayed and newcomers may
from various FTAs and the entry into force must be upgraded. Both soft and hard not or cannot enter the country to study
of the Regional Comprehensive Economic infrastructure need to be adequate and investment possibilities. %

12 | VIETNAM ECONOMIC TIMES | DECEMBER 2021 www.en.vneconomy.vn