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Dear readers,
Vietnam’s first Law on Foreign Investment was passed by the National Assembly on December 31,
1987, as a result of the “Doi Moi” (Renewal) policy from the 6th Party Congress held a year prior.
The Law marked the starting point in Vietnam’s history of attracting foreign direct investment (FDI).

It has been evaluated as an open and appealing piece of legislation, paving the way for FDI inflows
into the country and contributing significantly to economic growth and improving economic
integration both regionally and globally.

FDI has increased sharply since Vietnam joined the World Trade Organization (WTO) in 2007 and
become one of the most important sources of capital for economic development.

Under the ten-year socio-economic development strategy in the 2021-2030 period and vision to 2045
approved by the 13th National Party Congress earlier this year, Vietnam is to become a developing
country with a modern industrial base and upper-middle incomes by 2030 and a developed country
with high incomes by 2045. The strategy opens up many opportunities and prospects for foreign
partners to invest and do business in Vietnam, following a policy of “shifting the focus of the foreign
investment cooperation and attraction policy from quantity to quality, with high added value, taking
technological efficiency as the key and most important measure coupled with environmental
protection and sustainable development. Improving foreign investment efficiency with selection and
focus, prioritizing projects with advanced and new technology, modern governance, and innovation
capacity, connecting with the global production and supply chain and closely and organically linking
with the domestic economic sector,” as stated in the resolution from the Party Congress.

With advantages in long-term socio-political stability, favorable investment and business environments,
and a transparent legal corridor, in which related policies and administrative procedures are designed
to create favorable conditions for investors, as well as skilled human resources and competitive labor
costs together with synchronous infrastructure, Vietnam has been seen as an attractive destination
for foreign investors for the past 30 years and more.

Affected by the Covid-19 pandemic, especially since the fourth outbreak in April, FDI inflows into
Vietnam, though slowing down, were never truly interrupted.
As of November 20, total newly-registered capital, additional capital, and contributed capital for share
purchases by foreign investors reached $24.46 billion. It can’t be denied that FDI enterprises have made
a significant contribution to Vietnam’s socio-economic development, and the foreign-invested sector has
become part and parcel of the country’s economy.
Our Cover Story in this December issue therefore looks at FDI coming into Vietnam in the context of
Covid-19. Readers are provided with information from an array of sources regarding the current
picture of foreign investment in the country.

A sad year characterized by isolation, separation, disease, and loss caused by Covid-19, 2021 will soon
come to an end, and hopes are high that 2022 will be so much better.

A Merry Christmas and a Happy New Year to all!

DR. CHU VAN LAM
Editor-in-Chief