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COVER STORY

PHOTOS: VIET TUAN
factories and suppliers being located where attracting FDI, despite the pandemic being total and this needs to be addressed over
major outbreaks of Covid-19 had been unpredictable. “Vietnam is at the forefront the longer term. The continued trade sur-
reported, it encountered some difficulties of the repositioning of production invest- pluses of the FDI sector fail to bring much
in supplying parts and accessories, which ment by many multinational companies,” added value to the local economy. Along
affected production. However, thanks to he added. “It is expected that FDI will with support from the government, domes-
the support from the Vietnamese Govern- continue to grow as countries gradually tic enterprises are also making efforts to
ment and local authorities, the difficulties reopen their economies and adapt to the increase their competitiveness with their
were quickly resolved to ensure uninter- ‘new normal’.” FDI counterparts.
rupted production. The results of the survey to determine The NCIF, meanwhile, has suggested
Vietnam remains an attractive desti- the latest Business Climate Index (BCI) from a number of measures to boost the export
nation for FDI enterprises, which in turn the European Chamber of Commerce in activities of the FDI sector even further.
are a driving force for exports. In the open- Vietnam (EuroCham) shows that European The first is regarding the organization of
ing month of 2022, FDI inflows into the businesses are optimistic about Vietnam’s exports, with market research to be con-
country stood at $2.1 billion, up 4.2 per trade and investment environment. European ducted by a specialized department. Market
cent year-on-year, according to MPI. Mr. business leaders are also more confident selection should also be left to this depart-
Do Nhat Hoang, Director of the Foreign about the country’s prospects. Forty-three ment. Businesses need to diversify export
Investment Agency (FIA) at MPI, said per cent plan to increase their investment in products and methods to maximize
Vietnam holds a great deal of promise in the first quarter, compared to just 17 per demand, increase business capacity, and
cent in the fourth quarter of 2021. expand markets. FDI enterprises also need
The speed of Vietnam’s vaccination to actively research domestic market
campaign and pandemic prevention and demand to identify suppliers with the
control strategy has also strengthened con- potential to meet their production needs.
fidence among foreign investors about its Secondly, businesses need to adopt meas-
business environment, despite the pan- ures to support and serve export activities,
demic still posing something of a threat. specifically measures such as capital exploita-
Though the opportunities to receive tion by joint ventures and associations and
large volumes of FDI are huge, the com- establishing close relationships with credit
petition is fierce among countries with institutions. To improve the efficiency of
similar appeal as Vietnam, all of which capital use, enterprises need to boost turnover.
In the opening month of seek to use external resources to maintain They also need to create or strengthen links
2022, FDI inflows into the and recover their economies. with partners and relevant agencies. Enhanc-
Many analysts are concerned, however,
ing the reputation of enterprises is also
country stood at $2.1 billion, that exports by foreign enterprises account important, to facilitate long-term business
+ 4.2 per cent year-on-year. for too high a proportion of Vietnam’s relationships in orders and contracts. %

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