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VIET NAM Viet Nam Overview
LAND OF OPPORTUNITIES Recent Socio-Economic Achievements
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FOREIGN DIRECT INVESTMENT (FDI)

Along with the open-door and integration policy, on December 29, 1987, the National
Assembly passed the Law on Foreign Investment for the first time, marking a milestone in
the attraction of foreign direct investment (FDI) inflows into Viet Nam.

Improvements to some of Viet Nam’s economic indices have also become a factor in attracting
foreign investors. According to the Global Competitiveness Report 2019, released by the World
Economic Forum (WEF), Viet Nam’s Global Competitiveness Index (GCI) rose to 67th place, up
ten places and 3.5 points compared to 2018. Viet Nam has used the Global Innovation Index
(GII) as an important management tool since 2017, which rose from 71st in 2014 to 59th in 2016.
According to the Global Innovation Index 2020, released by the World Intellectual Property
Organization, Viet Nam ranked 42nd among 131 economies for the second consecutive year.

The flow of FDI into the Association of Southeast Asian Nations (ASEAN), of which Viet Nam
is a member, went up for a fourth consecutive year, setting a record of $182 billion in 2019
from $155 billion in 2018 and accounting for 11.9% of total global FDI capital.

Viet Nam is one of the most attractive destinations in terms of FDI in ASEAN.

According to the Ministry of Planning and Investment’s Foreign Investment Agency, as of
September 20, 2021, total newly-registered, adjusted, and paid-in capital for share purchases
by foreign investors in Viet Nam reached $22.15 billion, up 4.4% against the same period last
year despite the COVID-19 pandemic. In the 2016-2020 period, total registered investment
capital in the FDI sector was estimated at $151.48 billion, and total disbursed capital was some
$92.76 billion, compared to $99 billion and $60 billion, respectively, in the 2011-2015 period.

In the first nine months of 2021, the country registered 1,216 new FDI projects with capital of
$12.5 billion, while disbursed capital stood at $13.28 billion.

FDI IN THE 2016-2021 PERIOD
45 4,500
3,883
38.95
40 4,000
35 3,147 3,500
30.8 2,741
30 2,613 28.53 3,000
26.9 26.3 2,523
25 2,500
20.38 19.98
20 19.1 2,000
Registered investment 15.8 17.5
capital ($ billion) 15 12.5 13.28 1,500
10 1,000
Disbursed capital ($ billion)
Project numbers 5 804 500
0 0
Sept.
2016 2017 2018 2019 2020
2021
Source: Foreign Investment Agency at the Ministry of Planning and Investment