return icon Vietnamnet.vn

Despite Covid-19, Vietnam still attracts foreign direct investments

Despite the 21 percent decrease in FDI decrease in Q1, Kizuna, which leases ready-made workshops in Long An province, is still moving ahead with its plan to expand production.

The company is hurrying to implement Kizuna – Ready Serviced Space project in Kizuna 3 area in Can Giuoc district.

 

{keywords}

 

 

 

Once completed, the 80,000 square meters of ready-made workshops will be put into operation by Q4 2020, ready to receive FDI to flow into Vietnam in the post-Covid-19 period.

GSO reported that in the first three months of the year, Vietnam attracted $8.6 billion worth of FDI, a decrease of 21 percent compared with the same period last year.

However, this is not the reason for investors to stop their production and business expansion plans.

Shirakawa Satoko from Kizuna, in charge of Japanese and English speaking enterprises, believes that FDI would continue to flow into Vietnam if Vietnam can control the epidemic well and overcome the crisis at the lowest costs.

Despite the 21 percent decrease in FDI decrease in Q1, Kizuna, which leases ready-made workshops in Long An province, is still moving ahead with its plan to expand production.

She believes that Vietnam would see a new wave of Japanese flocking to Vietnam, saying that the US-China trade war and Covid-19 will speed up Japanese enterprises’ process of diversifying activities to ease reliance on the Chinese market.


Most recently, Japan decided to reserve $2.2 billion of the country’s record bailout to help Japanese manufacturers relocate their production from China in the context of Covid having breaking up the global supply chain.

A survey conducted by Tokyo Shoko found that 37 percent out of 2,600 Japanese enterprises want to relocate their factories out of China.

Not only Japanese, but European countries are also considering leaving China. A new survey, cited by China Morning Post (SCMP), has found disappointing business results: half of polled businesses said their profit margin would decrease by 20 percent.

In late 2019, when the news about the US-China trade war topped all newspapers, leading US technology firms stated they were considering relocating production to Vietnam. Analysts believe that when Covid-19 ends, this will be the time for them to accelerate relocation.

Nikkei ASEAN Review reported that Google and Microsoft are eyeing Vietnam and Thailand for their production to make next-generation mobile phone models, laptops and other products.

Google is thought to make Pixel 4A and 5A models in Vietnam, while Microsoft plans to make tablets and PCs in the north of Vietnam.

Affirming that Vietnam remains attractive in the eyes of foreign investors, an analyst said the way the government of Vietnam has fought the epidemic is one of the factors that will persuade investors to come to Vietnam. 

Mai Lan

 

Harnessing further FDI to Vietnam

Harnessing further FDI to Vietnam

Since national reunification in 1975, Vietnam’s economy has grown from strength to strength. Senior economist Nguyen Mai writes about how the economy has developed in that time, with foreign direct investment serving as one of the key driving forces.

Vietnam attracts 12.33 billion USD in FDI in four months

Vietnam attracts 12.33 billion USD in FDI in four months

Vietnam attracted $12.33 billion in foreign direct investment (FDI) in the first four months of 2020, a year-on-year decrease of 15.5 percent due to the impact of the COVID-19 pandemic.

MORE NEWS

Curbing inflation: the optimal goal of monetary and fiscal policies

Monetary and fiscal policies have been tightened to fight inflation in Vietnam (though it is among the lowest in the world), instead of aiming to recover production and boost growth, which is needed after several years of pandemic.

Businesses seek capital as banks run out of ‘credit quota’

Businesses in many fields have voiced their concerns about the lack of capital from banks.

Businesses complain about customs procedures, import taxes

Businesses still must visit ministries in Hanoi to complete paperwork, which they consider a big waste of time and money. They are also concerned about high import taxes.

Vietnam contributes to International Law Commission

Vietnamese Ambassador Nguyen Hong Thao has pledged to make more contributions to the progress and development of international law, for peace, friendship, cooperation and sustainable development worldwide.

Pencak silat fighter enjoys golden year

Pencak silat fighter Quang Thi Thu Nghia has had amazing year of competition when she has won titles from all competitions that she took part in.

Pop singer to compete at MTV Europe Music Awards

Pop singer Pham Dinh Thai Ngan from HCM City will represent Vietnam at the MTV Europe Music Awards (MTV EMA) 2022.

PM hosts national committee on digital transformation’s third session

Prime Minister Pham Minh Chinh chaired the third meeting of the National Committee on Digital Transformation on August 8 to assess digital transformation pace during the first half of 2022 and devise tasks for the time ahead.

Liem to face off against chess king Carlsen at FTX Crypto Cup

Vietnam’s leading chess player Le Quang Liem has revealed that he will take on Norwegian chess king Magnus Carlsen at the FTX Crypto Cup which is scheduled to take place in Miami, USA, from August 15 to August 21.

Vietnam ranks third overall at ASEAN Para Games 2022

Vietnamese athletes bagged seven more gold medals on August 5, the last competition day of the ASEAN Para Games 2022, retaining their third place in the medal tally.

Corporate bond market struggling with challenges

The size of the corporate bond market is estimated at some VND1,374 trillion, equivalent to 15% of GDP. The Government aims to raise this figure to 20% by 2025.

President requires greater efforts to promote value of Ngoc Linh ginseng

Ngoc Linh ginseng deserves the "National treasure" title, and it is necessary to strongly promote the role of this treasure in improving people's livelihoods, President Nguyen Xuan Phuc said .

EVFTA outpaces CPTPP in preference utilisation rate

The utilisation rate of tax incentives set out in the EU-Vietnam Free Trade Agreement (EVFTA) during Q1 soared by over 32%, representing a four-fold rise compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Refusal to issue visas to new VN passport causes problems for travel firms

The rejection of Vietnam’s new passport by some EU member countries is affecting HCM City tourism companies since their customers are unable to travel to those countries.

Vietnam set to scrap COVID quarantine for imported processed seafood

The Ministry of Agriculture and Rural Development has removed COVID-related quarantine requirements for frozen processed seafood products imported for the purpose of reprocessing for export.

HCM City seeks to boost technology transfer from universities

Huynh Kim Tuoc, managing director of Sai Gon Innovation Hub's (SiHub) Start-up Support Centre under the HCM City Department of Science and Technology, affirmed Vietnam holds tremendous potential for technology development
back_to_top