return icon

FDI relocation "wave" still unclear as Vietnam faces competition from India, Thailand, Indonesia

Vietnam has a great opportunity to receive new FDI, but it has been warned of the ‘the other side of the coin’.

According to the General Statistics Office (GSO), foreign investors registered $15.7 billion of FDI in the first six months of the year, a 15.1 percent decrease compared with the same period last year.






As many as 1,418 new investment projects were licensed with total registered capital of $8.5 billion.

This included $8.5 billion worth of 1,418 newly registered projects, which represented a decrease of 17.7 percent in number of projects and the increase of 13.8 percent in registered capital.

Singapore was the biggest investor with $4.3 billion worth of investment capital, which accounted for 51.3 percent of capital of newly registered capital, followed by China, Taiwan and Hong Kong.

Singapore was the biggest investor with $4.3 billion worth of investment capital, which accounted for 51.3 percent of capital of newly registered capital, followed by China, Taiwan and Hong Kong.

According to Pham Dinh Thuy from GSO, the first signs of the tendency of relocating FDI to East Asia and Southeast Asia, including Vietnam, were seen in 2018.

He agrees with analysts that Vietnam can receive investment benefits from the US-China trade war and Covid-19, but it will still need time to observe and analyze statistics to assess the movement.

Foreign invested enterprises (FIEs) receive big benefits from Vietnam’s policies which allow them to enjoy low taxes and access land and human resources at low costs.

However, other regional countries also have advantages like Vietnam’s, including Indonesia, India and Thailand. Foreign investors have a large choice of which countries to set their factories.

“It is not simple to relocate investment from one country to another. Investors will have to thoroughly consider the relocation costs and incentives offered by countries where they plan to move,” Thuy said.

An analyst said it takes manufacturing enterprises 2-5 years to implement the relocation, because global supply chains have been fixed for many years.

Nguyen Van Toan, deputy chair of the Vietnam Association of Foreign Invested Enterprises (VAFIEs), said that Vietnam has a great opportunity to catch the FDI relocation wave, but it needs to reform to attract high-quality investments.

However, Toan said Vietnam needs to be very cautious when attracting FDI. “it may happen that foreign investors declare that their machines and technologies’ prices are higher than the real value to avoid tax.

“This is a type of transfer pricing, a fraud that all FDI attracting countries need to be vigilant about, ” Toan said.

Nguyen Xuan Phu, chair of Sunhouse Group’s board of management, said Vietnam at furst had to do outsourcing for foreign businesses. However, now enterprises need to upgrade, master technologies and better understand clients to build their brands and export products.

Thanh Mai


COVID-19 outbreak to accelerate relocation wave from China to Vietnam

COVID-19 outbreak to accelerate relocation wave from China to Vietnam

While COVID-19 will have a negative impact on Vietnam's economic growth in 2020, it will boost the relocation of manufacturing facilities from China to Vietnam.

Land price escalates on news about FDI 'wave'

Land price escalates on news about FDI 'wave'

“Someone said the land rent in IZs has surged to $150-200 per square meter. But rent of $100 is considered high already,” said Do Nhat Hoang, director of the Foreign Investment Agency (FIA).


New FDI approvals plunge in Q1/2023

Although the number of new FDI projects approved in the first quarter this year grew over the same period in 2022, their capital pledges edged down.

Culture Trip shares surprises while enjoying beer in Vietnam

Vietnam is one of the leading countries in beer consumption in Asia. Bia hoi (draught beer) is a favorite choice of many Vietnamese on hot summer days. But do foreign tourists know how to drink bia hoi like a local?

Vietnamese students win awards in Stanford University competition

Two first-year students from Vietnam are among the winners at Stanford University's TreeHacks - a technology competition for students. The team developed a VR glass device for debate training.

Vietnam enters Top 5 destinations for summer vacation

UK travel magazine Expedia has listed Vietnam among its Top 5 international destinations that visitors should visit this summer.

Five caves discovered in Quang Binh province

Five caves were recently discovered in Lam Hoa commune of Tuyen Hoa district in the central province of Quang Binh by experts of the British Royal Cave Association.


PM orders close coordination to remove obstables to property market


Top Vietnamese, Chinese legislators hold online talks

CAAV to trial biometric authentication at Van Don airport

Following a test operation at the Cat Bi International Airport in Haiphong City, the Civil Aviation Authority of Vietnam (CAAV) will introduce biometric authentication technology at the Van Don International Airport in Quang Ninh Province.

Vietnam considers unilateral visa waivers for more countries

The government is going to ask the National Assembly to consider granting electronic visas to citizens of all countries and territories.

Places not to be missed when traveling to Can Tho

Although Can Tho province has seen fast economic growth, it still retains the typical cultural features of the Mekong River region. Here are its most attractive places:

Mui Ne among world’s top 5 destinations for hot air balloon ride

Mui Ne, a coastal fishing town in the southcentral province of Bình Thuan, has been named among the top five best destinations for a magical hot air balloon ride, according to

Medical-equipment license applications still being processed

About 7,000 dossiers applying for licenses for circulation of medical equipment are still unhandled. These include dossiers submitted a long time ago.

VN warns against downgrading COVID-19 status due to risk of new variants

The Ministry of Health has stated that while the COVID-19 situation is currently under control within the country, the risk of new, more dangerous variants emerging is too high to downgrade the status of the virus yet.

Appeals trial of chairman of Alibaba real estate scam delayed until May

The HCM City People’s Court has decided to delay the appeals trial of Alibaba Company owners and employees who were earlier found guilty of property fraud and money laundering.

Thanglong Warriors, Rohto Saigon Heat win VBA 3x3 tournaments

Thanglong Warriors proved their power with the second title of the VBA 3x3 Prime 2023 on March 26 in Nha Trang, Khanh Hoa Province.