There were positive developments of industrial parks in Vietnam in the first five months of the year, but experts still say the country should do more to attract big investors.

Vietnam needs to be more selective when receiving foreign direct investment  (FDI), and should set requirements, just as foreign investors do in exchange for being able to invest in Vietnam, experts say.

Vietnamese property technology (proptech) firms are attracting the attention of both foreign and domestic investors keen to grab a larger share of the country’s US$500-million market.

Along with many nations, the US economy is recovering, leading to a rise in the demand for goods imported from Vietnam amid the two economies witnessing their heyday in bilateral trade and investment ties on the back of various motives, 

The Ministry of Industry and Trade (MoIT) said that, while most sub-industries are covered by laws, activities in the processing and manufacturing industry have not had specific regulations.

While concerns over interruption of global supply chains linger due to serious outbreaks of COVID-19, Vietnam is attempting to remain on the front foot with continued business confidence and inflow of foreign investment.

Foreign investors from China, Thailand, and Singapore are increasingly acquiring renewable energy projects located at strategic positions from domestic enterprises.

Vietnamese people and businesses are still struggling with administrative procedures and are being held back by an unstable business environment.

In the first four months to April 20, foreign investors pumped 12.25 billion USD in Vietnam, equal to 99.3 percent of the amount recorded in the same period last year.

Enhancing the linkage between domestic and foreign-direct-investment (FDI) electronic enterprises can be an important solution to promote the development of this industry which is now dominated by the FDI sector.

Vietnam has enjoyed high export growth but experts are concerned that the main contributor is foreign direct investment (FDI).

Ho Chi Minh City received 1.45 billion USD of overseas remittances in the first three months of this year, up 10 percent over the same period last year, reported the city Committee for Overseas Vietnamese Affairs.

Vietnam has for the first time released a list of sectors which foreign investors are restricted or banned from accessing.

Rising land rent and shortages in industrial zones (IZs) may cause multinationals, which are seeking land near Hanoi and HCMC City, to hesitate to come to Vietnam.

The real estate firm of Dang Thanh Tam has attracted $1.2 billion worth of investments into its IZs within a short time, projecting a profit increase of 6-7 times in 2021 amid continued foreign capital inflow.

Although Vietnam has been improving its business and investment environment significantly throughout the last four decades, the cooperation between domestic and foreign-invested companies could be much improved.

Political stability has been seen as one of the main reasons for Vietnam’s success in recent years in terms of attracting foreign investment. 

While many developed countries have been struggling with the pandemic, Vietnam has maintained a trade surplus of nearly $1.29 billion in the first two months of 2021.

To become a developed country by 2045, Vietnam needs to obtain a GDP per capita of $20,000 per annum. As such, it needs to reach a GDP growth rate of 7.5-8 percent per annum in the next 25 years.

Although the country’s registered foreign direct investment capital went down by 15.6% on-year due to the pandemic, financial injections still managed to find their way to high-tech projects in the first two months of the year.