return icon

Vietnam urged to improve infrastructure to attract more FDI

Vietnam needed to improve its infrastructure in order to attract more FDI, a webinar heard on Monday.


Vietnam needs to pay more attention to improving its infrastructure and increasing connectivity to attract FDI. 


Themed “Capitalising on Vietnam’s Investment Opportunities Post COVID-19”, the webinar drew senior leaders from businesses and organisations across Asia, Europe and the US.

Minister of Planning and Investment Nguyen Chi Dung said that trade conflicts among major economies had forced international corporations and enterprises to relocate to avoid high taxes.

The COVID-19 pandemic and its consequences had made countries, international corporations and businesses speed up their investment restructuring plans to avoid dependence on one country or partner.

Many countries had already issued preferential policies and support packages to retain as well as attract foreign investors.

Dung said Vietnam had been taking drastic measures to meet investors’ requirements such as preparing land funds, factories, energy facilities and incentive packages for large projects that applied advanced technology. The country had also created conditions for Vietnamese businesses to join the global value chain.

“With its existing competitive advantages, strong reforms of the investment environment and increasing international position, and positive and effective anti-COVID-19 measures, Vietnam has been highly appreciated by the world community, becoming an attractive and safe investment destination for foreign investors,” he added.

In the context that global FDI is likely to decline by 40 per cent in 2020, Vietnam is looking relatively positive having attracted total registered capital of nearly US$20 billion in the first eight months of the year, with new capital increasing by 6.6 per cent and additional capital by 22.2 per cent.

“These figures are very encouraging, confirming the efforts and determination of the Government and all levels to attract foreign investment, especially high quality FDI,” he said.

The minister said Vietnam was building a 10-year development strategy with institutional breakthroughs, and infrastructure and human resources would continue to be focused on.

Sharing the idea, Governor of the State Bank of Vietnam Le Minh Hung said: “Over the past 20 years, Vietnam has been rated as an attractive destination by foreign investors thanks to many factors, including political, economic and social stability. Policies to facilitate foreign investment play a very important role.”

The Vietnamese Government has pursued this direction, but the challenges brought by the COVID-19 pandemic require the country to be more flexible in its response and take concrete and timely measures to mitigate its impacts and when possible, turn challenges into opportunities.

To seize these opportunities, the Governor said that from 2021-25, the State Bank would continue to give priority to the completion of a monetary-banking legal framework.

Specifically, the Law on Credit Institutions, Law on Deposit Insurance and new regulations will be added to help credit institutions provide a full range of financial services and products.

The central bank will strengthen banking supervision and shift from compliance inspections to risk-based supervision in accordance with international practices and standards.

“The State Bank of Vietnam will continue to ensure a stable macro environment, creating conditions for the banking system to support the economy's recovery, but still focusing on ensuring quality, operational and financial safety.”

From the perspective of an international corporation, C. K. Tong, CEO of BW Industrial Development, said Vietnam had an advantage in growth rate compared to many countries in the region. However, the country needed to pay more attention to improving its infrastructure, and increasing connectivity such as the North-South expressway, special hubs, traffic density and developing local industrial clusters to effectively attract FDI.

“Given its strong fundamentals of a young, dynamic and tech-savvy population, a growing domestic market, a rising middle class and an open economy, Vietnam continues to offer exciting investment opportunities. Many start-ups and multinational corporations have set up their operations in Vietnam to leverage its strategic connectivity and proximity to Asian economies as a gateway to grow their businesses. While COVID-19 is likely here to stay for a while, it should not prevent us from exploring the new opportunities that Vietnam can offer and attempt new strategies to build and sustain growth in the country,” said Nirukt Sapru, CEO of Vietnam and ASEAN & South Asia Cluster Markets, Standard Chartered Bank.

A survey conducted during the Standard Chartered ASEAN Business Forum 2020 showed that 38 per cent of respondents would consider Vietnam for their supply chain diversification. This was the highest ratio among ASEAN countries.

There’s little doubt that Vietnam has been getting a lot of investor attention, evidenced by the strong FDI inflow into the country in recent years.

The webminar was part of the Standard Chartered ASEAN Series, which was started by the virtual Standard Chartered ASEAN Business Forum 2020 in late August. The forum was officiated over by Prime Minister Nguyen Xuan Phuc and attracted 4,700 participants globally.  VNS

What Vietnam needs to do to attract quality FDI after Covid-19

What Vietnam needs to do to attract quality FDI after Covid-19

Speeding up infrastructure development and improving ease of doing business and vocational training are among things Vietnam can do to make itself more attractive to foreign investors post-Covid-19, according to VinaCapital.  

Post-pandemic focus for new investments

Post-pandemic focus for new investments

A series of favourable policies are expected to be issued by the government’s upcoming taskforce in the country’s bid to attract a new investment wave after the health crisis.


Hospitality providers in Hanoi Old Quarter revive

Hospitality providers in Hanoi’s Old Quarter have been gradually recovering from the COVID-19 pandemic. Since March 15, most of them have so far been brought back to life.

After discovery of fake VietGAP-certification, 12 units under probe

After local media reported about vegetables with counterfeited VietGAP certificates, the Ministry of Agriculture and Rural Development (MARD) asked for a review of 12 certification units and threatened to strictly punish any violators.

Another three Vietnamese digital platforms qualify for being popularized

Vietnam is expected to maintain its seventh place in the number of new app downloads globally.

Foreign travel website suggests 10 best things when visiting Vietnam

Kayaking in the waters of picturesque Cat Ba island and taking a food tour to sample delicacies around Ho Chi Minh City are among the 10 best things to do in Vietnam, according to UK-based travel website Time Out.

Vietnam’s coconut kingdom protects organic coconut areas by biological methods

When the trend of consuming organic products is increasingly popular, the development of organic material sources has become an urgent requirement. Protecting these sources has become a great concern of producers in many countries around the world.

Electronics industry capacity must keep up with increased investment

Vietnam needs policies to enable the electronics industry to ready its supply chain as the country becomes ever more attractive for investment, Deputy Director of the Industry Agency under the Ministry of Industry and Trade Pham Tuan Anh said.

VN central bank shifts up interest rates to combat US Fed adjustments

After the State Bank of Vietnam implemented the new operational interest rate on September 23, all joint-stock commercial banks, with the exception of state-owned ones, have adjusted the deposit interest rate for most terms.

HCM City targets international cruise tourists

Ho Chi Minh City has great potential to attract international cruise tourists as part of an effort to speed up tourism recovery post-pandemic, experts said.

Waste criteria lacking for nation’s IPs

Vietnam’s industrial parks are in the process of transitioning to more ecological models, but are struggling due to a lack of regulations on reusing treated waste and wastewater.

Vietnam experiences solid rise in production

The Vietnamese manufacturing sector rose solidly inside growth territory at the end of the third quarter of the year.

VN-Index bounces back from two-year low

The benchmark VN-Index on Wednesday regained the 1,100-point landmark after falling to a two-year low, but low liquidity may threaten the market recovery in the next sessions.

Sexual-assault victims choose to remain silent amid backlash on social media

Many travelers have told VietNamNet that they had been victims of sexual assault but later decided not to report their cases for fear of being ridiculed and blamed.

'South Korean street’ in HCM City deserted as business people leave

Amid business decline, some South Korean businessmen have gone bankrupt or shut down their business and left for their home country. It’s unclear if they will come back.

Foreign tech firms scale up operations in Vietnam

Molex, the world’s leading electronic component and connection device manufacturer, has announced a plan to expand its production facility in Hanoi with a total production area of 16,000 sq m.

Vietnam’s veggie, fruit imports from China surge

Vietnam spent some US$473 million importing vegetables and fruits from China between January and August, surging by 74% year-on-year and accounting for 38% of the country’s total veggie and fruit imports.