FDI

Vietnam is seen as an increasingly attractive investment destination for many South Korean firms, supported by the country’s growing demand for high-tech products and the government’s incentives applied for the industries.

Vietnam needs to remain cautious over trading with the US as with the risk of being named as currency manipulator by the latter has not faded away, according to economist Le Dang Doanh. 

The prime minister has asked several ministries, agencies and local governments to report on the risk of the domestic real estate market being dominated by foreign entities, given the recent influx of foreign investment into the sector.

Vietnamese investors are increasing their investments in projects abroad, especially in developed countries, such as Australia and the United States.

The medium-term outlook for the Vietnamese economy is broadly positive despite persistent downside risks, the World Bank (WB) said in its East Asia and Pacific Economic Update released on October 10.

Foreign investors’ trading on exchanges and net injecting/withdrawing value from the exchange-traded funds (ETFs) has a high correlation with a usual lag of one month. 

Starting October 15, the Ministry of Finance is scheduled to disclose the disbursement data on a 15-day basis at http://mof.gov.vn.

The US-China trade war is giving opportunities to Vietnam to diversify material supply sources, increase imports from the US to reduce the trade surplus with the country, and reduce the trade deficit with China.

Vietnam was ranked eighth among the top 20 best countries to invest in by US News & World Report, surpassing neighbours like Malaysia, Indonesia, and Singapore.

Commenting about the reliance of Vietnam’s economy on FIEs (foreign invested enterprises), one economist noted that “when FIEs sneeze, the Vietnamese economy catches a cold".

Existing factors in the market, especially strong FDI inflow, all are supporting the prosperity of the industrial real estate market.

Many foreign investors are interested in investing in Vietnam’s fintech market that have huge growth potential, said Han Ngoc Vu, general director of VIB International Commercial Bank, at Fintech Summit 2019 held in Hanoi recently.

The Vietnamese insurance market is heating up with many high-value bancassurance deals and mergers and acquisitions (M&A) unveiled recently.

Southeast Asia including Vietnam have emerged as destinations for investors in the reallocation of investment flow, especially capital flow from China.

Vietnam is being encouraged to focus more on developing a skilled workforce, the domestic private sector, and improvement of regulations to attract companies on the Fortune Global 500 list to serve the new development era. 

The slow disbursement of capital has stalled many projects, affecting socio-economic development.

Vietnam is striving to improve its stock market’s status and implementing measures to attract portfolio investment, and allowing FDI firms to list would help the country achieve this goal.