Since the enactment of the Law on Foreign Investment in December 1987, one of the first achievements of ‘Doi Moi’, Vietnam has attracted FDI to its economy for over 30 years. Hence, FDI is becoming an important economic sector of Vietnam. A long road To date, more than $182 billion in FDI has been invested in almost all industries and sectors of the economy, significantly contributing to the development and restructuring of the economy. The FDI sector accounts for about 25% of total investment nationwide, and generates over 70% of total export turnover of the country. However, many experts believe that FDI is dominating too many fields and occupations, taking opportunity away from home-grown businesses, and above all, making the economy dependent on foreign investment. To adequately analyse the effect of FDI, Dr. Nguyen Dinh Cung, Director of the Central Institute for Economic Management, explains that one cannot only focus on FDI enterprises alone, but must make a … [Read more...] about Will FDI adversely affect Vietnamese businesses?
30 years of fdi
A corner of Hanoi capital (Photo: hanoimoi.com.vn) Hanoi (VNA) – Hanoi raked in about 6.23 billion USD in foreign direct investment (FDI) during the first nine months of this year, continuing to lead the country in FDI attraction, according to the municipal People’s Committee. Of the total, 503 million USD was poured into 631 new projects, while 509 million USD was added to 148 existing ones. Foreign investors injected over 5.22 billion USD into local firms via capital contributions and share purchases. In September, the capital licenced 65 new FDI projects worth a total of 30 million USD, including 54 wholly foreign invested and 11 associate and joint venture ones. Some 20 million USD was added to 15 existing projects while about 75 million USD was contributed by foreign investors to local enterprises. During the nine-month period, the city granted business registration certificates to over 20,560 new businesses with total registered capital exceeding 263.7 trillion VND … [Read more...] about Hanoi remains Vietnam’s biggest FDI magnet in nine months
Hanoi (VNA) – The capital city of Hanoi recorded impressive socio-economic development results in the first nine months of this year, with a gross regional domestic product (GRDP) growth of 7.35 percent, up from the 6.95 percent expansion recorded in the same period last year. The information was revealed by Director of the municipal Department of Planning and Investment Nguyen Manh Quyen at an October 1 teleconference to review the city’s performance in the third quarter and the first nine months as well as launch tasks for the rest of the year. The city welcomed 21.55 million tourists during the nine-month period, a rise of 9.5 percent year-on-year. Among those, 4.71 million were foreigners, up 10.1 percent. Especially, Hanoi led cities and provinces nationwide in receiving foreign direct investment (FDI) by luring 6.23 billion USD, or 23.5 percent of the total FDI that Vietnam got in the period, Quyen said. Its total social investment hit 245.8 trillion VND … [Read more...] about Hanoi records impressive socio-economic results in nine months
New foreign investment regulations will have a positive impact on foreign investors in Vietnam for the foreseeable future. Lawyers at Yingke Vietnam, a subsidiary of Yingke Global, have been quite busy helping major foreign clients seeking investment opportunities in Vietnam. Mr. Tony Hieu, Legal Manager at the company, told VET that a mere five months into its practice, the company plans to recruit more highly-specialized employees to meet the increasing workload. “In addition to the move towards relocating production facilities to Vietnam, the country has also been active in signing bilateral and multilateral trade agreements in recent times that made its business environment more attractive to many foreign investors,” he explained. Thirty-three China-based manufacturers have moved to Vietnam since June, preferring the country over Indonesia. Trade tensions affect export-oriented manufacturing sectors the most, so investors naturally head to places that are also … [Read more...] about Clearing the path for foreign investors in Vietnam
Potential untapped How do you evaluate the foreign direct investment FDI attraction over the past time and the potential to attract foreign investment into Hanoi in the future? Since Hanoi founded the Trade Tourism Promotion Investment Center and now another one for farm trade and investment, the investment attraction has been more successful. Hanoi’s authorities have held meetings with investors in which they give answers to every issue of investors’ concern. Prof. Dr. Nguyen Mai, Chairman of the Association of Foreign Invested Enterprises (VAFIE) In the Socio-Economic Development Program for the period of 2018-2020, Hanoi established three breakthrough missions including administrative reform, infrastructure development and high quality human resources training. Accomplishing these tasks would create a better business environment and attract more FDI. Hanoi still has much room to attract FDI in the coming years. Vietnam has been a member of many … [Read more...] about Potential for attracting FDI in Hanoi remains large: Prof. Nguyen Mai