The 15.2 billion USD of FDI into Vietnam over the past six months was considered a substantial growth (up 13.1% compared to last year) amidst a globally unstable geopolitical situation, that has significantly impacted investment activities. Notably, realised FDI reached about 10.8 billion USD, marking an 8.2% increase, with many new large-scale projects being invested as planned, indicating the genuine commitment of foreign investors.
Three factors that encourage investors to continue trusting Vietnam’s investment environment, including the diversification strategy adopted by investors since the COVID-19 pandemic, the recent recovery of Vietnam’s economic growth which opens many prospects for investors, and Vietnam's maintenance of macroeconomic stability ensuring major economic balances amidst global volatility.
It is worth noting that the new generation FDI attraction has been significantly improved in terms of the investment projects quality in Vietnam, as evidenced by new investment activities and capital increases in many large-scale projects, in sectors like semiconductors, energy, component manufacturing, and high value-added electronic products. This shows that investors' confidence in Vietnam remains strong. Existing investors continue to believe in the government’s policies and the future development of Vietnam's economy.
Many investors view Vietnam as an attractive destination with significant potential and room for growth, in the medium and long term. The global economic outlook for 2024 is forecasted to show weak recovery and face many risks and challenges due to complex post-COVID-19 developments, geopolitical instability, and ongoing competition among major countries, which continue to create changes and impacts on the global economy. New standards and even intervention measures by some governments to direct investment activities could affect FDI trends in the near future. In this context, the Ministry of Planning and Investment forecasts that FDI attraction in 2024 could reach 30-40 billion USD, equivalent to or higher than the previous year.
The prospects for attracting FDI in Vietnam continue to be positive. However, to maintain these results, it is necessary to address some current bottlenecks to continue attracting investment. Accordingly, Vietnam needs to urgently prepare skilled human resources, especially in the semiconductor sector, continue improving the business environment, and address localised power shortages in certain localities gathering electronic industry projects.
