Vietnam is considered a promising destination in the eyes of foreign investors thanks to its favorable geographical location, high-quality workforce and special investment incentives. In particular, strong commitment to reforms has increased the attractiveness of the Vietnamese investment environment.
Vietnam is considered a promising destination in the eyes of foreign investors thanks to its favorable geographical location, high-quality workforce and special investment incentives. In particular, strong commitment to reforms has increased the attractiveness of the Vietnamese investment environment.
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| Vietnam is attractive to foreign investors thanks to a high-quality workforce and special investment incentives |
Increased FDI pledges
Although the Vietnamese economy experienced many difficulties in 2021 due to the resurgence of the Covid-19 pandemic, foreign investment in Vietnam remained a highlight. According to the Foreign Investment Agency under the Ministry of Planning and Investment, newly registered capital, adjusted capital and capital contribution or share purchase by foreign investors in Vietnam reached US$31.15 billion as of December 20, 2021, an increase of 9.2 percent compared to 2020.
Many foreign corporations decided to expand their investments in Vietnam. For example, Nestlé announced an additional US$132 million investment in its Nestlé Tri An factory in Dong Nai Province to double its processing capacity of high-quality coffee lines, aiming to turn the Vietnamese market into a hub for producing and supplying high-value coffee for domestic and international markets. Binu Jacob, CEO of Nestlé Vietnam, said the Vietnamese market can become a production center for packaged food and beverage (F&B) products for the whole world thanks to the country’s skilled workforce and great work ethics.
The tech giant Samsung has already poured nearly US$20 billion into Vietnam. Choi Joo Ho, general director of Samsung Vietnam, said the group is operating six production factories in the provinces of Bac Ninh and Thai Nguyen and Ho Chi Minh City and one research and development center in Hanoi. He also said Vietnam is providing not only Samsung but also all foreign investors with an attractive investment environment.
Trust in strong government commitment
Specifically, the government issued a number of resolutions and decrees on land rent exemptions and reductions, and electricity price cuts. The prime minister also established two special working groups led by two deputy prime ministers to review the problems and remove the difficulties facing pandemic-hit businesses and individuals, while promoting the implementation of investment projects.
The government promulgated Resolution 105/NQ-CP on supporting enterprises, cooperatives and household businesses with four groups of specific solutions, requiring a drastic fight against the pandemic and at the same time creating favorable conditions for enterprises, cooperatives and household businesses to recover, maintain and develop trade and production activities. In particular, the government’s decision to switch from “Zero Covid-19” to safe and flexible adaptation to the pandemic drew praise from the business community.
(Source:VEN)
