Vietnam remains destination for foreign investment next year

This year has seen a period of global economic difficulties, with Vietnamese economic growth estimated to have reached 5.05%.

Nikkei newspaper of Japan said that Vietnamese growth has been strongly affected by various risk factors within the global economy.

In particular, conflicts and geopolitical shifts have served to weaken supply chains resulting in reduced trade.

Although the set target was not fulfilled, the nation's growth can still be considered optimistic. This newspaper quotes a number of economic experts as saying that the Vietnamese economy still maintains a positive growth rate compared to regional and world standards.

Many foreign businesses continue to highlight the nation as a potential and friendly market with ample room for further development moving forward.

Siam Group (SCG) of Thailand, a major investor in the field of construction materials production, packaging, and petrochemical industry, has invested in numerous projects in the Vietnamese market worth more than US$7 billion. It has also pledged to expand investment over the coming years, including energy conversion projects.

Roongrote Rangsiyopash, president and CEO of SCG Group, said that the nation represents a market with great potential, a young population, and a high-quality workforce. The nation also possesses suitable conditions for investment having signed free trade agreements (FTAs) with many countries.

These factors have helped the country become a hub connecting with the United States, Europe, and Southeast Asia. A stable political environment over a long period of time is therefore viewed as a factor in helping companies to stabilise their business activities locally, according to Rangsiyopash.

Sharing this opinion, Jareeporn, chairwoman of the Board of Directors of WHA Group of Thailand, shared that the Vietnamese market is seen as very attractive country in the region, especially for foreign direct investment (FDI). In terms of GDP, Vietnam is at a high level in the region.

According to Jo Eunjin, deputy director of the Korea Trade-Investment Promotion Agency (KOTRA) Hanoi office, the country is still one of the attractive destinations for Korean businesses.

Currently, investment projects of Korean businesses have returned to the same level as before the COVID-19 pandemic and will continue to increase in the near future.

Recently, international companies have begun to restructure global values through reorganising supply chains and diversifying production locations.

Vietnam has become one of the ideal destinations for companies that wish to retreat from fixed markets to expand into other markets thanks to outstanding investment attraction policies, as well as advantages in terms of abundant human resources, political stability, and favourable regulations for trade activities, Eunjin went on to say.

Korean businesses' interest in Vietnam has returned to the same level as before the COVID-19 pandemic. In addition, businesses continue to seek opportunities in the information technology and distribution sectors, especially in the production of components and raw materials, she added.

Many international groups have also pledged to continue expanding investment in the Vietnamese market. American corporation Pepsi.Co has revealed that it would invest roughly US$82 million in the building of an additional fast-food factory in the northern province of Ha Nam.

Meanwhile, US chip manufacturer NVIDIA last month also announced that it would expand co-operation with leading Vietnamese technology firms to research and develop artificial intelligence (AI) and digital infrastructure.

NVIDIA is also considering establishing a research and development facility in the nation next year.

Foreign investment in the country, as of October this year, surged by 54% over the same period from last year, with US$15.29 billion being poured into 2,608 new projects.

Among them, about US$5.29 billion was invested in more than 1,000 existing projects.