An integral part of Vietnam’s economy

Vietnam has seen foreign direct investment (FDI) as an integral part of its economy, said Deputy Minister of Planning and Investment Do Thanh Trung at a conference on FDI in Vietnam last week.

Over the past 35 years, the investment environment has improved steadily, so the country has made great achievements in attracting capital from abroad, he said. Total foreign capital pledges in Vietnam had reached nearly US$446 billion as of April this year, with about US$280 billion already disbursed. Many multinationals with modern technology are expanding investments in Vietnam with higher quality and efficiency.

Trung noted that the FDI sector has for three decades and a half contributed significantly to the nation’s social and economic development, economic restructuring, import-export growth, job creation, and State budget revenue. The sector accounts for 20% of the GDP, over 70% of exports and 50% of industrial output, and employs more than five million workers.

In addition, the FDI sector has fostered the development of many important industries, promoted Vietnam’s global economic integration and helped the domestic sector improve competitiveness and join the global value chain. Trung said to attract more FDI, Vietnam will develop a sci-tech and innovation ecosystem with a flexible management mechanism in line with the digital business environment, and foster a strong domestic corporate sector able to cooperate with the FDI sector in areas such as high tech, manufacturing, IT and modern services.

Despite the Covid-19 impact, Vietnam was among the top 20 host economies of FDI inflows between 2019 and 2020, according to the United Nations Conference on Trade and Development.