Foreign investment flow into Vietnam to reach $38 billion in 2023

Hanoi, The Gulf Observer: Foreign investment inflows into Vietnam will likely reach $38 billion in 2023, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment. 

Disbursement of foreign investment this year is expected to hit $22-23 billion, Deputy Director of the FIA Do Van Su told baodautu. 

The opening of China’s economy might affect Vietnam’s foreign investment attraction, Su said, adding that China remained the leading investment destination in the region, so when they opened up, capital would flow into this market while that to Vietnam and other economies in the region would be limited. 

On the contrary, the investment capital movement of South Korea, Japan, and Taiwan from mainland China would be accelerated. This shift would be accelerated until 2025, and Vietnam would be a preferred investment destination for investors, Su told the online newspaper.

Currently, South Korea, Japan and Taiwan (China) are Việt Nam’s major sources of foreign investment and they have constantly increased their investments in Southeast Asian countries. 

According to the FIA, essential factors for FDI to continue to prosper in 2023 included economic growth results in 2022, endless efforts of authorities in improving the business investment environment, creating trust with investors and effectively exploiting the advantages of free trade agreements.

Nguoi lao dong (Labourer) newspaper cited Minister of Planning and Investment Nguyen Chi Dung as saying that Vietnam had adopted a selective approach to attracting foreign investment inflows which would  contribute to the country’s implementation of the sustainable development strategy.

Priority would be given to projects using new and green technologies, with high added value, modern corporate governance, high spillover effects, ensuring technology transfer and being integrated with global supply and production chains, Dung said. 

To lure more foreign investment, Dung emphasised the importance of developing innovation and financial centres at the regional and international levels, creating a driving force for socio-economic development in the coming period. 

He added that stabilising the macro-economy, improving infrastructure and the quality of human resources would be also needed. 

Economic expert Le Dang Doanh told the Labourer that Vietnam needed to have a comprehensive assessment of the trend of shifting foreign investment inflows soon so that the country could have more appropriate and effective policies to attract this capital flow.