Vietnam is still a popular investment destination for foreign investors, who poured 14 billion USD into the country during the first five months of the year.
Illustrative photo (Source: baodautu.vn)
Hanoi (VNA) -
is still a popular investment destination for foreign investors, who poured 14
billion USD into the country during the first five months of the year.
With COVID-19 raging, the Regent Garment Factory Ltd.,
a subsidiary of Hong Kong (China)’s Crystal International Group Limited, still
submitted a request to the northern province of Hai Duong to open a new 35 million
USD garment factory in the locality. The request was approved last week.
The investment in the third factory confirms the company's long-term
interest in Vietnam.
Five other investors also received investment licences
in the southern industrial hub of Binh Duong province. The largest investment came
from Taiwan (China)’s Far Eastern Group, with an additional 610 million USD for
its Polytex Far Eastern factory, which already has investment of nearly 600
Meanwhile, the Cheng Loong Group from Taiwan (China) decided
to inject an additional 100 million USD into its 1 billion USD paper factory.
The project was licenced in late 2015.
Another big name - Procter & Gamble - has poured
44.8 million USD into a project, raising its investment in Vietnam to 247.8
million USD. At the same time, Singapore’s New Motion Private Company Limited launched a new project
worth 184 million USD this year, while the Logistics ECPVN Binh Duong project
will have investment of over 34.4 million USD.
A number of other large-scale projects have also received
licences since the beginning of this year.
These projects prove that Vietnam remains a favourite
destination for foreign investors despite COVID-19. Figures from the Foreign
Investment Agency at the Ministry of Planning and Investment show that foreign
investment in Vietnam rose 0.8 percent in the first five months of 2021 to 14
Of the total, newly-registered capital stood at nearly
8.83 billion USD, up 18.6 percent year-on-year, while additional investment totalled
3.86 billion USD, an increase of 11.7 percent compared to the same period last year.
Investment through capital contributions and share purchases was 1.31 billion
USD, down 56.3 percent year-on-year.
According to the agency, the disbursement of foreign
investment was up 6.7 percent to 7.15 billion USD.
Experts said Vietnam boasts various competitive
advantages in foreign investment attraction.
Its engagement in new generation free trade agreements
(FTA), including the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive
and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the
EU-Vietnam FTA has helped it access free markets in 55 countries and territories,
including 15 G20 economies, making it more attractive to foreign investors,
according to Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc.
Among Vietnam’s advantages, she said, are its stable
macro-economy and positive growth amid COVID-19, strong support for foreign
investors, and the issuance of a series of key laws regarding investment activities
as well as special incentives for large-scale projects.
However, in reality, the foreign investment attraction
“race” is becoming fiercer in Southeast Asia, she noted, adding that regional
countries also introduce attractive policies to promote foreign investment.
Nguyen Duc Trung, Chairman of the People’s Committee
of central Nghe An province, said foreign investors are waiting for a specific
foreign investment attraction strategy as well as special preferential