|Prime Minister Pham Minh Chinh addresses the Da Nang Investment Forum (photo: VNA)
The General Statistics Office reported that newly registered foreign direct investment in the first 5 months of the year fell short of the same period last year, but capital adjustment and capital stock increased strongly. Industries, support industries, high tech, and information technology are attracting strong foreign capital flows into Vietnam.
Attracting investment to different sectors
Da Nang has good IT and high-tech infrastructure, a young, abundant, skilled workforce, a prime location, and comprehensive urban infrastructure. Da Nang has won the Smart City Award for two consecutive years. It has 44,000 IT workers, nearly half of them programmers working for 24,000 digital businesses.
Chairman of FPT Group Truong Gia Binh said Da Nang is becoming more attractive to technology investors. One of Da Nang’s strategic goals is to become a center of technology start-ups, researchers, and game developers.
“Da Nang’s infrastructure has improved a lot. Foreign experts are very pleased to come to Da Nang. Da Nang's software exports have earned 100 million USD and are seeing double-digit growth. Da Nang's IT businesses account for 8.2% of the Gross Regional Domestic Product," said Binh.
Many global groups are investing in Da Nang, including Sumitomo Corporation of Japan and Adani Ports & SEZ of India. At the Da Nang Investment Forum, the President of Adani Ports & SEZ said he will invest 10 billion USD in seaports and infrastructure in Vietnam.
FDI flowed strongly into southern provinces and cities in the first few months of this year, accounting for 88% of the total registered capital. This includes the 1.3-billion-USD investment project of Lego Group in Binh Duong province and the 136-million-USD project of Coca-Cola in Long An province.
The southern economic hub leads Vietnam in newly registered capital for processing and manufacturing projects. Tay Ninh city has granted an investment certificate for a fabric manufacturing project worth 210 million USD by Libra International Investment of Singapore at the Thanh Cong industrial park.
Shinkong Synthetic Fibers, a business specializing in yarn production, weaving, and related fields, invested 85 million USD in Ba Ria-Vung Tau province.
The northern economic hub has received a huge capital adjustment for current projects. The VSIP urban infrastructure and services project of Singapore has increased its capital investment by 941 million USD. Hong Kong, China, has increased its investment capital by nearly 306 million USD for the Goertek Vina electronics and networking. The Samsung Electro-Mechanics project in Thai Nguyen city received an additional 920 million USD this year.
|Prime Minister Pham Minh Chinh witnesses the granting of investment certificates to investors. (photo: VNA)
Strong commitment by the Vietnamese government
Vietnam has been receiving praise from international financial institutions and experts for its improved investment environment, political stability, and a strong economic recovery.
According to the Good Government Index published by the Chandler Institute of Singapore, Vietnam's investment attraction ranks 39th of 104 countries, up 18 places since 2021.
Geo-political advantages, a dynamic economy, and a strong commitment by the Vietnamese government to foreign investors has reinforced investor confidence. Prime Minister Pham Minh Chinh told the Da Nang Investment Forum: “We expect businesses to increase investment in Vietnam in a spirit of mutual trust, responsibility, and sincerity. We invite you to work with us to build a socialist-oriented market economy, an independent, self-reliant, and proactive economy that is integrating globally.”
Global developments have prompted multinational groups to restructure their investment flows and destinations. Vietnam, with many advantages, potentials, and preferential investment policies, has become a safe, attractive, and lucrative destination for foreign investors.