The prospect of attracting foreign direct investment (FDI) in Vietnam in 2021 is bright in the context that many large, medium and small investors from developed countries gradually divert investment into Vietnam. The foreign direct investment from the beginning of the year to 20th March, 2021 including registered capital, adjust investment capital and total value of capital contribution reached 10.13 billion USD, decrease 18.5% compared to the same period in 2020. Of which, 234 newly licensed projects with a registered capital of 7.2 billion USD, an decrease of 69.1% in the number of projects and a growth of 30.6% of registered capital as compared to the same period last year; 161 turns of projects which were licensed in the previous years registered to adjust investment capital with the additional capital of 2.1 billion USD, a growth of 97.4%; 734 turns of capital contribution and share purchases of foreign investors with a total value of capital contribution of 805.3 million USD, a drop of 58.8%. Including 179 turns of capital contribution capital, share purchase increased charter capital of the enterprise with the value of contributed capital of 281 million USD and 555 turns of foreign investors repurchased domestic shares without increasing the charter capital with a value of 524.3 million USD. Foreign direct investment capital that implemented in quater I/2021 months reached 4.1 billion USD, a growth of 6.5% over the same period last year. Among the FDI partners to Vietnam, the top 5 FDI partners are mainly Asian countries such as Korea, Japan, and Singapore, the presence of Western countries among the top FDI partners is still there. quite low.
However, at present, Vietnam is considered as a “good land” for high-quality FDI inflows. After the Covid-19 pandemic, many large international corporations and enterprises are looking for investment opportunities to diversify the chain. supply and limit over reliance on the Chinese market. Vietnam has become one of the brightest candidates to welcome this shifting capital flow thanks to its success in preventing epidemics. Total foreign investment capital registered in our country increased sharply, up 18.5% over the same period. last year, for example, the Hoa Ky increased by 205.5%; Japan increased by 147.7%; South Korea increased 67.1%. Besides, it can be seen that Vietnam’s success in the race to top the world in attracting FDI recently thanks to a number of other factors. Above all, foreign investors highly appreciate the issue of socio-political stability as one of the important contributing factors to the implementation of economic development policies. Socio-political stability in Vietnam has created strong confidence among domestic and foreign investors. Investors are ready to mobilize capital to increase investment and expand production. The infrastructure of industrial parks, export processing zones and economic zones in the country continue to be completed and upgraded. The Prime Minister has approved 19 coastal economic zones, with a total area of about 871 thousand hectares. In addition, achieving positive growth in 2020, despite the considerable impact of Covid-19 on economic activities, Vietnam becomes a bright candidate for value chain transformation in Asia. In recent years, the quality of human resources in Vietnam has been improved more and more because the Government focuses on investing in public education. The employees are fostered in terms of culture, skills training, and professional qualifications have contributed to increasing labor productivity in Vietnam, which is also a competitive advantage in attracting foreign investment. FDI projects, taking advantage of trade agreements that Vietnam has signed, promise to continue entering Vietnam in the near future. To catch up with this wave, the Government of Vietnam has many special investment incentives and supports to encourage the implementation of a number of investment projects that have a great impact on the economy – society. In addition, Vietnam needs to continue to improve the legal framework, create favorable and equal business investment conditions for investors. is still considered a “good land” to attract high-quality FDI capital after the pandemic.