Foreign investors’ confidence in Vietnam remains strong

Vietnam's robust increase in foreign investment amid global geopolitical uncertainty underscores the strong confidence that foreign firms have in the Southeast Asian market. According to the Ministry of Industry and Trade, this confidence is reinforced by the Vietnamese Government's policies and the country's positive economic outlook.

Tech giants from South Korea, such as Samsung and LG, have identified Vietnam as a key global production base. Other significant investments include projects by Foxconn, Goertek, Amkor, and HanaMicron.

In the first half of the year, Vietnam attracted nearly USD 15.2 billion in foreign investment, marking a 13.1% increase year-on-year. The country is expected to attract around USD 39-40 billion in foreign capital this year, matching the 2023 figures. Even during the COVID-19 pandemic, Vietnam was among the top 20 countries for foreign direct investment, securing USD 20-22 billion.

Recent years have seen significant investments in semiconductors, energy, electronic parts, and high-value-added products. Vietnam also has promising prospects for attracting investments in cutting-edge industries like AI and hydrogen.

Experts attribute Vietnam's increasing appeal to its crucial role in multinational companies' supply chain diversification strategies, alongside its strong economic recovery and stable macroeconomy. The Vietnamese Government is committed to enhancing the investment and business environment to support foreign investors and foster a mutually beneficial relationship.

To maintain its competitive edge in attracting foreign investment, Vietnam needs to address challenges related to human resources, infrastructure, land, energy, and investment procedures. Promoting technology transfer and integrating Vietnamese firms into the global supply chain are also essential for sustaining this growth.