FDI investors still consider Vietnam an attractive destination
FDI investors still consider Vietnam an attractive destination for new projects or expansion after pandemic, dont they? To know what investors thinking about Vietnam recently, let's take a look at this article.
Announcement for new investment
Nestle has just announced an investment of more than 130 million USD in Vietnam, bringing the total investment capital to 730 million USD in next 2 years to make expansion.
“We still believe in the future of Vietnam - a global and regional manufacturing hub. The proof is that we decided to make more investment to expand production here,” said Nestlé Bong Sen Factory Director Urs Kloeti about the plan to carry out a series of investment projects to enhance capacity in Vietnam.
Meanwhile, many foreign investors also committed to stay in Vietnam and to increase investment capital as planned. For example, another 100% foreign-owned Swedish enterprise, Tetra Pak, has also announced additional investment of 5 million Euros to expand its factory in Binh Duong.
“This additional investment of 5 million Euros demonstrates our confidence in the strong recovery of Vietnam economy after pandemic,” said Eliseo Barcas - General Director of Tetra Pak Vietnam.
Meanwhile, SCG Packaging (SCGP), a member company of SCG Group (Thailand) has announced a plan to invest more than 11.8 billion baht (equivalent to more than 353 million USD) in the paper packaging production in Vietnam. Mr. Wichan Jitpukdee, CEO of SCGP assessed that Vietnam is an important location for production and export in region and also makes great attraction for multinational enterprises to entry the market.
FDI capital chooses Vietnam
Although epidemic makes it difficult for the production and business of FDI enterprises in Vietnam, investors still believe in Vietnam economy.
This can be clearly seen when looking at the amount of FDI capital flowing to Vietnam from the beginning of 2021 until now. As of September 20th, 2021, the total newly registered, adjusted and contributed capital, share purchase from foreign investors reached 22.15 billion USD, up 4.4% over previous year.
For enterprises investing in Vietnam, despite difficulties in past few months regarding production stagnation to prevent pandemic, FDI enterprises still promoted high productivity. This is reflected in the nine-month trade report of the FDI sector. According to the General Statistics Office, the total export value of FDI enterprises within 9 months of 2021 reached 177.8 billion USD, (up 22.8%) accounting for 73.9% of the total export turnover of whole country.
Obviously, the export of goods of FDI enterprises is of great significance in ensuring that Vietnam's export turnover have been strongly growing in past 9 months, with $240.52 billion, up 18.8% over the same previous year.
The driving force for export growth and investor retention comes from 14 Free Trade Agreements (FTAs) that Vietnam is a member of, which are put into effect including the Vietnam - EU (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the UK-Vietnam Free Trade Agreement (UKVFTA), etc. are of particular interests to European investors.
Source: Investment Journal
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