FDI seems set to beat last year’s $27.7B

By Duc Minh October 19, 2023 | 11:57 pm PT

Workers at an air conditioner making factory in northern Hung Yen Province. Photo by VnExpress/Vien Thong

Foreign direct investment this year is likely to exceed last year’s US$27.7 billion, KB Securities Vietnam Company said.

It had topped $20.2 billion in the first nine months, 7.7% up year-on-year.

"The sustained increase in the number of projects shows that foreign enterprises in Vietnam are gradually recovering, and expanding production and business," KB said.

The Foreign Investment Agency had forecast at the beginning of the year that FDI could reach $36-38 billion.

The World Bank said FDI has mainly flowed into industry.

Besides investors’ confidence in the country’s long-term potential despite the current global uncertainty, Vietnam appears to be benefiting from the global trend of shifting production away from China.

The government is facilitating FDI by issuing support packages, improving the business environment and making good use of competitive advantages like the stable economic and political situation, favorable location for investment, free trade agreements, and a large workforce.

Many see the recent upgrade of Vietnam-U.S. relations into a comprehensive strategic partnership and U.S. President Joe Biden’s recent visit to Vietnam as a boost to FDI flows.

At a meeting with Prime Minister Pham Minh Chinh earlier this week foreign business executives based in Vietnam said the country is one of the world’s most promising markets and in their priority investment list.