A manufacturing line on the Republic of Korea’s Bluecom Vina Co., Ltd, within the Trang Due Industrial Park in Hai Phong metropolis. Picture: VNA

Hanoi (VNA) – Vietnam’s financial energy is mirrored in managed macroeconomic indicators and the nation has more and more affirmed and strengthened its vital function within the provide chain diversification technique of multinational companies. 2024 would be the yr for overseas traders to grab alternatives and implement high-tech overseas direct funding (FDI) tasks in Vietnam.

Nguyen Bich Lam, former Common Director of the Common Statistics Workplace has granted an interview to Vietnam Information Company on the image of FDI attraction and options to enhance capability and motivation to advertise financial development within the coming time.

The knowledgeable stated within the first two months of the yr, registered FDI reached 4.29 billion USD, up 38.6% in comparison with the identical interval in 2023.  The quantity of FDI disbursement reached 2.8 billion USD, a rise of 9.8% yr on yr.

Lam acknowledged that within the context of uncertainties and fierce strategic competitors, the fragmented world economic system has lowered and reshaped worldwide funding flows, nonetheless, the nation continues to be a pretty marketplace for overseas traders, as a result of its economic system has recovered and developed in a comparatively secure vogue.

Former Common Director of the Common Statistics Workplace Nguyen Bich Lam. Picture :VNA

PwC’s “World in 2050” examine has said that Vietnam will obtain the second highest annual GDP development price worldwide and GDP will develop by a median of 5.3% per yr over the 36-year interval from 2014-2050. This vital macroeconomic indicator is a testomony to the success of the Authorities’s administration in recovering and sustaining the secure improvement of the economic system.

He stated overseas traders praised Vietnam’s integration with the world’s inexperienced improvement development with a robust dedication to implement the provisions of COP 26. Together with that, the federal government has issued insurance policies to encourage overseas traders to spend money on tasks utilizing superior expertise, clear, environmentally pleasant expertise, with fashionable administration strategies that actively contribute to the manufacturing chain and international provide.

Lam cited that Vietnam’s economic system has deeply and broadly built-in into the area and the world. Vietnam has additionally signed and applied many free commerce agreements with greater than 60 companions overlaying all continents. When it comes to market entry liberalisation, in keeping with the World Commerce Group (WTO), Vietnam is on par with Singapore, probably the most developed nation in Southeast Asia.

In addition to, Vietnam has relaxed rules on overseas possession in listed firms, easing the burden on traders. Since 2015, the federal government has allowed the relief of overseas possession in listed firms by as much as 100% in some instances. It additionally permits limitless overseas funding in authorities bonds, he added.

As well as, Vietnam has a very favorable geographical place, a gateway for worldwide commerce in items by sea. More and more synchronous infrastructure and expertise are additionally benefits that make Vietnam enticing to overseas traders.

With the overseas coverage of independence, self-reliance, diversification and multilateralisation, Vietnam is working to be a dependable associate and accountable member of the worldwide group. With a versatile overseas coverage, Vietnam is a complete strategic associate or strategic associate of all 5 everlasting members of the UN Safety Council. On March 7, 2024, Australia turned Vietnam’s seventh complete strategic associate. Vietnam’s place has been elevated, turning into a regional political-economic-security middle. The nation is now a associate of the worldwide financial and political communities and a related economic system in a fragmented world – a bonus that solely a only a few international locations have.

The upgrading of the great strategic partnership with the US and Japan, with a concentrate on cooperation in commerce, funding, science and expertise, is a vital premise for financial improvement. Particularly, overseas funding in excessive expertise and export represents a possibility to create a breakthrough in attracting FDI inflows in 2022, he talked about.

With the more and more strengthened function of the economic system within the provide chain diversification technique of multinational companies, Vietnam’s financial development is anticipated to get well extra positively this yr. A secure socio-political basis is a core and vital consider Vietnam’s prospect of making a breakthrough in FDI attraction in 2024 and past, he expressed.

Just lately, international credit standing company Fitch Scores has upgraded Vietnam’s sovereign credit standing to BB+ with a secure outlook. With the achievements, benefits and place of the economic system, 2024 is anticipated to be a breakthrough yr in FDI attraction of the nation./.

VNA