foreign investment office Ministry of Country Planning and InvestmentVietnama reportinvestment statisticsForeign direct investment (FDI) for the first 10 months of 2022 (January-October) was worth 17.45 billion dollars, an increase of 15.2 percent compared to the same period last year. It is expected that the investment value FDI The total in 2022 will be $22 billion, an increase of 11.5% from the previous year.
while Statistics on issuing investment promotion certificates worth $22.4 billion, down 5.4% from the previous year.
for The country’s investment in Vietnam was the highest in the first 10 months of this year. Number one is countrySingapore worth $5.34 billion followed by Japan $4.2 billion and South Korea $3.9 billion. Ho Chi Minh City is the biggest attraction for FDI in Vietnam.
Currently, Vietnam has FDI project accumulating 36,000 projects and a total of more than $435 billion. with investors from more than 100 countries investing in Vietnam
However, the important factor that investors consider expanding their base to Vietnam comes from trade benefits After Vietnam signed the Comprehensive and Progressive Agreement for Pacific Economic Partnership (CPTPP) and the Thailand-EU Free Trade Agreement (EVFTA), the products produced by Vietnam are reduced or exempted from normal rate tariffs when exporting to partner markets Vietnam has 16 FTA agreements covering 54 countries around the world.
Factors that have made Vietnam one of the choices for foreign investors include:
1. The stability of the political sector (Socio-political stability) because Vietnam rules a one-party socialist style.
2. The working age population structure accounts for 60% of the population, although the current wages in Vietnam are not as low as in the past due to the large increase in FDI, increasing the demand for workers. And the Vietnamese government has continuously adjusted the minimum wage rate to be in line with the cost of living. However, Vietnam still has a large number of workers. Compared to the population of almost 100 million people.
In addition, Vietnam has designated areas.industrial area Industrial Zones (IZs) and Economic Zones (EZs) are located in 61 of Vietnam’s 63 provinces, with more than 400 industrial zones, 26 frontier economic zones and 18 coastal economic zones as supporting areas that attract investment in Vietnam and the exchange of information and techniques as well as to develop the labor sector of Vietnam. In addition, to attract investors The Government of Vietnam has published Decree 35/2022 on the management of industrial and economic zones. The law is expected to help the procedures and costs for investors to establish economic zones in Vietnam.