Vietnam continue being bright spot in FDI attraction in the midst of the COVID-19 pandemic

Vietnam is considered as one of the bright spots in FDI attraction, surpassing many strong countries in attracting foreign investment in Southeast Asia such as Indonesia, Philippines and Thailand.

A new wave of FDI is coming to Vietnam

According to the set of EPIC criteria published by IHS Company (UK) and University of Tennessee, Vietnam ranks 25th out of 60 most attractive countries in the world in FDI attraction, surpassing very strong countries in Southeast Asia such as: Indonesia, Philippines and Thailand.

According to international organizations, Vietnam’s business investment environment has strong and appreciated improvements. US News & World Report magazine ranked Vietnam 8th out of 20 best economies in the world to invest in 2019, up 15 places compared to 2018.

In the midst of the 19 Covid pandemic, Vietnam also received many compliments for promptly stopping the outbreak of the epidemic, minimizing the number of new infections as well as the number of deaths in a short time. While many countries in the region are still in political unrest, Vietnam is one of the few countries that are politically stable, have well controlled the epidemic and have many positive signs of economic growth. Therefore, it is not surprising that FDI continues to flow into Vietnam, despite the pandemic and the risk of economic recession.

Reference: Experience of establishing a company for foreign investors in Vietnam 

Forecasts about Vietnam’s economy in the period 2020 – 2021

The Asian Development Bank predicts that Vietnam will be one of the fastest growing economies in Southeast Asia, continuing its growth momentum while many other countries will see negative growth due to disease.

According to the report “Asia Economics: It’s about stamina”, the HSBC Economic Research Division forecasts that Vietnam’s GDP growth this year will reach 2.6% (slightly lower than the previous forecast of 3%).

In 2021, HSBC believes that Vietnam will benefit from the technology-led recovery and steady FDI inflows. Therefore, Vietnam’s economic growth in 2021 is expected to reach 8.1% (previously forecast 8.5%).

Along with positive signs of economic recovery, the National Assembly of Vietnam has just passed Laws: amended Investment Law, amended Enterprise Law, Investment Law in the Public Private Partnership (PPP) mode aims to create a favorable, transparent, competitive legal framework in line with international practices in order to effectively attract quality FDI projects. as well as improving the investment environment in the future.