An assembly line of a FDI company (Illustrative photo: Danh Lam/VNA)

The Ministry of Planning and Investment said that in the first half of the year, registered FDI totaled 15.2 billion USD, 13% more than in the same period in 2023. Foreign investors are feeling positive about Vietnam’s economy. Many corporations and businesses plan to continue investing in Vietnam, raising this year’s FDI projection to between 39 and 40 billion USD.

Positive outlooks important in attracting FDI

International financial institutions have made positive projections of Vietnam’s economic growth. Oxford Economics, a leading independent consulting company, forecasts that Vietnam's GDP will expand 5.6% in 2024, while United Overseas Bank of Singapore predicts 6% this year and 6.4% next year.

ING THINK, an international economic and financial analysis group, predicts Vietnam's GDP growth this year will be 6%, one of the highest rates in the region, and possibly 6.5% in 2025.

S&P Global Ratings of the US voiced optimism about Vietnam’s outlook, with a GDP of 5.8% this year and 6.5 to 7% in the next three or four years.

The UK’s Standard Chartered also projects VN’s growth rate will exceed 6% this year. Standard Chartered President Jose Vinals said: "When your credit rating goes up, you can attract more investment, both for direct and portfolio investment. That’s a double positive for the Vietnamese economy."

"An economy like Vietnam, which is very open and integrated into the global economy, I think Vietnam can and should aim for more because it has potential and attractiveness to grow faster. Let’s consider most others economies in the world, having 6% growth rate this year is something which is quite good news because it’s higher than most of the economies can have, for example the global growth is a bit higher than 3%.”

The World Bank, the International Monetary Fund, and the ASEAN+3 Macroeconomic Research Office all forecast that Vietnam's growth this year will be greater than last year, reaching 5.5 to 6%.

Destination for foreign investors

FDI to Vietnam in the first half of the year was 10.84 billion USD, 8.2% more than in the same period last year. This was the highest first-half-year FDI in the past five years. This shows that foreign investors have confidence in Vietnam as an investment destination in the medium and long term as the global supply chain  gets restructured. Joo-ok Lee, Asia-Pacific region Director of of the World Economic Forum, said: "Vietnam has affirmed high prestige to the business leaders, who are seeking a stable but also great dynamic growth and investment opportunities."

According to the Business Confidence Index report for the first quarter of 2024 by the European Chamber of Commerce in Vietnam, 54% of surveyed businesses said they were likely to introduce Vietnam to other foreign investors. The European business community believes Vietnam is a dynamic market with great growth prospects.

Japan, another important partner of Vietnam, applauds Vietnam's investment and business environment. A JETRO survey on the business environment in Q1 showed that, in the next one to two years, 57% of Japanese businesses are likely to expand their business in Vietnam.

Hong Sun, President of the Korean Business Association in Vietnam (Photo: chinhphu.vn)

During Prime Minister Pham Minh Chinh’s recent state visit to South Korea, leading Korean corporations like Samsung, CJ, Posco, LG, Daewoo E&C, GS Engineering & Construction Corp, and KDB bank said they will expand investment in Vietnam.

Hong Sun, President of the Korean Business Association in Vietnam, said: “Prime Minister Pham Minh Chinh has repeatedly promised his support and assistance in resolving the problems of Korean investors in Vietnam. We are glad that so many Korean investors intend to expand their investment in Vietnam in the near future.”

Economists say Vietnam will continue to be an attractive destination for foreign investment in the foreseeable future.