FDI – bright spot of Vietnam’s economy amid COVID-19
The Vietnam Association of Foreign Invested Enterprises (VAFIE) released an annual report on foreign investment in Vietnam last year at a meeting in Hanoi on May 10.
Hanoi (VNA) – The Vietnam Association ofForeign Invested Enterprises (VAFIE) released an annual report on foreign investment in Vietnam last year at a meeting in Hanoi on May 10.
The report was made with the cooperation of KPMGVietnam that provides independent audit services and the support of the ForeignInvestment Agency under the Ministry of Planning and Investment, Fiin Group andsome economists, according to VAFIE Vice President Nguyen Anh Tuan.
The 250-page report, in both Vietnamese and English,is expected to be useful for policy-making agencies, research and traininginstitutions, FDI firms and international investors, he said.
VAFIE President Nguyen Mai said foreign investment is the silver lining inVietnam's economic picture amid the adverse impacts of the COVID-19 pandemic on the national andglobal economy.
He, however, pointed out outstanding problems during the attractionand use of FDI such as the modest number of high-tech projects from the US andEurope. Besides, contributions to the State budget of many FDI enterprises did not match their investment scale and the incentives they are entitled to. The structure of FDI in terms of regions and localities remains unbalanced, and too few businesses established research and development (R&D)centres.
Noting that the Politburo issued Resolution No. 50-NQ/TW datedAugust 20, 2019 on orientations to consolidate institutions and policies inorder to raise the quality and efficiency of foreign investment by 2030, Mai said the VAFIE realised the need for a report on FDI in Vietnam, hence the release of the report.
According to VAFIE, since the National Assembly passed theLaw on Foreign Investment in Vietnam in 1987, the foreign-invested economicsector has continuously developed, significantly contributing to nationaleconomic growth and growth model reform towards industrialisation and modernisation,accelerating Vietnam’s international economic integration and improving itsposition in the world.
The FDI sector now accounts for around 25 percent oftotal social investment, 55 percent of total industrial production valuein Vietnam, and more than 70 percent of the country’s export revenue.
It has generated direct jobs for 4.6 millionpeople or more than 7 percent of the country’s workforce, and indirectly createdjobs for millions of others./.
Foreign direct investment (FDI) flowing into the southern province of Binh Duong neared 1.8 billion USD in the first four months of this year, four times higher than in 2021.
The inflow of foreign direct investment into Vietnam hit 10.8 billion USD in January - April period, according to the Ministry of Planning and Investment
Vietnam attracted over 10.8 billion USD of foreign direct investment (FDI) in the first four months of this year, equivalent to 88 percent of the amount recorded in the same period last year, according to the Ministry of Planning and Investment.
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At the meeting to release the report (Photo: VNA) 
