Vietnam is likely to witness a surge in foreign direct investment (FDI) in 2022 following a long gap due to the pandemic, say economic experts. During the first two months of the year, the country recorded $2.1 billion in new investment, with $1.6 billion disbursed--a 6.8 per cent and a 4.2 per cent increase respectively from the values during the same period last year.
According to the department of foreign investment, 71 FDI projects have applied to raise their investment in recent months—a positive sign for the manufacturing sector.
An increase in the number of new projects and investment in existing projects shows the strong confidence of foreign firms in the country's investment environment, according to Vietnamese media reports.
Department head Do Nhat Hoang said the country had been working with foreign partners looking to relocate their production centres. FDI is likely to pick up this year as countries reopen and learn to adapt to the new normal, he said.
Takeo Nakajima, head representative of the Japan External Trade Organisation, said Vietnam would continue to be one of the most attractive investment destinations for Japanese firms, especially after the visit to Japan by Prime Minister Pham Minh Chinh, who oversaw 25 cooperation agreements worth up to $12 billion.
European firms have also been showing stronger confidence in the country. "Major businesses from the Republic of Korea, Japan, Europe and the US all have plans for new investments in Vietnam in 2022, especially US businesses," said minister of planning and investment Nguyen Chi Dung.
Source: Fibre2Fashion News Desk
