Being upbeat over FDI prospects should go with caution: KPMG executive
The world may undergo an economic recession in the coming months and next year, therefore Vietnam should keep an eye on such risks when attracting foreign direct investment, a KPMG senior partner said Thursday.
Addressing the “Vietnam Industrial Park Forum 2022” held by The Investor in Ho Chi Minh City, KPMG Vietnam senior partner Nguyen Cong Ai said it is advisable not to be too optimistic about near-future FDI inflows into the country.
“It’s clear that Vietnam is still an attractive destination for foreign investors. But if I must call this a golden opportunity now, I still have caution. There is already a downturn in the world, and it is likely that the U.S. and European economies would see a recession in 2023.
"In addition, many countries are competing in attracting FDI. Even the U.S. and European economies are part of the race. Vietnam is facing stiffer global competition,” he said.
Ai, a consultant with KPMG since 1998, said Vietnam -- in the global competition -- should improve its ports and logistics and expand housing supply for workers to lure more high-quality FDI inflow, and pursue environmentally friendly and sustainable growth.
“Maybe more attention should go to Asian investors if it is hard to lure new major global investors as this is probably the next trend,” Ai said.
“Currently, Vietnam is the most attractive destination for North Asian and East Asian markets such as Japan, Korea, and Taiwan.”
Ai added that foreign investors increasingly care about quality services and quality labor force.
"If these elements are secured, Vietnam will remain an attractive destination whatever high industrial real estate rent may be."
A police station has been set up at the Long Thanh International Airport construction site in Dong Nai province to ensure security and traffic safety.
Society - Sun, September 25, 2022 | 8:18 am GTM+7
Vietnam’s benchmark VN-Index decreased to the area close to 1,200 points at the end of this week, down 31 points following the U.S. Federal Reserve’s mid-week interest rate hike of 75 percentage points.
Finance - Sat, September 24, 2022 | 5:02 pm GTM+7
Four hotels on Phu Quoc Island, namely Novotel, Pullman, New World and JW Marriott, were honored Thursday at Haute Grandeur Global Hotel Awards with titles in different categories.
Travel - Sat, September 24, 2022 | 4:18 pm GTM+7
A slew of small- and medium-size commercial banks have hiked their deposit interest rates by 0.3-1 percentage points after the State Bank of Vietnam raised the deposit rate ceiling Friday.
Banking - Sat, September 24, 2022 | 3:10 pm GTM+7
Greater awareness of the opportunities and required policy support are key to expanding the scale, quality and speed of foreign investment in the Mekong Subregion, experts say.
Economy - Sat, September 24, 2022 | 1:24 pm GTM+7
The nation’s largest private conglomerate, Vingroup, has received in-principle approval to build its second auto battery plant in the same economic zone as the first in central Vietnam.
Industries - Sat, September 24, 2022 | 11:59 am GTM+7
Stiffer competition among online shopping sites in Vietnam during the last three months of the year will drive up inner-city warehouse occupancy rates, according to Cushman & Wakefield.
Real Estate - Sat, September 24, 2022 | 10:46 am GTM+7
Vietnam Electricity (EVN) is responsible for negotiating prices and outputs with wind and solar power developers that have failed to meet the country’s feed-in-tariff deadline, says the Electricity Regulatory Authority.
Energy - Sat, September 24, 2022 | 9:05 am GTM+7
Vietnam needs to invest $13 billion in seaport infrastructure by 2030 to improve the handling of container goods from the current 24 million twenty-foot equivalent units (TEU) a year to 30-40 million.
Infrastructure - Fri, September 23, 2022 | 11:07 pm GTM+7
The French Development Agency (AFD) and the Electricite de France (EDF) have signed an agreement on financing Vietnam Electricity (EVN) with EUR1 million ($982,000) to facilitate the latter’s energy transition.
Energy - Fri, September 23, 2022 | 8:29 pm GTM+7
The Central Highlands province of Lam Dong has approved two wind power projects with a total capacity of 40 megawatts and investment of VND4,398 billion ($185.5 million).
Energy - Fri, September 23, 2022 | 4:55 pm GTM+7
CloudEats, a pioneering cloud kitchen company with a presence in Vietnam and the Philippines, has raised a $7 million Series A extension led by Nordstar Capital to reach more Southeast Asian markets.
Industries - Fri, September 23, 2022 | 4:48 pm GTM+7