VAFIE publishes Vietnam FDI annual report

By Tuong Thuy
Tue, May 10, 2022 | 3:51 pm GMT+7
A production line of Korean auto brand Hyundai in Vietnam. Photo by The Investor/Trong Hieu.

A production line of Korean auto brand Hyundai in Vietnam. Photo by The Investor/Trong Hieu.

Vietnam’s Association of Foreign Invested Enterprises (VAFIE) has published an English-Vietnamese annual report on foreign direct investment in the country, with the first unveiled on Tuesday.

The report comprehensively assesses the results of FDI attraction and use, business activities of FDI companies, and analyze Vietnam’s investment environment. It also includes opinions and suggestions from economic experts, investors and owners of FDI enterprises, which will be useful inputs for Vietnamese policy makers.

The 250-page overall review of FDI in Vietnam in 2021, which also contains comparisons with the ASEAN region and some other countries, is a partnership between VAFIE and auditing firm KPMG Vietnam, with supports from Fiin Group and a number of economic experts.

Addressing Tuesday’s report launching ceremony in Hanoi, VAFIE Chairman Professor Nguyen Mai highlighted the FDI sector's significant role in Vietnam’s development.

Vietnam first introduced its Law on Foreign Investment in December 1987. Together with the law, political and economic reforms (or Doi moi) launched in 1986 have transformed the Southeast Asia country from one of the poorest nations in the world to a middle-income country within a quarter of a century.

The rise of this aspiring Asian tiger economy resulted from a shift from a centrally planned to a market economy, with the resulting inflows of FDI, emergence of the domestic private sector and a more globalized approach to business and trade as a result of Vietnam’s WTO accession in 2007, which has driven its economic growth engine.

Prof. Mai said the FDI sector has become a key growth engine of Vietnam, now accounting for a quarter of the country’ total investment capital and 55% of the total industrial production value. Among the FDI enterprises are majors in oil and gas, manufacturing, information technology, telecommunications, financial services, banking, insurance, auditing, hospitality and other business areas.

The FDI bloc currently accounts for more than 70% of export turnover in this export-driven economy, one of the fastest growing in Asia and the world, he said. Thanks to that, Vietnam has won global recognition for its development and poverty reduction successes on the back of rapid economic growth during the past three decades.

Amid the background, VAFIE has been aware of the need to work out an English-Vietnamese annual report on the overall FDI picture in Vietnam, based on the approach of the United Nations Trade and Development Forum (UNCTAD) Annual Report, and the ASEAN FDI Annual Report by the ASEAN Secretariat.

Work for the report started last December. In completing the publication, VAFIE has received comments and suggestions for correction from the Legal Department, the Economic Zones Management Department, the Central Institute of Economic Management (CIEM), and the Development Policy Institute – all under the Ministry of Planning and Investment, said Dr. Nguyen Anh Tuan, VAFIE Permanent Vice Chairman.

“Published for the first time, the annual report still has room for improvement. However, VAFIE believes the pubication will be a useful information resource for policy-makers, research and training institutions, FDI enterprises, and international investors,” he said.

Comments (0)
  • Read More
Construction of $2.3 bln central Vietnam LNG power plant to restart in 2026

Construction of $2.3 bln central Vietnam LNG power plant to restart in 2026

Construction of the 1,500-MW Hai Lang Power Center project in Quang Tri province will restart on January 1, 2026, the project investor has informed local authorities.

Energy - Sun, November 17, 2024 | 8:00 am GMT+7

Vietnam-China partnership to enable export of Kim Long brand cars

Vietnam-China partnership to enable export of Kim Long brand cars

Vietnam’s Kim Long Motor and Futa Group have struck a strategic cooperation agreement with China’s Dongfem Dana that will enable the production and export of cars under the Kim Long brand, executives said Friday.

Companies - Sat, November 16, 2024 | 7:13 pm GMT+7

Northern Vietnam province attracts $124 mln investment from Taiwan firm

Northern Vietnam province attracts $124 mln investment from Taiwan firm

Taiwan-based Nien Made Enterprise Co., Ltd. will invest $124.1 million to make furniture accessories at Phu Ha Industrial Park in the northern province of Phu Tho.

Industries - Sat, November 16, 2024 | 7:01 pm GMT+7

Vietnam’s first LNG-fired power plants to enter commercial operation in Jun-Sept 2025

Vietnam’s first LNG-fired power plants to enter commercial operation in Jun-Sept 2025

Nhon Trach 3 and Nhon Trach 4, Vietnam’s first LNG-to-power plants, will begin commercial operations in June and September 2025, respectively, says project investor PV Power.

Energy - Sat, November 16, 2024 | 3:20 pm GMT+7

Vinhomes spends $276 mln on buying back 162 mln shares, more than half to go

Vinhomes spends $276 mln on buying back 162 mln shares, more than half to go

Vinhomes, the largest housing developer in Vietnam, has spent around VND7 trillion ($275.7 million) on implementing its record buyback plan since kick-starting it on October 23.

Finance - Sat, November 16, 2024 | 1:21 pm GMT+7

Indonesia secures funding for green power infrastructure at COP29

Indonesia secures funding for green power infrastructure at COP29

Indonesia has attracted EUR1.2 billion ($1.26 billion) worth of green funding for the electricity sector from Germany’s Kreditanstalt für Wiederaufbau (KfW) at the 29th UN Climate Change Conference of the Parties (COP29) in Baku, Azerbaijan.

Southeast Asia - Sat, November 16, 2024 | 10:10 am GMT+7

Hanoi-based fledgling firm spends $12.3 mln on buying 17.2 mln shares of lender VIB

Hanoi-based fledgling firm spends $12.3 mln on buying 17.2 mln shares of lender VIB

Hanoi-based Quang Kim Development and Investment JSC acquired 17.2 million shares of Vietnam International Commercial Joint Stock Bank (HoSE: VIB) on Monday.

Banking - Sat, November 16, 2024 | 9:47 am GMT+7

Vietnam can utilize Trump’s policies to enhance position in global supply chains: experts

Vietnam can utilize Trump’s policies to enhance position in global supply chains: experts

Vietnam can take the advantage of protectionist economic policies by Donald Trump, the 47th president of the U.S., to strengthen its position in global supply chains, attract foreign investment, and drive sustainable economic growth, write Dr. Tran Ngoc Mai and Prof. Dr. Doan Ngoc Thang, lecturers at the Banking Academy of Vietnam.

Top News - Sat, November 16, 2024 | 9:30 am GMT+7

Former provincial Party chiefs receive warnings for Thuan An Group-related violations

Former provincial Party chiefs receive warnings for Thuan An Group-related violations

The Politburo, Vietnam’s highest decision-making body, has issued warnings to Nguyen Xuan Ky, former Party chief of Quang Ninh province, and Bui Van Cuong, former Party chief of Dak Lak province, for violations related to Thuan An Group.

Politics - Sat, November 16, 2024 | 9:24 am GMT+7

GenAI set to increase Thai GDP by 6% by 2030

GenAI set to increase Thai GDP by 6% by 2030

Generative artificial intelligence (GenAI) is projected to raise Thailand's GDP by 6% by 2030, with hefty contributions from the trade and manufacturing sectors, according to a joint online survey by SCB X and SCB Economic Intelligence Centre (SCB EIC) of the country.

Southeast Asia - Sat, November 16, 2024 | 9:00 am GMT+7

Thailand prepares for nuclear energy

Thailand prepares for nuclear energy

Thailand’s Energy Regulatory Commission (ERC) will start looking into the legal aspects of a small modular reactor project this month to prepare Thailand for using nuclear energy.

Southeast Asia - Sat, November 16, 2024 | 8:30 am GMT+7

Data is money, big money: Vietnam tech giant FPT

Data is money, big money: Vietnam tech giant FPT

Vietnamese tech giant FPT Corporation views data as a new resource and is determined to convert it into money and an artery of the economy, says its general director Nguyen Van Khoa.

Companies - Sat, November 16, 2024 | 7:18 am GMT+7

US to support Indonesia in developing small modular nuclear reactors

US to support Indonesia in developing small modular nuclear reactors

The U.S. has pledged to assist Indonesia in accelerating the development of small modular nuclear reactors (SMRs), according to Indonesia's Presidential Office.

Southeast Asia - Sat, November 16, 2024 | 12:13 am GMT+7

Singapore's venture capital market grows increasingly attractive

Singapore's venture capital market grows increasingly attractive

Despite a slump in funding, Singapore’s venture capital market remained active in the first nine months, The Straits Times reported.

Southeast Asia - Sat, November 16, 2024 | 12:08 am GMT+7

VinFast CEO-owned firm secures extra deal to lease EVs to ride-hailing firm

VinFast CEO-owned firm secures extra deal to lease EVs to ride-hailing firm

A taxi service provider based in Vietnam’s central province of Binh Dinh will lease 1,000 VinFast electric cars from an electric vehicle (EV) leasing firm that is 90% owned by billionaire Pham Nhat Vuong, the CEO of the Vietnamese carmaker.

Companies - Fri, November 15, 2024 | 8:35 pm GMT+7

Chinese, Vietnamese firms plan $2 bln renewable energy-hydrogen project

Chinese, Vietnamese firms plan $2 bln renewable energy-hydrogen project

3TI Progetti Asia, a local planning-design business, and two Chinese firms plan to invest $2 billion in a hydrogen production project using renewable energy in Vietnam's south-central province of Ninh Thuan.

Energy - Fri, November 15, 2024 | 7:35 pm GMT+7