Registered FDI capital into Vietnam reaches over US$8.9 billion in first quarter

Tuesday, 29/03/2022 22:32
According to the Foreign Investment Agency under the Ministry of Planning and Investment , registered foreign direct investment (FDI) capital into the nation reached over US$8.9 billion as of March 20, equaling 87.9% over the same period in 2021.
Photo for illustration (Source: VOV)

Along with newly-registered investment capital continuing to fall, both adjusted investment capital and capital contribution and share purchases increased sharply compared to the same period from last year, reported VOV.

The US$1.32 billion LEGO Manufacturing Vietnam (Denmark) Co., Ltd. project is the only investment of US$1 billion and has been granted investment certification with the goal of manufacturing toys and exercising the right to import, export, and conduct wholesale and retail goods in the southern province of Binh Duong.

Through this the project has made an important contribution to bringing the total foreign investment capital into the country over the past three months to US$8.9 billion.

Furthermore, along with recently-granted schemes, according to the Foreign Investment Agency, the first quarter of the year saw 228 projects registering for adjustment of investment capital, marking an annual rise of 41.6%, with total registered capital of more than US$4.06 billion, up 93.3% from 2021.

With continuous and effective support provided by the Government and competent agencies, alongside efforts made by the business community to overcome the pandemic and adapt to the new situation, local businesses have gradually recovered. As a result they have been capable of maintaining and expanding production and business activities, the Foreign Investment Department said.

According to the Foreign Investment Agency the situation relating to foreign investment in the nation has shown positive signs. This can be seen as the total amount of FDI in new and existing projects, capital contribution, and share purchases made by foreign investors has all increased compared to the previous year in terms of both quantity and overall investment capital level.

Many projects on manufacturing electronic and high-tech products have since expanded their capital on a large scale over the first three months of the year.

Although newly-registered investment capital dropped sharply, leading to a fall in terms of total investment capital throughout the reviewed period, the number of new investment projects continued to grow by 37.6%.

This indicates that, despite facing the adverse effects of the COVID-19 pandemic, foreign investors remain confident of the Vietnamese economy and investment environment moving into the new normal, while making new investment decisions, as well as expanding existing investments.

The reopening of tourism from March 15, coupled with a visa-free policy for some countries and trend of capital shift of European investors due to the influence of the Russia-Ukraine conflict, will also affect the attraction of foreign investment to the country moving forward, the agency said.

Viewed from another angle, the first quarter of the year witnessed foreign financiers invest in 18 sectors out of 21 national economic industries.

Of the figure the processing and manufacturing industry led the way with a total investment of over US$5.3 billion, thereby accounting for 59.5% of total registered investment capital, followed by real estate businesses at nearly US$2.7 billion, thereby making up 30.3% of total registered investment capital.

Regarding investment partners, Singapore remained the largest investor in the Vietnamese market with a total investment of nearly US$2.29 billion, accounting for 25.7% of total investment capital, a drop of 50.1% over the same period from 2021. The Republic of Korea ranked second with approximately US$1.61 billion, accounting for 18% of total investment capital, representing a 35.6% rise on-year.

Meanwhile, the United States was Vietnam's largest export market in the first quarter of 2022, with an estimated turnover of US$25.2 billion.

Most notably with a large-scale LEGO project, Denmark ranked third with a total registered investment capital of roughly US$1.32 billion, accounting for 14.8% of total FDI capital in Vietnam.

Report on Business Law Flow 2021 released

According to VOV, the Vietnam Chamber of Commerce and Industry (VCCI) on March 29 publicised its Report on Business Law Flow in 2021, the fourth edition since 2018, which reviews laws related to business in the year and reflects the view of enterprises to drafted or issued policies.

The report analyses various important legal issues affecting the business environment. This edition focuses on the quality of circulars, dispartches and the Sandbox legal space.

VCCI President Pham Tan Cong expressed his hope that the report is a useful information source for businesses, business associations and State agencies.

He noted that last year, the implementation of the Government’s resolution on cutting and simplifying regulations related to business activities in the 2020-2025 period was sped up. The majority of the ministries have built their own plans to reduce compliance costs towards the goal of cutting at least 20% of the cost in current legal regulations, he said, commenting that the business environment has become smoother thanks to the efforts.

However, the VCCI leader also pointed to the fact that policy-making activities in 2021 resulted in tighter regulations for businesses, while there remain legal documents that create new barriers and burden on enterprises.

Cong stressed the need to improve the quality of circulars at the ministry level and make the implementation of policies faster and smoother.

Meanwhile, Dau Anh Tuan, head of the VCCI Legal Department, said last year - the first year of the new-tenure National Assembly - policies related to COVID-19 created a great support to businesses, removing bottlenecks and creating favourable conditions for business activities and companies.

The report pointed out a number of problems in circulars and official dispatches which are closely related to businesses’ operations. It also clarified that amid the Government’s efforts to promote administrative reform activities and cut down compliance costs, a number of proposed policies in 2021 tended to increase business conditions.

Vietnamese furniture firms strive to further join global supply chain

The Vietnam Furniture Matching Week 2022, a major event of the domestic wood and furniture sector this year, will take place from April 13-20 in Ho Chi Minh City, VNA reported a press conference on March 29.

Vietnamese furniture enterprises have seen their orders fully booked until the third quarter, even the end of this year. (Photo: VNA)

With diverse activities, to be held in both online and offline forms, the event is intended to seek solutions to help local firms expand their business network and further integrate into the global supply chain.

Nguyen Chanh Phuong, Vice President of the Handicraft and Wood Industry Association of HCM City (HAWA), said Vietnamese furniture enterprises have seen their orders fully booked until the third quarter, even the end of this year, as the global demand has been on the rise.

However, the COVID-19 pandemic and global uncertainties have disrupted the supply chain and led to high logistics costs, he noted.

Therefore, the event is expected to support domestic furniture and handicraft firms not only to expand their consumption markets but also access the best logistic services, Phuong said.

Within the framework of the programme, there will be Furniture Sourcing Day on April 13-14, which will enable businesses to approach international buyers and suppliers of support services, along with exchanges and workshops, according to organisers.

Vietnamese furniture firms strive to further join global supply chain (Source: VOV)

The programme will bring together some 500 businesses, more than 100 representative offices and international buyers.

Online activities will take place on HOPE (hopefairs.com) platform, which has been upgraded to make it easier for participating businesses and international buyers to hold meetings anytime and anywhere.

According to Tracy Tran, representative of Mitchell Gold Bob Williams in Vietnam, Vietnamese wooden products and furniture have been highly valued thanks to their quality and reasonable prices./.

Consumer goods and services survey to start

The Vietnam Consumer Protection Association (VCPA) will start a survey programme for consumer-trusted goods and services in 2022.

Consumer goods and services survey to start (Source: VNA)

To effectively implement the Party Central Committee’s Secretariat on strengthening the campaign “Vietnamese people give priority to using Vietnamese goods,” goods and services will be surveyed according to quality, information, consumer choice, models and reasonable and competitive prices, reported VNA.

The survey will be posted on the VCPA’s website.

From April 1 to November 20, customers will take the survey through a questionnaire, which will then be appraised by professionals. After the survey, the top 100 goods and services will be chosen.

A ceremony to announce survey results and award Certificates to 100 trusted consumer goods and services in 2022 will be held on November 26 in Hanoi.

Local media reported Vietnam’s middle-class is expected to grow, spreading out geographically and becoming more diverse. The COVID-19 crisis and consumption are expected to expand and define the future as incomes rises.

According to recent McKinsey Global Institute research, Vietnam is well-positioned to be a significant driver of the next chapter of Asia’s consumption story.

Over the next decade, 36 million more people may join Vietnam’s consuming class, defined as consumers who spend at least US$11 a day in purchasing power parity terms.

New consumption power emerges from those who have entered the consuming class for the first time, along with the consuming class’s sharp rise within the income pyramid.

According to the research, the two highest tiers of the consuming class may account for 20% of Vietnam’s population by 2030.

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