Vietnam is named 19th among the world’s top 20 host economies for FDI in 2020. (Photo: VNA)
The country was up five places against last year’s ranking to reach 19th on the list, VNA quoted the World Investment Report 2021 of UN Conference on Trade and Development (UNCTAD).
While global FDI flows fell by 35 percent to 1 trillion USD amid the COVID-19 pandemic, the lowest level since 2005 and almost 20 percent lower than the 2009 trough after the global financial crisis, the FDI in Southeast Asia, considered an engine of global FDI growth for the past decade, contracted by 25 percent to 136 billion USD, said the report.
It stated that Vietnam remained among the three largest recipients in the region with a decline of only 2 percent, while the remaining two of Singapore and Indonesia suffered drops of up to 21 percent and 22 percent, respectively.
According to UNCTAD, a slight decline in FDI to the country was due to significantly lower investment contractions in manufacturing and realty activities.
However, thanks to the rise in investment in electricity projects, including a 5 billion USD gas-fired power plant proposed by ExxonMobil (US) and a 2.2 billion USD coal-fired power plant developed by Thai MNEs in the Quang Tri Economic Zone, the flow of FDI was still okay.
As investors, Singapore and Japan topped the list of countries and territories having investment projects, in which Singapore’s reached 5.64 billion USD, 37 percent of the total and Japan invested 2.44 billion USD, a surge of 67 percent in investment compared to 2019.
UNCTAD pointed out local measures to promote investment, including the permission for certain disputes between foreign investors and the State to be taken to international arbitration, were keys to attract FDI inflows.
The report also said the Vietnamese government has expanded the list of business lines eligible for investment incentives, along with the publishing of a detailed list of conditions applied for businesses to be considered high-tech enterprises eligible for tax incentives as good points.
“Vietnam for the first time introduced a negative list on market access, affording foreign investors with national treatment (NT) except in the sectors included in that list. The country also raised the cap on foreign ownership in domestic airlines.”
According to the report released late June, the US continued to be the world’s largest FDI recipient, followed by China and Hong Kong (China).
UNCTAD expected global FDI flows to bottom out in 2021 and later recover some lost ground, with an increase of about 10-15 percent.
The report said: “This would still leave FDI some 25 percent below the 2019 level,” adding current forecasts show a further increase in 2022 when the upper bound of projections would bring FDI back to the 2019 level.
The report concluded: “Prospects are highly uncertain and will depend on, among other factors, the pace of economic recovery and the possibility of pandemic relapses, the potential impact on FDI of recovery spending packages, and policy pressures.”
In the first six months of 2021, the total FDI commitments to Vietnam declined by 2.6 percent year-on-year to 15.27 billion USD, the FDI disbursement rate, however, rose by 6.8 percent to stay at 9.24 billion USD.
Currently, Vietnam has totally 33,787 foreign investment projects with a combined registered capital of 397.89 billion USD, while the disbursed amount stood at 241.1 billion USD, 60.6 percent of the committed amount.
Local shrimp exports likely to reach US$4.2 billion this year
Vietnamese shrimp exports are anticipated to increase by 12% to reach US$4.2 billion this year compared to last year’s figures, accounting for more than 40% of the domestic seafood industry’s export value, according to industry insiders, reported VOV.
According to information provided by the Directorate of Fisheries, the local shrimp sector will continue to face numerous difficulties over the course of the year due to the complex nature of the COVID-19 pandemic and unpredictable international trade competition.
This will be especially prevalent due to changes occurring in quarantine requirements coupled with food safety regulations being imposed on imported products in several countries.
Most notably, China, one of the nation’s major shrimp import markets, has tighten regulations on importing frozen products, including shrimp, due to the COVID-19 pandemic, a move which has caused shrimp exports to the market to decrease by over 20%.
Furthermore, the Republic of Korean (RoK) market now also requires shrimp products to meet heat treatment regulations in order to be exempt from quarantine requirements.
During the first half of the year, brackish water shrimp output surged by 12% to 371,000 tonnes against the same period last year, with total shrimp export turnover reaching US$1.5 billion.
Shrimp exports ahead in the second half of the year are projected to enjoy robust growth, with the export target anticipated to reach between US$3.8 billion and US$4 billion.
The United States, Japan, China, the EU, and the RoK are considered as the largest consumers of Vietnamese shrimp.
Nguyen Hoai Nam, deputy general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said local shrimp products are exported to 106 markets worldwide, an increase of five markets compared to the previous year.
Aside from these challenges, the domestic shrimp industry will see plenty of opportunities to expand markets for shrimp and tra fish products moving forward thanks to the signing of numerous free trade agreements (FTAs).
HCM City pilots mobile app monitoring home-quarantined people
Ho Chi Minh City is piloting the use of a mobile app developed by military-run telecom group Viettel to continuously monitor close contacts with COVID-19 patients, or F1 cases, who are under home quarantine.
According to VNA, mobile app VHD (Vietnam Health Declaration) will help HCM City, the country’s current largest COVID-19 hotspot, to keep track of the self-quarantined, make sure they strictly observe rules set by the Ministry of Health (MoH) and get updates about their health conditions.
The app has been used by the MoH to monitor how individuals entering Vietnam from pandemic-hit regions observe quarantine rules on a trial basis.
It uses a combination of GPS signals and facial recognition technology to randomly check the whereabouts of individuals under home quarantine and if they break the rules and leave the house.
The home quarantined persons will be required to register their mobile number and a Face ID, along with the location of their houses. They are also required to make a health declaration three times a day and immediately report their health conditions, via the app, if they have fever, cough or shortness of breath to receive support.
HCM City’s Department of Information and Telecommunications and Department of Health have worked together to assist Viettel in organizing four virtual training sessions for medical staff in all districts and Thu Duc City.
The pilot project, which takes place from July 17 – 31, is running in at least one commune of each district and Thu Duc City before it is scaled up citywide./.