According to economic experts, the opportunity for Vietnam to attract more FDI inflows from overseas Vietname is significant as the overseas Vietnamese community is growing and has great economic potential and opportunities to access science and technology platforms in developed countries.

Overseas Vietnamese invest more in 'motherland'

Vietnam has now attracted 376 investment projects by overseas Vietnamese in foreign investment (FDI) with a total registered capital of 1.72 billion USD. These projects mainly focus on the industrial sector: processing and manufacturing.

Vu Van Chung, Deputy Director of Foreign Investment Department (Ministry of Planning and Investment), said that currently, Vietnam had attracted 34,700 FDI projects with a total registered capital of 418.8 billion USD from 141 countries and territories around the world, in which the major FDI partners of Vietnam include Korea, Singapore and Japan.

Many prospects in attracting overseas investment. Photo: Thoi Dai

According to Vu Van Chung, FDI makes a vast contribution to the economy, accounting for about 25% of total social investment and 23% of GDP and contributing from 21-23% of budget revenue and creating jobs for about 6 million workers.

FDI inflows also account for 68-70% of Vietnam's export value and 55% industrial production value. That shows that FDI still plays a vital role in Vietnam's socio-economic development.

Among Vietnam's FDI projects, there are 376 FDI projects of expatriates living in 29 countries around the world investing back home with a total registered capital of about 1.72 billion USD in 42/63 provinces and cities of Vietnam.

The main focus is on energy, processing manufacturing and services.

The Deputy said that the above figures were still relative because they are statistics regarding foreign investment in Vietnam, while indirect investment through remittances and other forms of investment in other countries is costly.

A year of remittances to Vietnam more than 10 billion USD. In 2021, remittances to Vietnam reached 12.5 billion US. This is a huge source of capital to actively serve Vietnam's socio-economic development.

Highrise in Hanoi. Photo: Réka Márkos

Create the best conditions for expatriates to contribute to the construction of the country

According to a representative of the Ministry of Planning and Investment, although compared with the total 34,700 FDI projects and 418.8 billion USD that Vietnam has attracted, the direct investment capital of overseas Vietnamese returning home is still relatively "modest".

However, the opportunity for Vietnam to attract more FDI inflows from overseas Vietnamese is still very large. The overseas Vietnamese community is growing and has economic potential, and it has the opportunity to access science and technology platforms in developed countries.

Vu Van Chung said that Vietnam has also introduced many open-door policies to create favorable conditions for overseas businessmen to return home.

Specifically, in legal terms, when investing and doing business in Vietnam under the Investment Law 2020, overseas Vietnamese citizens are considered Vietnamese citizens if they have Vietnamese nationality.

The law stipulates that investors and overseas Vietnamese can choose policies for overseas Vietnamese who still have Vietnamese nationality and have foreign citizenship. Investment incentives as prescribed by law. For example, the selection according to Vietnamese citizens is applied according to Vietnamese citizenship policy.

The City is slowly coming back to life. Photo: Ollie Le Nguyen

According to economic experts, Vietnam's economy has begun to reopen under the new normal state to recover and develop socio-economically. The government has also introduced many policies to support businesses and investors, creating favorable conditions for them to do business in Vietnam.

On the other hand, Vietnam approved the economic recovery and development program in 2022-2023 with VND 350 trillion.

In addition, issues related to international integration, opening up for economic cooperation, and development have also been created. These are positive signals for Vietnam to attract FDI projects.

In recent years, Vietnam's successful COVID-19 prevention and control has also contributed to improving the reputation and safety of the investment and business environment, encouraging overseas Vietnamese to continue to work invest.

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