Vietnam enjoys good results in foreign direct investment (FDI) attraction, Photo: VNA

Russia's Sputnik news agency said last year, Vietnam enjoyed good results in foreign direct investment (FDI) attraction, and drew hundreds of millions of US dollars right at the beginning of 2022, which showed the strong confidence of investors, including many giant firms such as Foxconn, Pegatron, Wistron, LEGO and Nike, in the country's economic prospects.

Sputnik cited statistics from the General Department of Vietnam Customs showing that Vietnam earned a record amount of $57.54 billion from exporting telephones and accessories in 2021, a rise of 12.4% year on year, and a 25-fold increase from the $2.3 billion recorded in 2010.

According to Sputnik, the result was firstly attributable to the Republic of Korea’s Samsung Group, whose revenue accounted for nearly 20% of Vietnam’s GDP last year. As of the end of 2021, Samsung had invested $18 billion in Vietnam. Currently, more than 50% of Samsung’s cell phones are produced in Vietnam. Smart mobile devices manufactured in Vietnam are being exported to 128 countries and territories in the world.

The number of orders for Vietnam is rising thanks to the strong workforce and low labour cost. Photo: Vietnam Economic News

According to Sputnik, experts predicted that Vietnam will become the largest production hub of Nike. The CNBC quoted the world leading sportwear producer's financial report as saying that in 2021, Vietnam produced 51% of its global production.

The situation is similar for Adidas, Nike’s rival, with 40% of its footwear being made in Vietnam.

Experts held that the number of orders for Vietnam is rising thanks to the strong workforce and low labour cost, along with smooth investment environment, stable political situation, good infrastructure, attractive incentives for investors, and the country’s success in pandemic control, Sputnik highlighted.

Over $2.1 billion of foreign investment poured into Vietnam in January

The inflow of foreign investment into Vietnam hit over US$2.1 billion in January, up 4.2% year-on-year, marking good signals for the country's investment attraction, according to the latest report from the Foreign Investment Agency (FIA), as cited by Viet Nam News.

Following the recovery from the end of 2021 after the impact of the Covid-19 pandemic, many foreign-invested enterprises have stabilised and expanded their production and business activities. Thus, disbursement of foreign direct investment (FDI) also saw a positive increase of 6.8% to surpass $1.61 billion during the first month of this year, FIA said in its report.

According to the report, up to 103 new foreign-invested projects were licensed with a total registered capital of nearly $388 million, 2.2 times higher than last January in terms of the number of projects but down 71% year-on-year in value.

Garment products are made by workers of RoK KH Vina Co in the central province of Thanh Hoa. Photo: VNA

Although registered investment capital decreased compared to the same period last year due to a lack of large-scale projects, an increase in the number of new investment projects showed the confidence of foreign investors in the country's investment environment, FIA said.

Meanwhile, 71 operating projects were allowed to raise their capital by $1.27 billion, up 54.3% in project number and nearly triple the level of capital seen in the same month last year.

Capital contributions and share purchases by foreign investors stood at $444 million, up two times over the last year's corresponding month.

Among 15 sectors receiving FDI in the first month, processing and manufacturing took the lead with over $1.2 billion, accounting for 58.9% of the total FDI. Real estate came next with $472 million or equivalent to 22.5%. Administrative sectors and supporting services; wholesale and retail were the runners-up with over $221 million and $52.5 million, respectively.

As per the data, Singapore led 33 countries and territories investing in Vietnam with total investment capital of nearly $666 million, making up nearly 31.7% of the total FDI registered in the country. However, the total investment of Singaporean investors plunged 2.2% year-on-year.

The RoK ranked second with over $481 million, up five times year-on-year or equivalent to 30% of the total FDI. Mainland China came third with nearly $451 million, down 27% or 21.5%. Other leading sources of Vietnam's FDI were from Japan, Hong Kong and Taiwan.

According to FIA, foreign-invested businesses posted a trade surplus of above $1.6 billion in January.

As of January 20, the country was home to 34,642 valid foreign-invested projects worth nearly $415.6 billion. Of the sum, $253.2 billion or 61% has been disbursed./.

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