Vietnam’s attractiveness as an “investment destination”
According to the International Investment Research Institute, this is the time when the fourth wave is forming when Vietnam becomes a comprehensive strategic partner of the US, attracting the attention of many large technology corporations in the world to explore Vietnam investment incentives in high-tech industries. So, Why invest in Vietnam?
1. FDI capital in Vietnam continues to be positive
Vietnam continues to be an effective investment destination for FDI enterprises. According to the General Statistics Office, from the beginning of this year to the end of October, the total registered foreign investment capital in Vietnam reached nearly 31.4 billion USD, an increase of 1% over the same period last year. There are a lot of investment opportunities in Vietnam for FDI enterprises. Many international organizations also highly appreciated Vietnam’s economic development results in the third quarter, and at the same time raised their forecast for Vietnam’s growth in the whole year of 2024.
According to recent statistics, with 2,450 projects and a total investment capital of more than 28 billion Euros by mid-2024, Europe ranked 6th in the region with the most direct FDI investors in Vietnam. This figure is expected to improve significantly when in the recent BCI index report published by EuroCham, 69.3% of European enterprises predicted that Vietnam’s business environment would be favorable in the next 5 years.
Vietnam investment incentives are very attractive to foreign investors
Sharing with the press recently, Mr. Nguyen Hai Minh – Vice President of the European Chamber of Commerce in Vietnam (EuroCham) cited evidence and commented that 70% of enterprises participating in the survey said that Vietnam is an attractive investment destination and are ready to introduce Vietnam as an investment destination in the near future. The majority of 55% of enterprises have been expanding and have plans to expand in the near future. According to Mr. Nguyen Hai Minh, this is a very positive reflection and survey result for Vietnam.
According to the International Monetary Fund (IMF), Vietnam will continue to record a high growth trend in the world in 2024, due to a favorable investment environment. These factors make Vietnam expected to continue to be a bright spot in attracting FDI in the near future.
Mr. Paulo Medas – Head of the Article IV Consultation Delegation, IMF, commented that Vietnam is one of the countries with the highest growth in the world, strong exports, and good foreign investment attraction. Vietnamese enterprises need to continue to proactively respond to external risks; banks need to strengthen their capacity, stabilize and make the capital market healthy to support enterprises in sustainable investment.
2. Vietnam investment guide – Building a roadmap to attract FDI
Despite many positive signs, according to economic experts, attracting foreign investment in Vietnam still faces many challenges that need to be addressed, requiring more effective strategies and Vietnam foreign investment laws to improve the situation.
In addition, according to experts, Vietnam needs to improve the investment environment and Business opportunities in Vietnam, increase resilience and sustainability through linking FDI with domestic enterprises, developing green industry, energy conversion; developing basic production technology capacity to serve the circular economic model; and a transparent, long-term and predictable policy environment.
In the long term, Vietnam also needs to build a specific roadmap to attract FDI as well as have specific programs on training human resources to serve businesses, including foreign-invested enterprises and Industries to invest in Vietnam. In addition, the “story” of the human resources team that meets the requirements of FDI enterprises also needs to be taken into account.
Most recently, at the Parliament, the National Assembly discussed the draft Law on Corporate Income Tax (amended), in which one of the goals of amending the law this time is to perfect preferential policies to attract investment capital in general and foreign investment in particular.
According to Professor, Dr. Nguyen Mai – Chairman of the Association of Foreign Invested Enterprises in Vietnam, preferential policies to attract FDI capital are mainly reflected in incentives on corporate income tax (CIT), import and export tax, incentives on land access, and ease of administrative procedures. Low CIT rates are always an attractive point for businesses.
FDI in Vietnam: Policies & Prospects
3. Tax incentives help Vietnam gain competitive advantage
Recently, during his working visit to Denmark, Deputy Prime Minister Tran Hong Ha worked with leaders of leading Danish corporations such as A.P Moller-Maersk, the world’s leading shipping and logistics company; attended a roundtable dialogue with a number of Danish enterprises and worked with C.I.P Group, which is currently investing in an offshore wind power project in Vietnam.
The Deputy Prime Minister emphasized that the cooperation between Vietnam and Denmark has achieved many remarkable achievements. The presence of Danish enterprises in Vietnam is increasing, with a total investment capital of up to 2 billion USD.
Vietnam is considered a potential market with many attractive investment opportunities. Vietnam will continue to improve the investment and Business opportunities in Vietnam environment, perfect the legal corridor and create favorable conditions for businesses to operate.
Over the past 20 years, Vietnam has emerged as a major manufacturing hub and deeply integrated into the global supply chain. Since 2017, exports have increased by an average of more than 13% per year, dominated by foreign-invested enterprises.
Above is the Vietnam investment guide from S4B Vietnam to you. If your company is looking for opportunities to invest in Vietnam, please contact us. S4B Vietnam specialized in providing professional accounting, tax compliance services, and full packaging compliance to representative offices to foreign invested company and representatives office in Vietnam.
If you have any questions, please contact the hotline for support.
S4B Vietnam
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