(MPI) - Vietnam recorded positive signals from foreign direct investment (FDI) attraction in the first six months of 2024 thanks to the drastic direction of the Government, the Prime Minister and the close coordination of ministries, sectors and localities to timely remove bottlenecks and legal barriers related to business and investment activities.

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According to the Ministry of Planning and Investment (MPI), Vietnam remains an important investment destination in the medium and long term amid the ongoing global supply chain restructuring process.

Statics show the country attracted nearly 15.2 billion USD in the first half of 2024, increase of 13.1% compared with the same period last year. Both newly-registered capital and adjusted capital saw a year-on-year rise of 46.9% and 35%, respectively. The disbursed FDI hit about 10.84 billion USD, representing a year-on-year increase of 8.2%.

The quality of investment projects has improved considerably as seen in the new investments in and expansion of large-scale projects in the fields of semiconductor, energy, electronics, and products with high added value.

The global economy is forecast to recover weakly and face many significant risks and challenges in 2024 due to complex developments in the post COVID-19 pandemic. Geo-political instability and the continued competition among major countries continue to create impacts on the global economy in the medium and long terms.

New standards and even interventions of some governments to guide investment activities can affect the shift of FDI. Thus, the FDI flows are anticipated to increase slowly and focus more on the countries with geo-political linkages, especially in strategic areas.

However, many domestic and foreign financial institutions believe that Vietnam will maintain a positive pace of FDI attraction this year due to three factors, which are: the important and increasingly reinforced role in the supply chain diversification strategy of multinational companies; positive recovery of economic growth; and stable macroeconomic growth.

Besides, Vietnam holds potential for investing in many pioneering industries. The renewable energy sector is also drawing investors’ interest with a focus on clean energy sources such as solar and wind power, to enhance the electricity supply sustainability.

Investors’ confidence in the country continued to be reinforced. They expressed their belief in the Government’s policies and the future development of the economy, and considered Vietnam an emerging and promising destination in the medium and long terms.

The ministry added that Vietnam must overcome some bottlenecks to grab continued investment, such as quickly preparing skilled human resources, especially for the semiconductors and removing power shortages in localities.

It is also important to simplify procedures and shorten processing time, especially those related to granting investment registration./.

Bao Linh

Ministry of Planning and Investment