Vietnam remains attractive investment destination forforeign businesses

During a talkshow on foreign direct investment on September 27, President of Samsung Vietnam Choi Joo Ho said, in long term, Vietnam is likely to remain foreign investors’ favoured destination despite rapidly rising Delta COVID-19 infections in Vietnam's Southern region.

"Even though the new wave of COVID-19 infections has been going on since April, in the first 6 months of this year, things are still favorable to Samsung when it comes to reaching the export targets. If the factory that manufactures household electrical appliances in HCMC can quickly resume operations, the company is expected to exceed its export targets", he said.

Its US$200 million research and development (R&D) centre which broke ground in Hanoi in 2020 and is expected to be completed in 2022, will primarily focus on global science and technology development trends, with things such as artificial intelligence (AI), the Internet of Things (IoT), big data, and 5G networks, in order to help support Vietnam's digital transformation and anticipate changes relating to Industry 4.0.

According to the head of Samsung Vietnam, Vietnam is providing an attractive investment environment for all foreign investors, which for instance includes: abundant labor resources, a stable socio-political situation, infrastructure for manufacturing and circulation along with investment incentives.

"Most notably, the strategic resolution no. 105 recently approved by the Prime Minister is a good piece of news for foreign investors. Just as what the Prime Minister’s strategy has laid out, if Vietnam implements effective pandemic response measures while also facilitating to a further extent the favorable conditions for circulation, manufacturing and the sustaining of stable supply networks, then foreign investments shall continue to be maintained", he said, according to Chinhphu.vn.

The fourth outbreak of the COVID-19 pandemic starting from late April has had more negative impacts on daily life as well as socio-economic development than the previous waves in the country.

However, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, foreign investment inflows into Vietnam during the first nine months of this year rose 4.4 per cent year-on-ear to US$22.15 billion despite the impact of COVID-19,

Up to 1,212 foreign-invested projects were licensed with a total registered capital of $12.5 billion in the period, down 37.8 per cent in the number of projects but up 20.6 per cent in value over the same period last year.Meanwhile, 678 operating projects were allowed to raise their capital by $6.6 billion, a year-on-year rise of 25.6 per cent.