Viet Nam enjoys positive signals in foreign investment in 2021: experts
Despite challenges prompted by the complex developments of COVID-19, Viet Nam saw positive signals in foreign investment in 2021, according to an article published on the foreign investment consulting firm Dezan Shira & Associates’ Vietnam Briefing website.
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| A worker at a production line of a Japanese-invested factory in Viet Nam. (Photo: VNA) |
It cited statistics from the Ministry of Planning and Investment, which showed that Viet Nam granted permission to 1,738 new projects last year, posting a year-on-year plunge of 31.1 percent. However, registered capital hit 15.2 billion USD, rising 4.1 percent compared to the previous year.
Economic zones and industrial parks (IPs) attracted 539 foreign direct investment (FDI) projects and 615 domestic ones with combined registered capital valued at 12.8 billion USD, up 15 percent compared to that in 2020.
According to the article, Viet Nam has introduced incentives facilitating investment in IPs.
To support enterprises and recover their business activities, the Vietnamese Government released several support packages, such as a 30 percent corporate income tax reduction applied to all businesses that had revenue of less than 8.8 million USD in 2021. Other support measures were issued in the form of land rent reductions, social insurance and unemployment insurance benefits, and one-time payments.
The country welcomed various large-scale projects last year, including one from LG Display electronics giant, to raise its investment in Hai Phong, a northern port city, by more than 2 billion USD.
The US semiconductor provider Amkor Technology will invest 1.6 billion USD until 2035 to develop a plant in Bac Ninh province.
Danish toy production company LEGO Group will build its 1-billion-USD factory in Binh Duong province.
Regarding Viet Nam’s perspective in 2022, the article believed that thanks to competitive labour costs, preferential tax and investment policies, and its geographically strategic location, the country has become one of the go-to destinations for multinational companies’ manufacturing and assembly needs.
In the year ahead, Viet Nam is expected to recover to pre-COVID growth. Viet Nam’s role as a low-cost manufacturing hub is expected to continue to grow, helped by the further expansion of existing major industry sectors.
Furthermore, infrastructure projects will create more convenient traffic connecting industrial parks with seaports. The demand for land rental and ready-built factories is expected to increase sharply in 2022, according to the article.
(Source: VNA)
