In 2023, Vietnam will reach a record with 36,6 billion USD in foreign investment (FDI). Right at the beginning of 2024, Vietnam's FDI attraction activities were very exciting with projects of hundreds of millions of dollars. This creates the expectation that FDI capital flows into Vietnam will continue to grow well in potential and strong areas of Vietnam in the coming year.
Localities and sectors are expected to attract investment in 2024
Provinces and cities have many advantages in attracting foreign investment (good infrastructure, stable human resources, efforts to reform administrative procedures and dynamism in investment promotion,...) such as Hanoi, Ba Ria - Vung Tau, Bac Giang, Bac Ninh, Dong Nai, Hai Phong, Ho Chi Minh City. These 7 localities alone accounted for 72,1% of new projects and 82,5% of the country's capital in January 1.
CSemiconductor hip continues to be expected to be an exciting field in welcoming the wave of foreign investment this year. At the 14th meeting of the People's Council of Bac Giang province at the end of 2023, Mr. Duong Van Thai, Secretary of the Bac Giang Provincial Party Committee also said that many foreign enterprises manufacturing semiconductors and chips are investigating investment in Bac Giang. . Investors demand high quality human resources. Therefore, this locality is focusing on training human resources to meet the needs of investors.
According to Nikkei Asia, many of the world's top selling chip businesses such as Nvidia and Samsung are looking to expand their chip business in Vietnam. It is expected that Vietnam will receive millions of dollars from the US Science and CHIPS Act, and is also home to Intel's largest global assembly and testing factory.
Assessing the vibrant investment situation compared to the same period in 2023
A report from the Foreign Investment Agency (Ministry of Planning and Investment) shows that in January 1, Vietnam attracted foreign direct investment (FDI) of more than 2024 billion USD, up 40,2% over the same period and up 8,1 percentage points compared to the end of 2023. Implemented capital of foreign investment projects is estimated at about 1,48 billion USD, an increase of 9,6% over the same period in 2023. Newly registered investment capital in January 01 increased sharply over the same period due to an increase in the number of foreign investment projects. number of new projects (up 2024%) and projects with large investment capital (more than 24,2 million USD).
New investment increased both in number of projects and total registered capital. With a 24,2% increase in the number of projects and a number of large projects with investment capital of hundreds of millions of dollars newly registered, the total newly registered investment capital in January 01 increased by 2024%. compared to the same period.
Responding to global minimum tax
Samsung and Intel are planning to expand investment in Vietnam
According to assessment from the Ministry of Planning and Investment, Many large corporations and businesses in the electronics and semiconductor industries are present and planning to expand investment in Vietnam. such as Intel, Samsung, Synopsys, Qualcomm, Infineon, Amkor,... This is proof of Vietnam's key and increasingly important role in the global semiconductor supply chain. (For example: Nvidia (USA) ) committed to making Vietnam the Group's second homeland; Hana Micron (Korea) inaugurated phase 2 and increased total investment in Vietnam to 1 billion USD; LG Innotech (Hai Phong) invested expanding the project by an additional 1 billion USD in the field of electronic product manufacturing...).
However, the world and regional context continues to fluctuate in complexity, therefore The situation of attracting FDI investment in Vietnam in 2024 has many more difficulties and challenges than opportunities and advantages.; Investors are tending to look for investment opportunities in neighboring countries to shorten the supply chain. Many countries such as Korea and Japan - among the largest sources of FDI from Vietnam, the US and some countries in the EU - are trying to limit foreign investment by reducing corporate income tax and increasing incentives. domestic investment to recover foreign investment capital.
Vietnam's response to the impact of the Global Minimum Tax
According to some assessments, opportunities to attract FDI investment in 2024 are opening up like in 2008, when Vietnam had just joined the WTO. Factors such as the battle to control core technology, chip technology... are opening up opportunities for Vietnam to attract high-tech FDI.
However, Vietnam still There needs to be a solution to create a competitive advantage when applying global minimum taxes, while reforming the business environment to be more flexible.. In addition, protecting intellectual property rights and improving the quality of human resources need to be done better to meet the needs of investors.
Vietnam needs to review and adjust foreign investment policies in accordance with global investment trends. Continue to reform administrative procedures, especially the implementation of procedures after granting investment registration certificates such as land, construction, fire prevention, environment, customs,...
At the same time, Vietnam needs to soon issue appropriate policies to adapt effectively and flexibly to the impact of global minimum tax., ensuring investor confidence, maintaining the attractiveness of the investment environment.
