A factory belonging to a foreign company. A new wave of foreign direct investment is forecast in Viet Nam due to a variety of reasons. — Photo tapchitaichinh.vn A new wave of foreign direct investment driven by global uncertainty such as the US-China trade war and the COVID-19 pandemic is imminent in Viet Nam, and it will have a much bigger impact on the economy than previous FDI inflows, according to investment fund VinaCapital. Don Lam, the fund’s co-founder and CEO, said FDI inflows into Viet Nam has been extraordinarily high compared to regional peers in the last few years. Last year it topped US$38 billion, up 7 per cent from 2018. Most of it was in manufacturing with foreign companies attracted by Viet Nam’s high-quality, low-wage workforce – factory wages are around a third of China’s – and its proximity to China and the rest of Asian garment, furniture, electronics, and other supply chains, he said. His fund expects the next wave of FDI to be driven by companies relocating their factories out of China and have a bigger impact on Viet Nam’s economy than previous inflows because multinational companies now have an incentive to help local firms “move… Read full this story
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