Vietnam has become a magnet for foreign direct investment (FDI). FDI inflows to Vietnam stood at $2.4 billion in 2006, or 0.2 per cent of the global FDI flows. This has grown to $14.1 billion and 1 per cent in 2017. This share is set to rise further as more multinationals seek to set up manufacturing production in the country. In the first four months of this year, there have been 1,082 new projects that were granted investment certificates, with the total registered investment capital amounting to $5.34 billion, a 50 per cent increase from the same period last year. What attracts foreign investors to Vietnam are its political stability, a welcoming policy environment, skilled and competitive labour force, and access to the global market place with the country securing free trade agreements which will cover 60 per cent of the world’s GDP. The benefits of FDI to the Vietnamese economy are evident in the strong GDP growth performance, the rapid rise in the country’s total … [Read more...] about What’s needed to shift towards higher quality investment?
What attracts foreign investors to a country
Vietnam becomes increasingly more attractive to foreign investors
Sushant Palakurthi Rao - head of Global Partnerships at Agility that has offices in over 100 countries, including ASEAN - attended the recent 27th World Economic Forum on ASEAN (WEF ASEAN) in Hanoi. He granted an interview to the press on FDI-related issues. Following is the full text of the interview. Vietnam has become an increasingly attractive destination for foreign investors. Photo: vtv.vn Reporter: Over the last 30 years, Vietnam has actively improved its business environment in order to attract more foreign investment. How do you assess the results achieved from this? Sushant: We heard at the WEF ASEAN conference from Vietnamese Prime Minister Nguyen Xuan Phuc and other leaders as how FDI is growing in the country. From the mere USD 10 billion in 1988 when Vietnam first started absorbing FDI, the country’s total export revenue is now expected to hit USD 225 billion in 2018. FDI firms have made up 20 percent of the total State budget collection, … [Read more...] about Vietnam becomes increasingly more attractive to foreign investors
Vietnam becomes increasingly attractive to foreign investors
Sushant Palakurthi Rao – head of Global Partnerships at Agility (Photo: VNA) Hanoi (VNA) – Vietnam has become an increasingly attractive destination for foreign investors. The international manufacturing sector is moving to Vietnam and more FDI is flowing into the country, showing growing confidence among investors in the market, according to a representative from Agility – a leading global logistics group. Sushant Palakurthi Rao – head of Global Partnerships at Agility that has offices in over 100 countries, including ASEAN – attended the recent 27th World Economic Forum on ASEAN (WEF ASEAN) in Hanoi. He granted an interview to the Vietnam News Agency on FDI-related issues. Following is the full text of the interview. Reporter: Over the last 30 years, Vietnam has actively improved its business environment in order to attract more foreign investment. How do you assess the results achieved from this? Sushant: We heard at the WEF on ASEAN conference from … [Read more...] about Vietnam becomes increasingly attractive to foreign investors
Foreign investors concerned about tax incentives and procedures
Bui Ngoc Tuan, deputy general director of Deloitte Vietnam with the representation about tax incentives situation and solutions This was messaged by Bui Ngoc Tuan, deputy general director of Deloitte Vietnam, at the workshop themed “Investment Incentives, related party transactions: Situation and solutions” organised by the Ministry of Planning and Investment and the Ministry of Finance in collaboration with Deloitte in Hanoi on July 10. According to Tuan, the tax incentive policy and the investment procedures are two major factors impacting the investment decisions of foreign investors. In general, foreign investors are quite pleased with the existing tax incentive policies of Vietnam, which create favourable conditions for them to invest in new projects and expand their operations in Vietnam. Especially, there are continuous decreases in corporate tax rate, which went from 32 per cent in 2000 to 20 per cent in 2018. With the exemption of Singapore, the corporate tax … [Read more...] about Foreign investors concerned about tax incentives and procedures
99 years’ land-use term proposed to charm investors to SAEZs
While the proposal to extend the land use duration for investors at special administrative-economic zones (SAEZs) to a maximum of 70 years did not enjoy widespread support, Tran Quang Chieu, standing member of the National Assembly Finance and Budget Committee, explains why he went a step further and proposed a maximum of 99 years. Tran Quang Chieu Land use is a sensitive issue, particularly when it comes to foreign investors. Why did you propose extending investors’ land use duration at SAEZs to 99 years? In my view, based on the investment projects’ scale and investors’ proposals, the SAEZ chairman shall be allowed to expand the land use duration of production and business projects at SAEZs to a maximum of 70 years. In special cases, the duration of land use might be extended to a maximum of 99 years, subject to the prime minister’s approval. These regulations aim to set SAEZs apart from economic zones (EZs), industrial parks, and export processing zones … [Read more...] about 99 years’ land-use term proposed to charm investors to SAEZs