In 2021, due to the spread of the Covid-19 epidemic in the world,
the economic situation has been seriously affected. This greatly affects the
investment performance of investors making investment in Vietnam.
However, Vietnam government still implements many policies to attract foreign
investors to set up company, make investment, in order to realize the “dual
goal” of fighting the epidemic and developing socio-economic and achieving
economic growth to get the high results.
According to statistics of the Ministry of Planning and
Investment, as of October 20th, 2021, the total newly registered
capital, adjusted and contributed capital to buy shares, and buy capital
contributions from foreign investors reached USD 23.74 billion, which is
accounted for 1.1% more than the same period in 2020. Realized capital of
foreign investment projects is estimated at USD 15.15 billion, accounted for
4.1% over the same period in 2020.
Accumulated to October 20th, 2021, the Vietnam has
attracted 34,266 projects with a total registered capital of over USD 404
billion. The accumulated realized capital of foreign investment projects is
estimated at over USD 247 billion, equal to 61.1% of the total valid registered
investment capital.
Foreign investors have invested in 18 industries out of a total of
21 national economic sectors. In which, the processing and manufacturing
industry leads the way with total investment capital of USD 12.74 billion,
accounting for 53.7% of total registered investment capital. Next is the
electricity production and distribution industry ranked second with a total
investment of USD 5.54 billion, accounting for 23.3% of the total registered
investment capital. Followed by real estate, wholesale and retail businesses
with a total registered capital of USD 2.12 billion and over USD 803 million
respectively.
In terms of the number of new projects, the processing and
manufacturing industry, the wholesale and retail trade, and professional and
scientific and technological activities are the industries that attract the most
projects, accounting for 33.1% and 27.8% respectively, and 16% of total
projects.
There are 97 countries and territories have the investors invested
in Vietnam in the 10 months of 2021. In which, Singapore leads with a total
investment of USD 6.77 billion, accounting for 28.5% of total investment
capital in Vietnam. Korea ranks second with USD 4.15 billion, accounting for
17.5% of total investment capital. Japan comes third with a total registered
investment capital of nearly USD 3.4 billion, accounting for 14.3% of total
investment capital. Investment amount is followed by China, Hong Kong,
Taiwan,…
Foreign investors have invested in 58 provinces and cities in
Vietnam in 10 months of 2021. Long An province leads the way with a total
registered investment capital of USD 3.68 billion, accounting for 15.5% of
total registered investment capital, including a large power project of up to
USD 3.1 billion (accounting for 84.2% of total registered investment capital of
Long An province). Ho Chi Minh City comes to second place with over USD 2.73
billion, accounting for 11.5% of total investment capital. Hai Phong city ranks
third with a total registered capital of USD 2.72 billion, accounting for
nearly 11.5% of total investment capital. Next are Binh Duong, Can Tho, Quang
Ninh,…
In terms of the number of projects, foreign investors still focus
a lot on investing in big cities with convenient infrastructure such as Ho Chi
Minh City, Hanoi, Bac Ninh. In which, Ho Chi Minh City leads in number of new
projects (34.1%), number of adjusted projects (17.7%) and capital contribution
and purchase of contributed capital (59.4%).
In addition, Vietnam has implemented the selective investment
attraction policies (reducing quantity, increasing quality) to eliminate
small-scale projects with little added value. This also partly affects the
number of projects of small investors planning to invest in Vietnam.
To ensure safety in the prevention and control of the Covid-19
epidemic, Vietnam has applied a policy of restricting entry and implementing long-term
isolation, which affects the progress of surveys and implement the procedures
of experts and project development groups.
Due to the impact of the epidemic, Vietnam has implemented a
factory blockade and restricted the movement of workers in industrial zones,
slowing production, reducing capacity and output, and disrupting the supply
chain. This affects the psychology of new investors who are planning to invest
in Vietnam.
In 2021, many factors affect the investment performance of
international investors to Vietnam. However, with many policies to support and
attract investment, Vietnam still becomes an investment destination for many
big investors in the world. In late 2021 and early 2022, with many policies to
attract FDI to revive the economy after the epidemic, Vietnam hopes that
international investors can seize the opportunity to make investment, establish
company, in order to bring the best economic benefits for their business.
Finding the right business partner in Vietnam is also important.
We recommend doing research on the
reputation of the company and individual shareholders,
corporate or individual, gathering publicly available company information, and
performing background checks on key personnel to find potential risks
in cooperation. Working with a reliable partner can help achieve economic
benefits, saving time and money in business.
ANT Lawyers – Law firm in Vietnam with international
standard, local expertise and strong international network. We focus on
customers’ needs and provide clients with a high quality legal advice and
services. For advice or service request, please contact us via email
ant@antlawyers.vn, or call us +84 24 730 86 529.
