‘Bright door’ for FDI capital flows into Vietnam

75% of European business leaders are asked to say they will introduce Vietnam as an ideal investment destination. This is the figure that the European Business Association in Vietnam (EuroCham) “most prominent” in the survey of business confidence index (BCI) in the fourth quarter of 2024.

Bruno Jaspaert, President of EuroCham Vietnam, said the fields such as technology, production, tourism and renewable energy are interested by European investors. “Despite facing global challenges, Vietnam’s active investment environment is creating new opportunities for European businesses,” he said.

Last year, the total foreign direct investment (FDI) in Vietnam reached nearly 38.23 billion USD, 3% lower than 2023, according to the data of the Foreign Investment Department (Ministry of Planning & Investment ). The bright spot is FDI capital increased by 9.4%, reaching 25.35 billion USD. The adjusted capital also increased in both the number of projects (11.2%), and the value (50.4%).

The two largest partners Singapore and South Korea have increased investment in Vietnam last year, equivalent to 31.1% and 37.5%. China led in the number of new projects, accounting for 28.3%. The Foreign Investment Department assessed that foreign investors continue to trust in the Vietnamese investment environment.

In 2025, the global economy forecasts 2.7%, “not too good news”, according to the World Bank (World Bank). Although more optimistic, the United Nations estimates only inched at 2.8%high.

Along with that, many major factors dominate the psychology of international investors such as geopolitical conflicts, policies of US President Donald Trump administration and coping books of economies … are all difficult. Guess.

However, research groups forecasting FDI capital flows into Vietnam remain stable. Two experts Ngo Dang Khoa and Vu Binh Minh of HSBC Bank in recent analysis, saying that foreign capital in production is likely to grow.

This is the result from the diplomatic trips of leaders, opening up investment intentions from many global companies and corporations. In the first half of the 2025 strategic report, the analysis group from VNDirect Securities Company said that Mr. Trump’s return could cause short -term FDI capital flows, when investors carefully reassessed the tax risks. mandarin.

However, in terms of medium and long term, capital flows will be stable and sustainable growth. Because the Republican Party is in power in the US, Vietnam still maintains the attraction thanks to the FDI capital flow is often planned long -term, as well as strong production platforms, highly skilled labor force and taste. Strategic geography.

“Mr. Donald Trump is the US President will accelerate the translation process
Transferring production to other countries that Vietnam continues to be considered a strategic destination thanks to many advantages, ”said Mr. Vu Minh Chi, senior industrial service management at Avison Young Vietnam, said.

Talking more about 75% of European enterprises recognizing Vietnam as an ideal destination, EuroCham president pointed out the increasing belief thanks to the S -shaped country with a solid foundation of trade and economic policy. .

The Japanese investor community has the same view, with more than 56% expected to expand business in Vietnam in the next 1-2 years. This is the highest level in Southeast Asia, according to the 2024 survey of Japan Trade Promotion Organization (JETRO).

The top three advantages in the eyes of Japanese businesses are market size, growth potential, cheap labor costs and stable socio -political situation. All exceeded ASEAN average.

However, foreign investors point out that Vietnam needs to improve the operation of the apparatus and administrative procedures. Jetro attended the top 3 elements that made Japanese businesses hesitated to pour more capital, are administrative procedures, complicated taxes and incomplete legal systems, lack of transparency.

“Improving administrative procedures will be the thrust for investment in Vietnam,” said Nobuyuki Matsumoto, Chief Representative of JETRO Office in Ho Chi Minh City.

Similarly, the administrative burden, unclear and difficult regulations in applying for a license are obstacles stated by European enterprises. EuroCham Jaspaert chairman wallet built a legal framework such as building a house, wanting to be firm.

“The transparent and clear legal process will help the country develop, improve trade and encourage investors to consider Vietnam as their new home,” he said.

Many European businesses expect that the arrangement and streamlining the government apparatus will bring significant improvements in the administrative process. “This is a huge and complicated project, but the achievements such as the developed economy, the growth of FDI, will make all efforts become extremely worthy,” said President of EuroCham Vietnam.

In parallel, 40% of European businesses say the improvement of infrastructure helps reduce transportation costs, increasing foreign trade connection. Dr. Bui Thanh Minh, Deputy Director of the Office, the Private Economic Development Research Board (Board IV) said that the Northern Expressway System is relatively good and needs to continue to promote more in the South. “There is a fact that attracting FDI is better when the infrastructure is synchronized,” he said at the recent forum.

In addition, experts recommend the effective way to promote the existing investors themselves. At the Vietnam Industrial Park Forum at the end of 2024, Mr. Nguyen Dong Trung, Deputy Director of Foreign Affairs Department (Ministry of Foreign Affairs), said that businesses that are doing business in Vietnam are messengers who attract investment.

Mr. Ha Duy Tin, General Director of Hoa Phu Industrial Park (Vinh Long), Vice Chairman of Vietnam Real Estate Association (Virea) recounted this practical experience. Accordingly, nearly 90% of investment projects in Hoa Phu Industrial Park are from foreign investors such as Japan, Korea, China, the US and Australia. Decades ago, this place attracted FDI projects thanks to cheap labor, low land rent.

However, that advantage is now over. Therefore, now they focus on supporting, actively contacting operating investors, increasing dialogue to remove difficulties and connect with local authorities.

“The four Japanese investors have called on their two compatriots to pour capital into Vinh Long over the past time. This is a much more effective policy than going abroad,” Tin said.

Jetro’s Nobuyuki Matsumoto also agreed. “Businesses will ask each other. They say well, potential investors will come. If they say they still challenge, compatriots falter,” he said.