VIET NAM’S STABILITY, OPENNESS KEY TO NEW FDI COMMITMENTS

Cumulative foreign direct investment (FDI) commitment in Viet Nam increased despite global uncertainties, thanks to continued confidence in Viet Nam’s stability and openness, noted the World Bank (WB).

In its Viet Nam Macro Monitoring for October 2023 report, the WB said, FDI commitment in Viet Nam for the first 10 months of 2023 reached US$25.7 billion, 14.7 percent higher than the same period last year.

Meanwhile, the cumulative FDI disbursement in Viet Nam was US$18 billion, 3.2 percent higher than a year ago. Manufacturing continued to be the magnet for FDI inflows into the country.

Remarkably, the industrial production index grew by 2.89 percent in October, due to the continued recovery of manufacturing exports.

According to the WB, exports and imports of goods continued to recover, increasing by 1.6 percent and 1.05 percent, respectively, against the previous month, as demand from trade partners continued to gradually recover.

Public investment disbursement increased by 35 percent year-on-year for the 10-month period, helping the government achieve 55 percent of the annual planned budget (compared with 46.5 percent during the same period of 2022).

The bank suggested authorities consider extending the economic support program to 2024 to allow investment projects to be fully implemented. Preparing higher quality project–including through better feasibility studies and the reform of public investment procedures would help to speed up implementation, the WB highlighted.

A strategic and well-prepared investment pipeline with a focus on green, resilient and regional infrastructure will help bolster sustainable economic development, added the bank.

Source: VCCI