Vietnam has demonstrated impressive growth in foreign investment in 2024, attracting over USD 27.26 billion as of October, marking a 1.9% increase from the previous year. The processing and manufacturing sector received the largest share, with USD 17.1 billion, followed by real estate at USD 5.32 billion. Singapore emerged as the top investor, contributing USD 7.79 billion, while Bac Ninh province became the leading destination for these investments, securing USD 4.7 billion. To sustain this momentum, Vietnam has enacted legislative reforms aimed at streamlining the investment process and reducing bureaucratic hurdles, which are expected to unlock further capital flows and accelerate infrastructure development.
Vietnam’s commitment to international trade and investment is evident in its participation in major trade agreements that enhance market access for Vietnamese exporters, particularly in machinery, textiles, and agriculture. However, challenges persist, including foreign ownership limits in strategic sectors like oil and gas and stringent licensing requirements in healthcare and IT. Despite these barriers, Vietnam continues to attract foreign investment through various incentives such as import duty exemptions and support for research and development. Notable investments from global companies like Samsung (invested USD 1.8 billion in a new OLED manufacturing facility in Bac Ninh) and Foxconn (invested USD 551 million in projects in the northeastern province of Quang Ninh) point towards Vietnam’s growing reputation as a manufacturing hub.
In the coming years, Vietnam aims to solidify its position as a significant player in the global economy by focusing on high-tech industries, particularly semiconductors, with US-based companies pledging USD 8 billion in investments for 2024. The government is also adapting its investment strategy to align with global tax standards while maintaining competitiveness. Furthermore, Vietnam’s mergers and acquisitions market is gaining traction, particularly in industrial real estate and renewable energy sectors. With ongoing reforms and a proactive approach to creating a business-friendly environment, Vietnam is poised for sustained investment growth and economic stability in the coming years.
(Source: Vietnam Investment Review)