Connect with us

Project

FDI fuels Vietnam’s momentum to reach double-digit economic growth

Published

2 months ago

on

According to the General Statistics Office (GSO), Vietnam secured 38.23 billion USD in FDI last year, positioning itself among the top 15 developing countries for FDI inflows. Notably, the disbursement of FDI capital hit a record high of 25.35 billion USD, up 9.4 per cent from the previous year. The influx has contributed significantly to Vietnam’s position as a regional leader in economic growth.

FDI fuels Vietnam’s momentum to reach double-digit economic growth
Yarn production at the Logitex Co. Ltd in the Vu Ninh Industrial Cluster, Thai Binh province (Photo: VNA)

Hanoi – Vietnam’s impressive economic growth in 2024 was fueled by contributions from various sectors, with foreign direct investment (FDI) playing a pivotal role. As the country aims to achieve a growth rate of at least 8 per cent in 2025 and double-digit growth in subsequent years, the contributions from the FDI sector need to be amplified.

Vietnam in top 15 destinations for FDI

According to the General Statistics Office (GSO), Vietnam secured 38.23 billion USD in FDI last year, positioning itself among the top 15 developing countries for FDI inflows. Notably, the disbursement of FDI capital hit a record high of 25.35 billion USD, up 9.4 per cent from the previous year. The influx has contributed significantly to Vietnam’s position as a regional leader in economic growth.

Deputy Prime Minister Nguyen Chi Dung said the FDI sector has left a significant milestone in bolstering Vietnam’s collaboration with global tech giants such as NVIDIA in R&D activities, technology transfer, and high-quality human resources development to capitalise on semiconductor and AI’s potential, helping deliver on the country’s targets in the new era.

FDI has shared the investment burden in a context where state budget resources remain limited and spread across various priorities. Besides generating millions of jobs, the sector has boosted exports, expanded international economic relations, and enhanced Vietnam’s competitiveness in global economic integration. It currently accounts for over 70 per cent of the country’s total export turnover.

The sector has actually emerged as one of the main drivers of Vietnam’s economic growth, with its influence extending deeply into the country’s socio-economic landscape. Against the backdrop, it is necessary to identify strengths and weaknesses to enhance the sector’s effectiveness and contributions.

With a view to realising the target of luring some 150-200 billion USD in FDI for 2021-2025, and 200-300 billion USD for 2026-2030, measures need to be taken to settle several existing issues within the FDI sector, including cases of non-compliance with Vietnamese laws, violations of environmental protection regulations, labour and wage infractions, and tax evasion.

Besides, transfer pricing has become increasingly sophisticated, raising questions about why some FDI enterprises report losses while simultaneously proposing expansion of their investments in Vietnam. Although regulatory authorities have identified and penalised many companies, combating transfer pricing remains challenging.

Improvements for enhanced attractiveness

Experts proposed several ways to enhance FDI’s impact on Vietnam’s economic growth, laying stress on the significance of maintaining preferential policies to lure the capital and making them more transparent, attractive, and competitive. They held that FDI policies should be selective, with priority given to quality, efficiency, technology, and environmental protection. Furthermore, administrative reforms should enhance support for the FDI sector while management should be tightened with proactive post-inspection measures, creating conditions for investors to shorten preparation and implementation time of projects.

They also suggested that Vietnam should prioritise projects featuring advanced and clean technologies, modern governance, high added value, spillover effects, and global connectivity between production and supply chains. Additionally, the country should continue negotiating and signing free trade agreements to create a favourable environment for foreign trade, thereby attracting FDI to launch production for export in Vietnam.

Vietnam is gradually shifting towards enhancing FDI quality by focusing on selective, proactive attraction of high-tech, environmentally friendly projects in spearhead sectors. Notably, in recent years, Vietnam has identified semiconductors and AI as two strategic industries to drive national development.

Deputy Director of the National Innovation Centre (NIC) Vo Xuan Hoai said that Vietnam has proactively developed a domestic semiconductor ecosystem and created a favourable legal corridor to welcome global enterprises.

He said Vietnam has made impressive progress in semiconductor cooperation with the US, the Republic of Korea (RoK), Japan, Taiwan (China), and Europe. Last year, the NIC announced its partnership with NVIDIA, a major chip and AI corporation, to set up an AI R&D Centre and an AI Data Centre.

The Vietnamese Government is planning to train some 50,000 semiconductor engineers by 2030 to meet the increasing demand of this strategic sector.

To enhance the capacity for genuine and effective evaluation and control of the FDI sector’s contribution to the economy, the Prime Minister recently issued a decision establishing criteria for evaluating the effectiveness of foreign investment in Vietnam. Notable among these are 29 economic indicators measuring important factors such as budget contributions, profit before tax, profit margins, and linkages between FDI enterprises and domestic companies.

In another move, the Government issued a decree on the establishment, management, and use of the Investment Support Fund, affirming its commitment to to promoting high-tech enterprises, particularly in semiconductors and AI. This initiative not only serves as an important driver for enhancing competitiveness but also helps Vietnam integrate more deeply into the international market.

Director General of the RoK-based Hana Micron, Inc. Lee Dong-Chul said that Vietnam has become an attractive destination for high-tech enterprises on the back of the Government’s strong support, sound infrastructure, and high-quality human resources at rational costs.

Related Topics:

Investing

Billionaire Trần Bá Dương’s VND 2,000 Billion, 200-Hectare Industrial Park in Thái Bình Could Begin Operations This Year

Published

3 weeks ago

on

March 31, 2025

By

The Thaco – Thái Bình Industrial Park, covering more than 194 hectares with an investment of over VND 2,100 billion, is expected to become operational within this year, according to the development plan.

Recently, provincial leaders of Thái Bình conducted an on-site inspection of land clearance efforts and infrastructure construction progress at the Thaco – Thái Bình Industrial Park located in Quỳnh Phụ District.

To date, Quỳnh Phụ District has completed compensation and land clearance for nearly 192 hectares of agricultural land, involving the land recovery of 1,067 households to hand over to the investor for project implementation.

Currently, the district is focusing on clearing the remaining land, involving 94 households in Lương Cầu Hamlet, An Cầu Commune. At the same time, it is coordinating with the electricity sector to relocate a 220kV high-voltage power line.

On the investor’s side, groundwork construction is underway, including roadbeds, internal roads, stormwater and wastewater drainage systems, and communication infrastructure within the industrial park.

The Thaco – Thái Bình Industrial Park is a specialized high-tech agricultural industrial park proposed by THACO Group (chaired by billionaire Trần Bá Dương) since 2017, originally planned to cover 250 hectares. By July 2017, the provincial authorities agreed to incorporate the project into Thái Bình’s industrial development master plan.

In August 2020, THACO officially broke ground on the industrial park’s infrastructure. A year later, in August 2021, the project’s investment certificate was revised, confirming a total investment of over VND 2,100 billion and a land area of more than 194 hectares. The project is being developed across An Thái, An Ninh, and An Cầu communes in Quỳnh Phụ District.

According to the roadmap, the investor is determined to complete and officially launch the project in 2025.

The Thaco – Thái Bình Industrial Park is designed as a dedicated high-tech agricultural zone, featuring various functional subdivisions including an administration center, agro-food processing zone, high-tech agricultural training center, experimental farms, agricultural materials production area, and a cargo transport port.

This project is considered one of the key developments in Thái Bình Province, playing a crucial role in the region’s socio-economic growth strategy.

Continue Reading

Project

Carbon labels: a gateway to high-value global markets

Published

4 weeks ago

on

March 27, 2025

By

In an era where sustainability is not just a choice but a requirement, carbon labelling is emerging as a crucial factor for exporters.

Carbon labels: a gateway to high-value global markets
Vu Trung Kien, director Climate Change Resilience Centre

Countries like the US and the European Union are implementing stringent carbon regulations, such as the EU’s Carbon Border Adjustment Mechanism and increasing scrutiny on supply chain emissions.

Vietnamese businesses that fail to adopt carbon labelling risk losing access to lucrative markets. However, those that proactively integrate carbon footprint transparency into their products can gain a competitive advantage, enhance brand reputation, and secure long-term profitability.

Across the world, forward-thinking countries have embraced carbon labelling as a strategic tool for trade success. These efforts have not only helped businesses comply with regulations but have also opened doors to new investment and consumer markets.

Japan has implemented a government-backed carbon labelling programme that allows companies to display detailed carbon footprint information on their products. This has strengthened consumer trust and made Japanese goods more attractive in environmentally conscious markets such as the EU and North America.

The South Korean government incentivises businesses to adopt carbon labelling through tax benefits and green export support schemes. Companies that participate gain access to new trading partners, particularly in Europe, where sustainable supply chains are becoming the norm. Thailand, a key competitor to Vietnam, has integrated carbon labelling across industries such as food processing, textiles, and electronics. Thai exporters, particularly in agriculture, now benefit from preferential treatment in European supermarkets and trade agreements.

These case studies highlight an important lesson: carbon labelling is not just about compliance – it is a business strategy that enhances market access, builds consumer confidence, and future-proofs exports.

For businesses in Vietnam, waiting until carbon labelling becomes a legal requirement would be a mistake. Many international corporations have already set ambitious sustainability targets, requiring suppliers to provide verifiable carbon footprint data. Voluntary carbon labelling can position Vietnamese enterprises as reliable, future-ready partners.

It works by companies conducting a life cycle assessment to measure emissions from production to disposal. Products are labelled with a carbon footprint score, helping consumers and businesses make informed choices. Labels are often verified by third-party certifiers to ensure credibility and compliance with global standards.

The benefits include a boost for green supply chains. Companies like Nestlé and Unilever prioritise suppliers that provide carbon footprint transparency. Vietnamese food and beverage exporters can gain an edge by aligning with such demands.

Businesses with carbon-reduction strategies attract funding from international banks and investors that focus on increasing environmental, social, and governance (ESG) investment.

It also leads to improved consumer trust and higher sales. Studies indicate that climate-conscious consumers prefer labelled products. In markets like the EU, organic rice, seafood, and textiles from carbon-labelled brands command higher prices.

For Vietnamese companies looking to integrate carbon labelling into their strategy, a step-by-step approach can make the transition smooth and effective.

Pilot carbon labelling programmes in key sectors are critical, with a focus on industries where carbon labelling is already gaining momentum, such as textiles, seafood, agriculture, and furniture.

The process must start with one or two high-export products and conduct a carbon footprint analysis to understand emissions sources. Industry associations must also work with international partners to ensure the label aligns with EU and US standards.

Collaboration with certification bodies is also key, and partnering with recognised organisations such as the Carbon Trust (UK), TÜV Rheinland (Germany), or SGS (Switzerland) for certification is advised, as is engaging with Vietnamese regulatory bodies to advocate for government incentives similar to South Korea’s model.

Another vital part of the process is to leverage green financing and government incentives to access ESG-linked loans and grants that support supply chain improvements. Alongside this, there needs to be a move to propose carbon labelling incentive programmes through the Vietnam Chamber of Commerce and Industry or the Ministry of Industry and Trade.

The future of Vietnam’s export competitiveness is green. The world is moving towards sustainable trade, and carbon-labelling is no longer optional for businesses that want to thrive in international markets. By learning from successful global initiatives, Vietnamese companies can turn carbon transparency into an economic advantage rather than a compliance burden.

The time to act is now. Companies that lead in carbon labelling will not only future-proof their businesses but also shape Vietnam’s reputation as a responsible trade leader.

Continue Reading

Project

Industrial parks in Binh Duong increase FDI attraction by 232%

Published

4 weeks ago

on

March 27, 2025

By

In the first quarter of 2025, an additional 588 million USD in foreign direct investment (FDI) poured into Binh Duong Province’s industrial parks, marking a 232% increase compared to the same period in 2024 and reaching 53.43% of the 2025 annual plan, as reported by the provincial Management Board of Industrial Parks on March 26.

Of the 588 million in FDI USD invested in industrial parks during the first quarter, there were 25 new investment projects with a total registered capital of more than 60.2 million USD and 26 projects with additional capital adjustments, contributing nearly 528 million USD in increased capital.

With this positive investment attraction in the first quarter, industrial parks in Binh Duong have so far attracted 3,252 active projects, including 2,561 FDI projects with total registered capital of 31.57 billion USD and 691 domestic investment projects with total registered capital of 93.664 trillion VND.

According to the Management Board of Industrial Parks in Binh Duong, 10 new projects have become operational in the first quarter. Currently, the province’s industrial parks have 2,706 active business and production projects, including 507 domestic projects and 2,199 FDI projects.

With effective operations, the estimated business and production targets for the first quarter of 2025 in the province’s industrial parks exceeded 11 billion USD, increasing by 7.72% compared to the same period last year and reaching 31.49% of the annual plan. Export turnover surpassed 6.34 billion USD, up 9.22% year on year, achieving 25.36% of the annual plan. Taxes and budget contributions reached nearly 175.4 million USD, increasing by 10.23% year on year and fulfilling 25% of the annual target.

Binh Duong currently has 29 industrial parks with a total planned area of 12,746 hectares. Of which, 28 industrial parks are already operational, covering a total of 12,046 hectares.

According to the Binh Duong Provincial Master Plan for 2021-2030, with a vision to 2050, which was approved by the prime minister, the province is planned to develop 48 to 50 industrial parks with a total planned area of 25,000 hectares.

Continue Reading

Trending