Vietnam Prepares to Welcome Fourth FDI Boom
Impressive FDI attraction
In 2023, despite the difficult economic context, Vietnam achieved relatively impressive FDI attraction.
Specifically, the total registered investment capital reached a record high of US$36.6 billion, up 32.1 percent from 2022. Meanwhile, FDI disbursement was also impressive, setting a new record of US$23.18 billion, up 3.5 percent over 2022.
Investment projects had better quality. The majority of new projects were in the processing and manufacturing sector, accounting for 64.2 percent. Many large-scale high-tech projects registered in electronics, semiconductor production, supporting industries, and advanced technological applications.
Minister Nguyen assessed that the sharp surge in FDI capital into Vietnam in 2023 came as a result of economic diplomacy activities by the Party and Government leaders, creating a favorable premise for fostering cooperation activities in 2024.
Building on the achievements gained in 2023, Vietnam has great opportunities in attracting investment as the country had experienced after joining the World Trade Organization (WTO). But the difference is that at this time, Vietnam has many opportunities to attract high-quality capital into new industries.
Vietnam is regarded as an attractive and safe destination as evidenced by the ongoing wave of large investment projects into technology, electronics, and other fields in Vietnam.
Attractive investment destination
In 2024, in the context of the global FDI slowdown, Vietnam is trying to implement effective solutions to attract high-quality FDI flows, including preparing conditions to lure investment projects in the semiconductor supply chain.
As the semiconductor value chain is gradually shifting to Southeast Asian countries, Vietnam has all the necessary conditions and factors to develop the semiconductor industry such as a stable political system and a favorable geographical location, attractive investment incentives, abundant technical and technological human resources, and increasingly developing digital infrastructure.
The Vietnamese government is highly determined to pursue and develop the semiconductor industry and more and more large corporations in this industry have come to the country.
Especially, the U.S. President’s commitment and support for Vietnam to join global high-tech value chains and chip and semiconductor industries are expected to open up great opportunities for Vietnam to enter global high-value production networks.
Vietnam has made the right, important, and decisive policies to increase investment funds for this field. The country is building a National strategy for the semiconductor industry and a Human resource development project for the semiconductor industry, with the goal of training and developing 50,000 workers for the industry by 2030.
Recently, the National Assembly issued a resolution that permits the Government to craft a decree and establish an investment support fund for the high-tech industry, including the semiconductor industry, expected to be issued by mid-2024.
The Government approved National Power Development Plan VIII and established the State Steering Committee for key energy projects in a bid to provide stable and sustainable electricity for investment projects, especially high-tech and semiconductor investment projects, speed up site clearance, prepare enough clean sites in industrial parks, economic zones, and high-tech parks as well as accelerating the progress of important transportation projects connecting to seaports and airports to enhance convenience for and competitiveness of semiconductor projects.
To implement these plans, the Ministry of Planning and Investment, through the National Innovation Center (NIC), signed a cooperation agreement with the two largest U.S. chip designers, Sypnosyps and Cadence, to establish research centers and semiconductor circuit design incubators.
The Vietnamese government has been making efforts to prepare the best conditions to welcome semiconductor investors.
