34 Years Of Attracting FDI In Vietnam: The Remarkable Milestones

Summary

In 2022, Vietnam celebrates 34 years since its first wave of foreign direct investment (FDI), becoming a global FDI hotspot. Key milestones include the 1987 Foreign Investment Law, the establishment of the State Committee for Cooperation and Investment in 1989, and joining the WTO in 2007. Despite the 2021 pandemic, Vietnam attracted significant FDI, ranking 19th globally in 2020. The government's supportive policies and the country's strategic location within the newly-signed RCEP make Vietnam an attractive destination for investors, with the potential for sustainable and inclusive recovery post-pandemic.

Takeaways

• 📅 Vietnam's journey of attracting FDI began in 1987 with the approval of the Foreign Investment Law.
• 🏛️ The Ministry of Foreign Economic Affairs was tasked with evaluating and licensing FDI projects in 1988.
• 🌟 In 2007, Vietnam joined the World Trade Organization, marking a significant step in its economic integration.
• 📈 Vietnam saw a threefold increase in FDI in 2008, welcoming up to 64 billion USD.
• 🏆 In 2020, Vietnam was ranked 19th globally in attracting the most FDI.
• 🛡️ Despite the Covid-19 pandemic, Vietnam's government issued resolutions to promote economic development and support FDI.
• 💹 In the first five months of 2022, Vietnam received 11.7 billion USD in FDI, indicating continued investor interest.
• 🔁 The Law on Investment established equality between domestic and FDI enterprises, fostering a level playing field.
• 📉 FDI in Vietnam fell by 2% in 2020, but this decline was significantly lower than in other countries.
• 🌐 The Regional Comprehensive Economic Partnership (RCEP) has positioned Vietnam as part of one of the largest FDI recipient groups.
• 🌱 Vietnam shows positive signs of recovery post-pandemic, making it an attractive market for new business development.

Q & A

What significant event marked Vietnam's opening to foreign direct investment in 1987?

The approval of the Foreign Investment Law by the National Assembly at the end of 1987, which formalized foreign capital flows into Vietnam.

Which government body was tasked with evaluating and licensing FDI projects in 1988?

The Ministry of Foreign Economic Affairs was tasked with evaluating and licensing FDI projects starting in 1988.

When did Vietnam join the World Trade Organization and what was its significance?

Vietnam joined the World Trade Organization (WTO) in 2007, marking a significant moment in its economic renovation journey and becoming the 150th member of the world's largest trade organization.

How much FDI did Vietnam attract in 2008, and how does it compare to the previous year?

In 2008, Vietnam attracted up to 64 billion USD in FDI, which was three times more than in 2007.

What was Vietnam's global ranking in terms of attracting FDI in 2020?

In 2020, Vietnam was ranked 19th in the world in terms of attracting the most FDI.

What measures did the Vietnamese Government take during the Covid-19 pandemic to promote economic development and support FDI businesses?

During the Covid-19 pandemic, the Vietnamese Government issued Resolutions 105/NQ-CP and 128/NQ-CP to promote economic development and help the FDI business community remain confident.

How much foreign direct investment did Vietnam receive in the first five months of 2022, and what were the types of investments involved?

In the first five months of 2022, Vietnam received a total of 11.7 billion USD in FDI, which included 4.1 billion USD in newly-licensed investment capital, 5.6 billion USD in adjusted capital, and 1.98 billion USD in share purchase capital.

What legal changes did Vietnam make to establish equality between domestic and FDI enterprises?

Vietnam combined the Laws on Domestic and Foreign Investment into the Law on Investment, which established equality between domestic and FDI enterprises.

How has FDI impacted Vietnam's economy and international standing?

FDI has helped Vietnam produce and export more, brought in more money for the Government, provided jobs, and improved its status, role, and position in the international community.

According to the World Investment Report 2021 by UNCTAD, what was Vietnam's global ranking in attracting FDI, and how did it change from 2019?

According to the World Investment Report 2021 by UNCTAD, Vietnam ranked 19th globally as an FDI host country in 2020, up five places compared to 2019.

How did the Covid-19 crisis affect global FDI flows, and how did Vietnam fare in comparison to other countries?

The Covid-19 crisis caused a 35 per cent drop in global FDI flows to $1 trillion in 2020. Vietnam's FDI fell by 2 per cent, which was much lower than the decline in other countries.