Foreign investors increase investment, putting trust in growth prospects in Viet Nam
VGP - Growth prospects and a friendly investment environment have made Viet Nam an attractive magnet to foreign investors.
It was evidenced by the amount of US$15.41 billion that foreign investors pledged to pour into Viet Nam in the first seven months of 2022.
The figure is equivalent to 92.9 percent of that in the same period last year as investment flows have yet completely recovered due to the COVID-19 pandemic and unexpected changes in the global market, said Director General of Foreign Investment Agency (FIA), under the Ministry of Planning and Investment.
Especially, the amount of FDI disbursement valued at US$ 11.57 billion, representing a year-on-year increase of ten percent.
PROSPECTS FOR POSITIVE GROWTH
Comments on Vietnamese positive growth prospects released by international financial institutions continue to strengthen investors’ confidence.
The Asian Development Bank (ADB) sustained its prediction for Viet Nam's economic expansion this year at 6.5 percent, while revising down its forecast for developing Asia and the Pacific to 4.6 percent from 5.2% in April.
The lender was convinced that thanks to abundant food supply and prudent and flexible management policies, Viet Nam's inflation will remain at 3.8 percent for 2022 and 4 percent for 2023.
HSBC revised up in early July its Viet Nam GDP prediction for 2022 from 6.6 percent to 6.9 percent, while IMF put its estimation at 6 percent.
The WB and the IMF expect Viet Nam’s 2022 inflation to be contained at a maximum of 4 percent, which is the State Bank of Vietnam's target.
POTENTIAL MARKET, FRIENDLY ENVIRONMENT
The Vietnamese market remains very potential, said Onaga Masaru, Chairman of Onaga Company when talking about reasons for pouring capital into Viet Nam. Every year, Viet Nam imports about US$100 billion of components for cars, motorcycles and machines of all kinds.
The advantages of strategic location, human resources as well as gradually completed socio-economic infrastructure have become advantages of Viet Nam in general as well as of the locality in particular in attracting long-term FDI inflows.
Gianluca Fiume - Executive Vice President of Piaggio Asia Pacific cum General Director of Piaggio Viet Nam was quoted as saying that Piaggio Viet Nam has achieved results beyond expectations despite negative impacts caused by the pandemic.
Source: VGPOriginal link