Positive FDI inflows bolster domestic production capacity
The confidence of both domestic and foreign direct investment (FDI) enterprises has been significantly strengthened by the positive signs of industrial production growth in the early months of 2024.
Deputy Minister of Industry and Trade Phan Thi Thang speaks at the meeting. (Photo: VietnamPlus)
Hanoi (VNA) -⛎ The confidence of both domestic and foreign direct investment (FDI) enterprises has been significantly strengthened by the positive signs of industrial production growth in the early months of 2024.
At the regular government press conference on August 5, Deputy Minister of Industry and Trade Phan Thi Thang provided an update on the recovery and growth of the industrial sector. Notably, the positive results in attracting and disbursing FDI have contributed to enhancing domestic production capacity.
The Deputy Minister highlighted several key positive indicators in the industrial sector in the first seven months. The manufacturing Purchasing Managers' Index (PMI) saw a strong increase, and the sector’s overall value-added rose significantly compared to the same period last year. In particular, the consumption index for the processing and manufacturing industry grew, leading to a reduction in inventory levels compared to the previous year.
The representative of the Ministry of Industry and Trade noted that the industrial growth seen in the seven months, particularly regarding the processing and manufacturing sectors, reflects a very positive picture of domestic production. Industrial production has been recovering strongly from 2023, and this growth momentum is expected to continue. The processing and manufacturing industry has resumed its role as a growth driver, with broad-based industrial growth across most regions, especially in key industrial development areas. Domestic enterprises operating in the sector have shown a strong recovery and are well-positioned to seize new market opportunities in months to come.
Enterprises ramp up production to seize market opportunities. (Photo: VietnamPlus)
"The confidence of domestic and foreign enterprises has been strongly reinforced by the positive growth in industrial production during the early months of this year," Thang stressed.
She attributed these positive results to the effective government support measures, decisive directives from the Prime Minister on public investment disbursement, and the implementation of key industrial projects. The government, along with various ministries, sectors, and localities, has closely collaborated with associations and enterprises to effectively leverage opportunities provided by free trade agreements (FTAs) that Vietnam has signed. This has come in the context of a recovering global market and positive growth recorded in export orders for Vietnam's key export sectors – such as garment and textiles, leather and footwear, electronics, and food processing.
The Deputy Minister went on to underscore the success of Vietnam's economic diplomacy, particularly with major trade partners like the US and China, which has helped strengthen investor and business confidence.
However, she also pointed out the challenges ahead. Despite improvements, the internal capacity of domestic industries remains weak. Long-standing bottlenecks in the industrial sector have yet to be resolved effectively.
A stage in the production of shoes for export. (Photo: VietnamPlus)
Additionally, the domestic and international context poses challenges for domestic production in the coming months and years. The global and regional situation continues to evolve rapidly, with increasing geopolitical tensions and major power competition. Slow recovery with key trade partners, potential disruptions in global supply and production chains, and other risks could also present significant challenges.
The ministry, according to the official, encourages increasing the procurement of domestically produced goods, minimizing the use of imported products and materials that can be sourced locally, and actively seeking new markets for the country's key export sectors./.
As of July 20, 2024, the combined total of newly registered capital, adjusted capital, and capital contributions and share purchases by foreign investors surpassed 18 billion USD, up 10.9 percent compared to the same period last year.
Having experienced three major waves of FDI, Vietnam now stands poised to usher in a fourth wave, marked by a strategic shift in investment attraction directions and investment quality.
The capital city of Hanoi attracted 124.9 million USD in foreign direct investment (FDI) in July, bringing the total in the first seven months to 1.3 billion USD, 65% higher than the same period last year.
China’s Laoling city, in coordination with VINEXAD, hosted a series of events in Ho Chi Minh City from August 7-9 to seek trade and economic cooperation with Vietnam.
Vietnamese Ambassador to Cambodia Nguyen Minh Vu led a delegation to Mondulkiri, Ratanakiri, and Kratie provinces from August 5-8, aiming to deepen economic ties and support Vietnamese businesses operating in Cambodia’s northeastern region.
Party General Secretary To Lam’s upcoming state visit to the Republic of Korea (RoK) is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.
In the context of the growing global digital economy, digital transformation and the promotion of e-commerce are key drivers helping Vietnam boost integration, enhance competitiveness, and expand export markets, according to the Vietnam E-commerce and Digital Economy Agency
Tilapia is considered highly competitive in export markets thanks to its affordability, ease of processing, and appeal across both high-end and mass-market segments.
In the first seven months of the year, Phu Tho attracted an impressive 651.7 million USD in foreign direct investment, including 35 newly licensed projects totaling 119 million USD in registered capital and 45 existing projects with an additional capital of 533 million USD.
Under the agreements, VinEnergo will invest in, install, and operate 43 MWp of rooftop solar power capacity and 45 MWh of BESS capacity across the three plants.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Experts agree that a combination of technology, enforcement, education and cross-border cooperation is essential to protect copyrighted content in Vietnam’s growing digital ecosystem.
Poland is Vietnam’s largest export market in Central and Eastern Europe, with key staples including seafood, textiles, footwear, coffee, and cashew nuts.
Cashless payments are growing at an impressive rate, averaging 30–40% annually. Vietnam’s per capita cashless transaction volume now trails only China, with total value of 295.2 quadrillion VND (11.26 trillion USD), or 26 times of its GDP.
A draft resolution on piloting a digital asset and cryptocurrency market is being developed, aiming to create a broad-enough regulatory sandbox that enables investor participation and provides practical grounds for policy refinement in areas such as risk management and anti-money laundering.
