The recovery of FDI inflows has demonstrated effective macroeconomic management policies, as well as the peace of mind of foreign investors when continuing to expand investment and production in Vietnam. .

Better than expected recovery

In the context of the market raising concerns about the ability of foreign investors to move orders, even move investment out of Vietnam because of the prolonged social distancing situation, causing supply chain disruptions, On August 31, 2021 in Hai Phong, LG Display Vietnam Co., Ltd. was awarded a Certificate of Registration to adjust investment capital by 1.4 billion USD for a project complex in Trang Due Industrial Park. . This is LG’s fourth capital increase in Hai Phong and the second capital increase in 2021, bringing the size of LG Group’s investment capital in Hai Phong to $4.65 billion. LG Display Company expects with this capital increase, it will help increase the output of plastic OLED screens for mobile products from 9.6 to 10 million products/month to 13-14 million products/month; increase export revenue by about 6.5 billion USD/year; increase the budget payment by about 25 million USD/year and create 10,000 more jobs. Mr. Park Jae Hong, Deputy General Director of LG Display Company shared: Enterprises appreciate the facilitation and support of Hai Phong city in investors’ activities. With great determination in reforming administrative procedures and improving the business investment environment, it took only five days for LG Display to receive the Investment Certificate for the first capital increase and three days for the second adjustment. two. Besides, the fact that Hai Phong spends a large amount of Covid-19 vaccine for workers in industrial parks is also a basis for businesses like LG Display to invest and expand production with confidence. Enterprises appreciate the facilitation and support of Hai Phong city in investors’ activities. With great determination in reforming administrative procedures and improving the business investment environment, it took only five days for LG Display to receive the Investment Certificate for the first capital increase and three days for the second adjustment. two. Besides, the fact that Hai Phong spends a large amount of Covid-19 vaccine for workers in industrial parks is also a basis for businesses like LG Display to invest and expand production with confidence. Enterprises appreciate the facilitation and support of Hai Phong city in investors’ activities. With great determination in reforming administrative procedures and improving the business investment environment, it took only five days for LG Display to receive the Investment Certificate for the first capital increase and three days for the second adjustment. two. Besides, the fact that Hai Phong spends a large amount of Covid-19 vaccine for workers in industrial parks is also a basis for businesses like LG Display to invest and expand production with confidence.

Hai Phong’s efforts along with the trust of foreign investors have helped this locality for the first time rise to the top position in the list of attracting a lot of foreign capital, making an important contribution to the general recovery of the FDI inflows. FDI into Vietnam in a tumultuous year. Similarly, many other localities are still determined to keep the goal of attracting large FDI projects in the context of having to devote all prior resources to focus on prevention and control of the Covid-19 epidemic. It is Vinh Phuc attracting the project of Kraft Vina Paper Factory with a capacity of 800,000 tons/year from Japan, total investment capital of 611.4 million USD, granted an Investment Certificate in July 2021, specializing in manufacturing. kraft paper, lining paper and packaging paper in Vinh Phuc province;

Producing super-precise mechanical components at Fujikin Co., Ltd., VSIP Bac Ninh Industrial Park, Bac Ninh province. 

Still waiting for the "eagle"

At the time of "closing" the FDI attraction data of 2021, it is also the time when Vietnam receives good news when Lego Group (Denmark) officially signed a memorandum of understanding with Joint Venture Company Limited. Vietnam-Singapore Industry Association (VSIP) to build a children’s toy factory in Binh Duong. This is Lego’s sixth factory globally and the second in Asia, with a total investment of more than one billion USD, expected to be deployed in the second half of 2022. In particular, this is a neutral factory. Lego’s first carbon when using on-site energy from self-invested solar cells and green energy from nearby energy supply projects. Lego’s investment in building a factory worth one billion USD has brought Denmark to the top and become one of 10 countries,

In 2021, there have started to be changes from quantity to quality of foreign capital flows. The number of small-scale projects under one million USD and under five million USD both decreased by more than 33% compared to the previous year, projects in the fields of technology, processing, manufacturing and energy increased. But in order to receive the "eagle", to welcome the green investment stream as expected, it takes more effort and determination. Data from the Foreign Investment Agency shows that in 2021, Singapore topping the list of countries and territories investing in Vietnam is Singapore with a registered capital of 10.7 billion USD, accounting for 34.4% of total investment capital. . Followed by Korea ranked second with 5 billion USD, accounting for 15.9%; Japan ranked third with 3.9 billion USD, accounting for 12.5%. Although Korea ranked second in terms of investment capital, it is the leading partner in terms of new investment capital, additional capital and capital contribution and share purchase activities. So, in terms of the number of projects,

Professor, Doctor of Science Nguyen Mai, Chairman of the Association of Foreign Investment Enterprises in Vietnam, assessed: Recent forecasts show that global FDI in 2022 can recover to pre-pandemic levels, thanks World epidemics are well controlled, many countries have issued new mechanisms and policies to encourage investment. Prospects in 2022, Vietnam can attract about 40 billion USD, reaching the target in quantity such as Resolution 50-NQ/TW of the Politburo on orientations to perfect institutions and policies, improve quality, foreign investment cooperation efficiency until 2030, but in terms of quality, there is still much work to be done. First of all, it is necessary to comprehensively renovate the stages from investment promotion, taking conferences and seminars as the main thing to approaching potential investors, especially large economic groups. “For multinational corporations, the time factor is very important. Although we have eliminated thousands of business conditions, the procedure for granting an Investment Certificate still takes six months to a year, followed by a series of other procedures before the project can be implemented. The investor’s requirement is that the licensing is calculated by weeks, even by days, the next procedures must also be quick, if not met, we will lose the opportunity," said Professor Nguyen Mai.