Global “eagles” like Boeing and Apple are focusing their attention and resources on building strategic partnerships in the Vietnamese market. Despite the global economic downturn affecting Foreign Direct Investment (FDI) attraction, Vietnam has still seen a good growth in this area. In the first five months of the year, newly registered FDI increased by nearly 28% compared to the same period last year.
During these months, Vietnam welcomed many global business delegations exploring investment opportunities, including a group of 50 American companies.
Boeing, a major player, inaugurated its representative office in Hanoi in early May. Later that month, on the sidelines of the APEC Trade Ministers’ Meeting and the Indo-Pacific Economic Framework (IPEF) in the US, Steve Biegun, Boeing’s Senior Vice President, announced the company’s plans to invest in developing the aviation parts and equipment supply chain in Vietnam.
Also in May, Apple – another global corporation that was part of the American business delegation visiting Vietnam earlier in the year – opened its first online store in Vietnam, offering services and personalization similar to Apple Stores worldwide. This move by Apple is seen as a positive assessment of the Vietnamese market and an effort to increase the brand’s presence in the country.
Previously, Vietnam had been a destination for Apple’s suppliers. From 2016 to 2022, the number of Apple supplier manufacturing facilities in Vietnam increased from 18 to 27, ranking seventh globally and second in Southeast Asia after Thailand (28 facilities). Vietnam is considered one of Apple’s two attractive investment destinations.
The attention and presence of investment projects from global corporations and businesses, including from the US, Japan, and South Korea, show that Vietnam is a destination for high-quality foreign direct investment projects and global supply chains. This aligns with Vietnam’s new strategy in attracting foreign investments.
Despite the positive news in attracting foreign investment, experts also note that Vietnam needs to continue addressing internal issues to ensure the spread and improvement of FDI quality. According to Dr. Nguyen Mai, Chairman of the Association of Foreign Invested Enterprises in Vietnam, there are two main challenges that Vietnam needs to address.
First, Vietnam needs to thoroughly understand the factors hindering investors, grasp the weaknesses of the investment environment, and make decisive improvements. This includes addressing legal and policy issues and the execution of such policies. Moreover, Vietnam’s administrative system, despite efforts towards digital government and e-government, remains cumbersome and bureaucratic.
Second, the quality of human resources needs to be improved to best support foreign enterprises.
Additionally, the global business and investment environment is changing significantly due to complex geopolitical factors, the COVID-19 pandemic, climate change, and emerging issues like global minimum tax policies. These factors are driving a rapid and robust shift in global FDI flows, leading to changes in investment decisions.
Vietnam needs to monitor policy changes and foreign strategies, particularly those of multinational corporations investing in Vietnam, to adjust its investment attraction measures to retain current investors and attract new ones.
Source: diendandoanhnghiep (Vietnamese business forum)