Vietnam’s Ministry of Planning and Investment and the International Finance Corporation (IFC), a sister organization of the World Bank recently released a report with recommendations focusing on FDI attraction strategy for 2020-2030, which is a major component of Vietnam’s 2021-2030 socio-economic development strategy.
FDI in Vietnam
FDI in Vietnam has grown by a factor of 10 over the past decade. During that period, low labor costs and government incentives were the major driving factors for foreign investors and still continue to be so.
As of June 2018, total registered FDI in Vietnam reached US$331.2 billion, while disbursement totaled US$180.7 billion. Manufacturing and processing accounted for 57.1 percent of the foreign investment at US$189 billion, followed by real estate at US$56.2 billion, accounting for 17 percent of the total.
The FDI sector in Vietnam currently accounts for around 22 percent of the GDP and 70 percent of the exports. The sector has been responsible for almost 3.7 million direct and 5-6 million indirect jobs in Vietnam.
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