Ms. Nguyen Thi Mai Hanh, Director of the Department of National Accounts System (General Statistics Office)

Economic activities in the first two months of this year had many bright spots, including attracting foreign investment, madam?

It can be said that attracting foreign investment in the first two months of this year continues the miracle story that has been achieved since mid-2023. Last year, Vietnam attracted over 36.6 billion USD in foreign investment, an increase of over 32% compared to 2022. Of which, newly registered foreign direct investment (FDI) reached nearly 20.2 billion USD, an increase of almost unpredictable (up over 62%). Foreign investors also spent more than 8.5 billion USD to contribute capital and buy shares of enterprises in Vietnam, an increase of 65.7%. Not to mention, operating FDI projects adjusted to increase capital by nearly 7.9 billion USD.

It is also worth noting that in 2023, not only did it attract the largest amount of foreign investment capital since the Covid-19 pandemic, but it also attracted many "huge" FDI projects, such as the Thai Binh LNG Thermal Power Plant Project, with a total registered investment capital of 1.99 billion USD; Jinko Solar Hai Ha Photovoltaic Cell Technology Complex Project in Quang Ninh, with a total registered capital of 1.5 billion USD; Lite-On Factory Project, with a total registered investment capital of 690 million USD with the goal of manufacturing computers and computer peripherals in Quang Ninh; LG Innotek Factory Project in Hai Phong adjusted its capital to increase by 1 billion USD.

This miracle continued into this year, when in the first two months of the year, Vietnam attracted 4.29 billion USD, an increase of 38.6% over the same period in 2023. According to data from the Ministry of Planning and Investment, although in the first two months of this year, the whole country was off for the Lunar New Year - the longest holiday of the year, there were still 405 new FDI projects granted investment registration certificates, an increase of more than 55% over the same period, with a total registered capital of nearly 3.6 billion USD, more than double the same period. Another good news is that Vietnam continues to attract "eagles to nest", with 2 projects with large investment capital, totaling about 1.1 billion USD.

But madam, is attracting adjusted FDI capital still a "low note"?

Total registered adjusted FDI capital last year reached nearly 7.9 billion USD, down over 22% compared to 2022, but the rate of reduction of this capital source has gradually improved each month.

Specifically, in the 12 months of 2023, FDI capital was adjusted down by 22%, instead of decreasing by over 32% in the first 11 months of the year and decreasing by up to 39% in the first 10 months of 2023. Registered FDI capital decreased, but the number of projects increasing capital increased by 14%, showing investors' confidence in Vietnam's investment environment, so they continue to make decisions to expand existing projects.

Entering 2024, the positive trend continues, with 159 projects registering to adjust investment capital in the first two months of the year, up 19.5% over the same period, with the total additional registered capital still decreasing, but only down 17.4%, instead of down 23% in January 2024.

From the above data, what conclusion can you make?

Foreign investment in Vietnam in 2020 decreased by 25%; in 2021, it slightly recovered with an increase of 9.2%, but increased on the basis of a sharp decrease in the previous year, so it still decreased sharply compared to 2019. In 2022, foreign investment continued to decrease, with a decrease of 11% and still decreased in the first months of 2023. Foreign investment actually rebounded from the second quarter of 2023 and as a result, the whole year of 2023 increased by over 32% and the first two months of this year increased by 38.6%. This is a very important driving force to promote Vietnam's economic growth in 2024 and the following years in the context of many difficulties and challenges facing the world economy as well as the domestic economy.

The above results are due to the improved and attractive investment and business environment with many outstanding advantages. This is also an inevitable consequence when Vietnam upgrades its relations to Comprehensive Strategic Partnership with Japan and the United States in 2023.

With quite positive moves in attracting FDI capital, do you believe that foreign investors will still choose Vietnam as an attractive investment destination and tend to continue to increase investment in 2024 and the following years?

Vietnam has become a strategic partner with 18 countries, including 6 comprehensive strategic partners (the latest being South Korea, the United States and Japan); participating in 16 bilateral and multilateral free trade agreements (FTAs), including 2 new generation FTAs, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Vietnam - EU Free Trade Agreement (EVFTA), creating favorable conditions for foreign investors to expand investment in Vietnam.

Vietnam has created confidence among foreign investors with stable macroeconomic policies; open and safe investment environment; the Government, Prime Minister, ministries, branches and localities always accompany and support the business community to overcome difficulties, stabilize and develop production and business. The key traffic infrastructure of the North-South route, inter-regional and inter-provincial traffic has gradually improved; many fiscal and monetary policies to support businesses have been effectively implemented. These factors have positively impacted foreign investors in deciding to invest in new projects, as well as expand existing projects in Vietnam.

Vietnam continues to invest in developing infrastructure systems, especially power supply capacity and transport and logistics infrastructure; constantly improving the quality of training as well as vocational education to ensure the quality of labor resources supplied to the market in the future... That is a plus point in attracting FDI this year and the following years.

Specifically, what do foreign investors think about the investment and business environment in Vietnam?

According to the White Book 2024 published by the European Chamber of Commerce in Vietnam (EuroCham), Vietnam's business environment has improved significantly in recent times, and its global investment attractiveness remains strong. Over 63% of EU businesses surveyed ranked Vietnam in their top 10 FDI destinations. About 31% rated Vietnam as one of the top 3 investment targets, of which 16% considered Vietnam the best investment destination. Notably, more than half of EU businesses surveyed plan to increase foreign direct investment in Vietnam by the end of this year.

In addition, recently, Fitch Ratings - an international credit rating organization - upgraded Vietnam's national credit rating to BB+ with a stable outlook, while emphasizing that Vietnam has an advantage in attracting FDI thanks to its positive economic outlook.