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Vietnam Targets $40 Billion in FDI for 2024 Amid Positive Economic Growth

Hanoi, July 11, 2024, The Europe Today: Vietnam aims to attract $40 billion in foreign direct investment (FDI) in 2024, building on positive results from the first half of this year, experts report. This anticipated FDI inflow is expected to significantly boost the country’s economic growth.

FDI played a crucial role in driving Vietnam’s GDP growth rate to 6.2 percent in the first half of 2024, prompting the Ministry of Planning and Investment (MPI) to revise the country’s growth target for the year to 7 percent.

According to the General Statistics Office, as of June 20, Vietnam had secured nearly $15.19 billion in FDI, a 13.1 percent increase compared to the same period last year. FDI disbursement from January to June reached approximately $10.84 billion, marking an 8.2 percent year-on-year rise and setting a record for the first half of the past five years.

Vũ Tú Anh, Director of the Centre for Economic Information, Analysis and Forecasting under the Central Economic Commission, highlighted a 4.8 percent year-on-year increase in employment within FDI firms in the first half of this year. He emphasized that FDI, along with cash flow from China and Western countries, will provide significant momentum and create abundant opportunities for the Vietnamese economy over the next decade.

MPI Deputy Minister Trần Quốc Phương stated that Vietnam will continue to attract substantial FDI for the remainder of the year. An MPI survey indicated that foreign investors remain confident in the Vietnamese market and are keen to continue their investments in the country, projecting FDI to reach $39-40 billion this year, surpassing the 2023 figure.

Nguyễn Trung Hiếu, General Director of NTP Asset Management JSC, attributed the strong FDI attraction to Vietnam’s stable macro-economic conditions, robust infrastructure, skilled workforce, and favorable tax, fee, and land access policies. He also cited low construction costs, competitive wage levels, and suitable power prices as key factors ensuring Vietnam’s competitiveness.

Hiếu predicted that FDI will remain a bright spot in Vietnam’s macro-economic landscape, continuing to drive growth and development in the years to come.