- April 22, 2021
- Posted by: GBS
- Categories: Business, Economics
Over the recent months, 15 foreign companies request Global Business Service (GBS) Company per month for supporting in set-up new company in Vietnam, according to the l GBS.
Sophie Dao, the GBS’ Managing Partner said the figure was the highest so far since the Law on Foreign Investment was promulgated.
This year, Vietnam saw big waves of investment from transnational groups. Major investors in the country, including the EU, Taiwan, Japan, the US, and the Republic of Korea, China and Malaysia have been expanding their investment. Several provinces have made great progress in attracting FDI capital such as southern Ba Ria-Vung Tau province, DongNai province, Ho Chi Minh City and Hanoi.
According to Sophie Dao, the FDI increase will have good impacts on Vietnam’s economy, society and environment, creating an impetus for foreign investment activities next year. In addition, most of the cities, provinces continue to improve investment climate, and accelerate administrative reform in investment licensing procedures. It also sought domestic and foreign capital sources to upgrade transport facilities, seaports, and telecoms services to facilitate the implementation of investment projects.
Vietnam was ranked 70th out of 190 countries by the World Bank’s 2020 Doing Business Report, having fallen one spot on the year. This was despite the country making some progress on the ease of doing business, particularly with regards to paying taxes. Vietnam expects disbursed foreign direct investment to continue to rise as the government steps up efforts to attract factories into the country. There are 19 key sectors attracting FDI inflows. Among them, the processing and manufacturing sector accounted for the highest proportion with $13.6 billion, accounting for 47.7 per cent of total investment capital.
Electricity production and distribution ranked second with investment capital of over $5.1 billion, accounting for 18 per cent of the total registered investment capital. It is followed by real estate, wholesale and retail with the total registered capital of nearly $4.2 billion and $1.6 billion.
The Ministry of Planning and Investment aims to draw more FDI into areas including export-oriented, energy and high-technology by building a more business-friendly environment.
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