25 March 2021
In 2020, USD 28.5 billion in foreign direct investment (“FDI”) capital was invested into Vietnam, a decline of 25% compared with 2019.[1] With respect to the sectors of investment, the leading position is still held by manufacturing and processing, accounting for 47.7% of FDI registered capital, equivalent to USD 13.6 billion.
1. Which sectors have been the biggest recipients of FDI in 2020? How does this compare to 2019?
2. With growing global trade tensions with China coupled with the on-going COVID-19 pandemic, companies seemed to be interested in diversifying their supply chains, with Vietnam quickly becoming a principal beneficiary. It is worth noting that the EU is already Vietnam’s second largest (by value) destination for goods. What further momentum will the EVFTA provide?
3. The Regional Comprehensive Economic Partnership (“RCEP”) makes up a market of over 2.3 billion consumers. In what ways, will the RCEP help to attract FDI in Vietnam in particular?
4. Does the EVFTA and the RCEP affect the sectors that traditionally are recipients of FDI or does it also aim to facilitate FDI into growing sectors in Vietnam? And in what ways?
5. Since 1st January 2021, the Law on Investment 2020 (LOI2020) is in force. How does it differ from LOI2014? What does it mean for FDI Investors? What else should FDI investors be aware of when looking at Vietnam for investments in 2021.
- · What does it mean for FDI Investors? What else should FDI investors be aware of when looking at Vietnam for investments in 2021?
