Making asean become to be an attractive investment destination
1. ASEAN join hands to welcome global investment capital flows
ASEAN is known as an attractive investment destination. Although trade conflicts has been increasing and Covid-19 has changed in a complicated way ASEAN has opportunities to catch a shifting global investment inflows. This opportunity becomes greater when the ASEAN Economic Ministers officially held a meeting to discuss and finalize relevant legal documents in the framework of the ASEAN Comprehensive Investment Agreement on August 25th, to check and remove barriers and obstacles, so as to facilitate intra-regional investment activities.
According to the ASEAN Investment Report 2019 announced by the Secretariat of the ASEAN Association at the end of 2019, foreign direct investment (FDI) in ASEAN has increased for the third consecutive year, reaching a record 155 billion USD in in 2018, compared to $ 147 billion the year before. The ratio of investment in ASEAN in total global FDI also increased from 9.6% in 2017 to 11.5% in 2018.
When the trade war broke out, especially after the outbreak of the Covid-19 pandemic, the world supply chain has been paralyzed, ASEAN became an even more attractive destination. Investors coming from Europe, the US, Japan, and Korea are all considering ASEAN as a potential alternative destination. Therefore, many countries in the ASEAN region, such as Thailand, Indonesia, Malaysia, the Philippines … have issued many policies to catch up with this capital flow. At present, we are joining hands to make ASEAN an attractive and effective destination.
2. Vietnam urgently welcomes opportunities
To make ASEAN a strong economic region, Co-operation and mutual development are the path that Vietnam must take. However in the race to attract investment, Vietnam needs to accelerate decisively. The inflow of investment capital shifting into ASEAN has been increasing. Vietnam has many opportunities to attract investment, not only from non-ASEAN partners, but also ASEAN member countries.
According to data from the Ministry of Planning and Investment, ASEAN member countries have invested in Vietnam over 82.2 billion USD, accounting for 21% of total foreign investment in Vietnam. In which, Singapore (with 54.98 billion USD); Malaysia, (with 12.76 billion USD); Thailand (with 12.4 billion USD). These are not only the leading investment partners in ASEAN, but also the leading investment partners of Vietnam. Singapore, Thailand, and Malaysia are in the top 10 of countries and territories having large investments in Vietnam.
Meanwhile, in the opposite direction, Vietnam has invested 10.4 billion USD to ASEAN countries. This number accounts for nearly 50% of the total outward investment capital of Vietnam. What a not small proportion.
Thus, regardless of the aspect, ASEAN is also a major investment partner of Vietnam. In this race, according to Mr. Do Nhat Hoang being Director of the Foreign Investment Department (Ministry of Planning and Investment), Vietnam needs to be ready in land, procedures, infrastructure, quality the amount of human resources… to be able to catch up with the opportunities.
Nguồn bài viết: Báo đầu tư – Báo mới
Please do not hesitate to contact us for more information to be supported and consulted:
LUAT SU RIENG (LSR) LAW FIRM
Address: no. 16 Nguyen Quy Canh Street, An Phu Ward, District 2, Ho Chi Minh City
Hotline: 1900252503. Press No. 1
Email: i[email protected]