Vietnam continues to be an attractive destination for FDI capital flows

Ông Lim Dyi Chang, Senior Director of Corporate Banking, UOB Vietnam Banking.
Mr. Lim Dyi Chang, Senior Director of Corporate Banking, UOB Vietnam.

Sharing with Vneconomy, Mr. Lim Dyi Chang, Senior Director of Corporate Banking, UOB Vietnam, emphasized that “Vietnam’s economy holds a key position in the ASEAN region. Average growth of 6%/year. Over the past 20 years, Vietnam’s GDP has reached 10.2 trillion VND (equivalent to 430 billion USD) by 2023, approaching the remaining large countries in ASEAN such as Thailand, Singapore, Philippines and Malaysia.

Also according to Mr. Lim Dyi Chang, the rapid growth of Vietnam’s economy is not surprising as this country has main advantages compared to the rest of ASEAN such as: (1) Strategic location. Vietnam is located near China and has a long coastline with more than 290 seaports. (2) Population of more than 100 million people, the majority of whom are of prime working age. The rapidly growing middle-income class is also creating strong domestic demand/consumption. (3) Stable political situation with friendly policies towards foreign investment and trade.

“UOB recognizes the importance of Vietnam in Asia’s supply chain network and we look forward to taking advantage of Vietnam’s rapid economic growth to exploit the vast business opportunities in the sector. banking sector here. The bank’s injection of an additional VND 3 trillion into subsidiary banks in Vietnam by the end of 2023 is a testament to our commitment to Vietnam’s future,” Mr. Lim Dyi Chang added.

Recently, Vietnam has attracted a lot of FDI capital from chip businesses and is considered to have the opportunity to become a global semiconductor center. What do you think about this?

Vietnam’s emergence as a semiconductor investment hub shows strategic alignment with global demand for high-tech products. Vietnam’s semiconductor exports reached 562 million USD from February 2022 to February 2023, making Vietnam Asia’s third largest supplier to the United States, after Malaysia and Taiwan (According to the Exhibition report). UOB’s Q2 2024 global outlook).

Elevating Vietnam’s relations to a comprehensive strategic partnership with the United States by 2023 further catalyzes a new wave of investment in the semiconductor industry. Despite the growth of FDI inflows, Vietnam recognizes the importance of synchronized development of domestic capabilities.

UOB’s strategic focus on sectors such as Telecoms, Media and Technology (“TMT”) is aligned with key semiconductor market drivers such as digital transformation, High Performance Computing and demand. growing demand for 5G smartphones. The bank predicts that opportunities arising from export controls imposed by the United States on certain countries will bring significant benefits to Vietnam as companies have the ability to shift production facilities. Exporting to low-cost ASEAN countries.

UOB’s collaboration with leading semiconductor manufacturers underscores the bank’s commitment to supporting the expansion of the semiconductor industry in Vietnam. The bank’s focus on building trade corridors and connections in the TMT and Consumer Goods sectors reflects a proactive approach in taking advantage of Vietnam’s semiconductor potential for sustainable economic development.

How do you assess Vietnam’s economic prospects in 2024? The global economy is facing many challenges, will that affect FDI capital flows into Vietnam?

Vietnam’s economic prospects in 2024 are generally brighter, in line with global economic trends. The Government’s goal of achieving economic growth of 6-6.5% in the Year of the Dragon is within reach, supported by prestigious organizations such as the IMF, WB, and ADB.

Vietnam’s economy faces both internal and external challenges, but the Government’s proactive measures include promoting effective public investment to stimulate demand, create jobs and promote economic activities. economy. Structural reforms, especially in the energy and banking sectors, are considered necessary for long-term and sustainable growth.

Commitment to investing in a high-quality workforce is identified as an important factor for the success of the Vietnamese economy. Reforms in the education system are considered necessary to meet the needs of a rapidly growing economy.

Regarding FDI investment, Vietnam continues to be an attractive destination with a significant number of active projects and newly registered capital. The country is moving up the high-tech ladder, especially in technology and chip manufacturing. FDI inflows are expected to remain strong, driven by opportunities in these emerging sectors.

The UOB Business Outlook 2024 Study shows that businesses have a positive view of the business environment, with the majority expecting results to improve in 2024. Businesses in the TMT sector technology, media and telecommunications) and Industry, Oil and Gas expressed a more optimistic outlook. China, Indonesia and Vietnam are the countries with the strongest expectations for better performance in 2024.

While challenges such as inflation still exist, businesses predict inflation will decline within the next 6 months to 2 years. The 2024 outlook shows optimism as businesses are looking for support in the form of tax breaks, partnership opportunities and employee training to achieve their goals. Overall, Vietnam’s economic resilience and strategic initiatives will help the country continue to grow in the face of global challenges.

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