Attracting investment from overseas Vietnamese entrepreneurs has always been one of the top priorities for the Vietnamese government’s foreign direct investment (FDI) and economic development policies.

Vietnam as a Global FDI Destination

FDI is playing a very important role in the socio-economic development of Vietnam. According to the Foreign Investment Agency (Ministry of Planning and Investment), up to now, Vietnam has attracted 34,700 FDI projects with a total registered capital of 418.8 billion USD from 141 countries and territories around the world, of which Vietnam’s major FDI partners are South Korea, Singapore, and Japan. FDI contributes significantly to the economy, accounting for approximately 25% of total social investment and 23% of GDP, as well as contributing 21-23% of budget revenue and employing approximately 6 million people. In addition, FDI inflows now account for 68-70% of Vietnam’s export value and 55% of its industrial production value.

Among Vietnam’s FDI projects, there are 376 FDI projects of expatriates living in 29 countries around the world investing back home with a total registered capital of about $1.72 billion USD in 42/63 provinces and cities of Vietnam and focus on many fields such as energy, processing industry, manufacturing, and services, in which manufacturing and processing account for the majority.

According to a representative of the Ministry of Planning and Investment, the opportunity for Vietnam to attract more FDI inflows from overseas Vietnamese is still very large. Moreover, Vietnam’s economy has now begun to reopen under the new normal, and the country maintains its image as a safe, attractive, and promising destination for foreign investors.

Despite the negative effects of COVID-19 on the global economy, Vietnam’s selective investment attraction policy that prioritizes high-quality projects has proven effective. Nguyen Van Toan, Vice Chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE), agreed that Vietnam’s advantages of favorable geographic location, improving business and investment environment, and better infrastructure system have made it appealing to foreign investors.

Supporting Overseas Vietnamese Entrepreneurs

Attracting investment from overseas Vietnamese entrepreneurs has always been one of the top priorities for the Vietnamese government’s foreign direct investment and economic development policies.

Overseas Vietnamese have always been considered an integral part and driving force of the Vietnamese ethnic community, an important factor contributing to strengthening cooperation and friendship between our country and other countries. 

Right from documents such as Resolution No. 36-NQ/TW issued in 2004, the Party and State have set out key tasks for ministries and agencies at all levels for the overseas Vietnamese community. In which, it is necessary to complete and build a new system of policies to attract and use talents, promote the contribution of overseas intellectuals to the development of the country; as well as complete and develop new policies to attract overseas Vietnamese to invest and do business in the country.

The implementation of Resolution No. 36-NQ/TW is further strengthened by Directive 45/CT-TW issued in 2015, in which the Politburo directed to focus on promoting administrative reform in order to remove obstacles and create favorable conditions for Vietnamese people living in Vietnam. foreigners when returning to Vietnam to live and do business; early re-grant of citizenship to eligible persons; further facilitate home ownership in Vietnam; simplify immigration procedures, investment, transfer, receipt and use of remittances. In addition, it is also necessary to focus on reviewing, supplementing, and perfecting mechanisms, policies, and laws to create a favorable legal corridor for overseas Vietnamese to invest, produce, and do business, thus contributing to attracting foreign investment and technology transfer from other countries to Vietnam and promoting exports to support Vietnam’s investment abroad.

Another important factor that is also being considered by the Government is the maintenance and improvement of overseas Vietnamese communities and associations. The Vietnam Fatherland Front, the Ministry of Foreign Affairs, the Central Mass Agitation Commission, as well as socio-political organizations, have worked closely and effectively in recent years to direct and guide Vietnamese overseas associations, which has resulted in the positive growth of these associations. They have strongly developed a wider scope of operation through the successful application of comprehensive measures to mobilize, rally, and assist Vietnamese nationals in foreign countries, thus actively contributing to enhancing and promoting national unity, heightening national pride and sense of national dignity, as well as attachment to the native land.

The Vietnam Innovation Network was officially launched in August 2018 under the management of the National Innovation Center (NIC) under the Ministry of Planning and Investment. With a network of more than 300 members in 14 countries and territories, the Vietnam Innovation Network is expected to contribute to innovation activities in Vietnam, connect and promote two-way cooperation between Vietnam and host countries such as the US, Germany, Australia, Korea and Japan. Not only that, the Network’s activities are also deployed towards the goal of connecting corporations, investment funds, and domestic start-ups wishing to develop business activities in other countries and in Vietnam.

Currently, overseas Vietnamese receive many more incentives and policy support on immigration, foreign currency transfer, land and housing ownership, and business registration in Vietnam compared to foreign investors. 

In recent years, the government and the National Assembly have introduced many policies to create favorable conditions for foreign investors to do business in Vietnam. Vietnam recently approved a VND 350-trillion economic recovery and development program for two years (2022-2023) to speed up post-pandemic recovery, providing an additional favorable opportunity to attract FDI in general and overseas Vietnamese investment in particular.

Localities and big cities have also been taking initiatives to attract overseas Vietnamese investors. At a recent seminar in August, the Da Nang Investment Promotion Agency called on overseas Vietnamese investors to explore some of Da Nang’s major projects. The seminar included presentations on some significant projects, including Lien Chieu Port, a complex of financial, commercial, entertainment, and luxury apartments; the Da Nang Creative Space; an international trade center; an international hospital; a nursing home; and an international intercollegiate school.

In particular, the start-up phase for the building of Lien Chieu Port has a total estimated investment of nearly 6,484 billion VND, under the authority of the Prime Minister to approve the investment policy. Cash contributions from the investors total $2,269 billion, with credit institutions covering the remaining amount. 

Conclusion

Vietnam will continue to build a favorable investment climate for overseas Vietnamese entrepreneurs to invest in and develop their businesses in the coming years. This, along with other appealing conditions in Vietnam, will surely attract more investment from the overseas communities and contribute to a more dynamic and developed market. As a company with 12 years of experience in FDI consulting, Viettonkin understands the thoughts and desires of investors interested in the Vietnamese market. With a team of experienced experts, we are proud and honored to accompany overseas Vietnamese investors as they explore this potential market. Please contact us right away for more investment recommendations and in-depth information.