Experts view Vietnam as a promising investment destination but there remain certain difficulties even as investment commitments continue to come from foreign investors, especially in large-scale projects with high technology and technical content.

“Vietnam is a very important market, and I think that the next few years will see it become a major aviation hub and partner for our industry,” Mr. Michael A. Arthur, Senior Vice President of Boeing Corporation and President in Charge of Boeing Global, was quoted on June 1 by Vietnam Investment Review as saying.

With advantages in population, socio-political and macro-economic stability, and strong improvements in its business environment, among others, Vietnam has emerged as an attractive investment destination. Many leading multinational companies have chosen the country as a strategic market and an important link in investment and business strategies.

For example, after a $1.3 billion investment in a factory in southern Binh Duong province, the LEGO Group has proposed a 50-MW solar power production site. The project will be deployed next to its toy factory to serve production.

In contrast to additional capital and capital contributed by foreign investors to buy shares, newly-registered FDI capital in Vietnam has been quite weak in recent times. Of the total of $11.71 billion in FDI in Vietnam in the first five months of this year, newly-registered capital was $4.12 billion, down 53.4 per cent year-on-year, while additional capital was $5.61 billion, up 45.4 per cent, and capital contributed to buy shares $1.98 billion, up 51.6 per cent.

According to the Foreign Investment Agency (FIA), disbursed FDI in Vietnam in the first five months was estimated at $7.71 billion, up 7.8 per cent year-on-year. “This shows that investor confidence in Vietnam’s growth prospects remains positive,” said Mr. Phan Huu Thang, former Director of the FIA.

Furthermore, in addition to continuing to improve its business environment and create favorable conditions for investors, complete infrastructure, and boost the quality of its human resources, etc., Vietnam also needs to clearly define priority fields and projects under specific criteria.