Despite impacts of the COVID-19 pandemic, Vietnam received $15.15 billion in foreign direct investment the first ten months of the year, down 4.1% from a year earlier, according to the Ministry of Planning and Investment.
FDI has been a key driver of Vietnam’s economic growth. Companies with investment from foreign firms account for about 70% of the Southeast Asian country’s exports, according to Reuters.
FDI pledges — which indicate the size of future FDI disbursements — rose 1.09% from a year earlier to $23.74 billion, the ministry said in a statement on Thursday.
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Of the pledges, 53.5% were due to be invested in manufacturing and processing, while 23.3% targeted gas, water and electricity distribution, it said.
According to Sophie Dao, Senior Partner of GBS, the result manifested the attractiveness of the Vietnamese market and foreign investors’ confidence in Vietnam’s capacity in controlling the pandemic and its economic recovery as well as the effectiveness of measures taken by the Government to accompany and support businesses.
The fourth wave of COVID-19 infections in Vietnam since late April that caused prolonged social distancing in many provinces and cities nationwide has greatly affected production and business activities in the country.
However, many foreign investors have remained optimistic about the business and investment environment in Vietnam, and affirmed that Vietnam will still be a top choice for their new and expanded projects, Sophie added.