Việt Nam expects FDI to hit $40b in 2024, pushing GDP growth up

With positive results seen in the first half of this year, Việt Nam hopes foreign direct investment (FDI) inflow in 2024 to hit US$40 billion in the whole year.

With positive results seen in the first half of this year, Việt Nam hopes foreign direct investment (FDI) inflow in 2024 to hit US$40 billion in the whole year, contributing to boosting the country’s growth, according to experts.

FDI was an important factor pushing Việt Nam’s GDP growth rate in the first half of 2024 to 6.2 per cent, laying the foundation for the Ministry of Planning and Investment (MPI) to adjust the country’s growth target for this year to 7 per cent.

According to the General Statistics Office, as of June 20, Việt Nam had drawn nearly $15.19 billion in FDI, up 13.1 per cent over the same period last year.

Notably, the FDI disbursement in the January-June period hit about $10.84 billion, a rise of 8.2 per cent year on year and a record for the first half of a year in the past five years.

Vũ Tú Anh, Director of the Centre for Economic Information, Analysis and Forecasting under the Central Economic Commission, cited employment data in FDI firms in the first half of this year, which revealed a rise of 4.8 per cent year-on-year.

He held that the FDI and cash flow from China and Western countries will create a huge boost and bring abundant opportunities for the Vietnamese economy from now and in the next 10 years.

MPI Deputy Minister Trần Quốc Phương said that in the rest of the year, Việt Nam will still be an FDI magnet.

An MPI survey showed that foreign investors are still confident in the Vietnamese market and interested in continuing to invest in Việt Nam, he said, holding that the FDI can reach $39-40 billion this year, higher than the 2023 figure.

Nguyễn Trung Hiếu, General Director of NTP Asset Management JSC, attributed the good FDI attraction results so far this year to the country’s stable macro-economic situation and good conditions in infrastructure system, human resources, tax, fee and land reserve access.

Hieu asserted that other factors ensuring the competitiveness of Việt Nam include low construction cost, low wage level and suitable power prices.

He predicted that FDI will continue to be a bright spot in the macro-economic picture of Việt Nam.