As foreign direct investment (FDI) is slowing down globally due to the COVID-19 pandemic’s impacts and geopolitical conflicts, intra-Asian investors are important to Vietnam. Eight among the 10 biggest investors in Vietnam are from Asia. FDI into Vietnam primarily comes from Northeast Asian countries and China, according to some economic experts.

A study by HSBC showed FDI investors contribute to over 80 per cent of the country’s total exports and more than 25 per cent of domestic investments. Of these, most are intra-Asian companies.

“Foreign Direct Investments have been one of the key catalysts spurring and transforming Vietnam into one of the most open economies in the region,” Joonsuk Park, head of international subsidiary and wholesale banking at HSBC Vietnam, was quoted as saying by a news agency.

“These top intra-Asian investors continue to maintain their focus on Vietnam,” he said.

HSBC has seen interest from several global intra-Asian multinationals engaging across a wide array of sectors, including retail, semiconductors, electronics, mobile parts, plastics, renewables and logistics, looking to either expand or invest newly into the country.

Several Asian nations are export-oriented, and hence, understand the innate advantage of leveraging Vietnam’s free trade agreement platform, he added.

Fibre2Fashion News Desk (DS)

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FDI from intra-Asian investors important for Vietnam

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