What attracts foreign investors to a country

Many FDI companies in Vietnam have also shared their concerns about the epidemic’s impacts on production and business activities. Large companies such as Samsung, LG, Formosa, Apple, Toyota and Honda have complained about a lack of input materials due to difficulties in importing from China, as well as a lack of workers due to the blockade, isolation or restriction of travel by Chinese workers and experts, which is required to prevent further spread of Covid-19. LG, for example, complained that if the epidemic continues to spread in the next two weeks, the company will face a shortage of production materials. Formosa affirmed that blocking import of steel materials from China will affect the progress of production and sales. Apple’s schedule to increase exports from Vietnam by 30 percent in 2020 will also be affected as its output depends on original equipment manufacturers (OEMs) such as Samsung, Foxconn and LG. … [Read more...] about FDI attraction expected to grow five percent

The supporting industries in Dong Nai Province are divided into various groups, including fiber, yarn, and fabrics; electronic components, tools, and spare parts; equipment for all kinds of machinery; input materials for the footwear industry. Many world-famous corporations in the field of supporting industries are present in the province, such as Bosch, Hyosung, Fujistu, Schaeffler, Vision Group, Kenda, and Mabuchi Motor. The province has seriously selected FDI projects so the statistics in recent years showed that 50 percent of FDI capital into the country belonged to the supporting industries. The goal of the province in prioritizing capital attraction for the supporting industries is to provide input materials for many other enterprises in the province and gradually increase the localization ratio of export products. Therefore, it will be easier for enterprises to enjoy tariff incentives from effective free trade agreements that the country has signed. In the past years, in … [Read more...] about Dong Nai attracts investments in supporting industries

Almost all German companies in Vietnam have already got a taste of how the epidemic would affect their business activities since the coronavirus broke out. They have been feeling the initial impacts, especially because of the travel restrictions (86 per cent). 59 per cent of German companies reported that coronavirus has disrupted their supply chains while 55 per cent are experiencing cancellations of contracts and 50 per cent are rescheduling new investment plans due to the outbreak of coronavirus. … [Read more...] about Despite COVID-19, German companies hell-bent on investing in Vietnam

As of March 20, approximately US$90 million in ODA and concessional loans of foreign sponsors had been disbursed.  Since the beginning of the year, the total amount of ODA and preferential loans signed has reached US$105 million, while the total ODA and disbursed loans were estimated to stand at US$424 million, equivalent to VND 9,834 billion. Regarding foreign investment, the Ministry of Planning and Investment stated that the complicated nature of the novel coronavirus pandemic has greatly affected the travel of investors, along with their new investment plans to expand existing projects. This therefore contributed to reducing the attraction of foreign investment in the first quarter of 2020, in terms of both number of projects and total registered investment capital. … [Read more...] about No fresh ODA projects signed during March

The world is currently teetering on the brink of the global health crisis. This pandemic was the trigger of the downturn, but certainly not the cause, which lies much deeper. After the longest economic boom of modern times after 2008, many seemed to have forgotten that economic crises have always been and still are quite normal. As in the past, there will be winners and losers. It will depend on how countries will deal with the crisis and what economic policy measures will be taken. Vietnam is presenting an interesting package of measures. Can it serve as a model? … [Read more...] about BUSINESS NEWS HEADLINES APRIL 9