Expert: Vietnam in the "sights" of foreign investment after the pandemic

Vietnam in the "sights" of investment

Vietnam has currently recorded only 288 cases of Covid-19 and has not recorded any deaths. This gives Vietnam the conditions to recover its economy earlier than most other countries,  Reuters quoted health experts as saying.

"Thanks to the rapid response to the epidemic, we predict that investment will pour into Vietnam after the pandemic," said Kizuna Development Joint Stock Company, a company specializing in factory construction in Vietnam, commented to Reuters. The company, whose customers are mainly Japanese and South Korean investors, said it is planning to complete a factory with an area of 100,000m2 in the south of Vietnam due to the prediction of a sharp increase in demand after the pandemic. "The area of this factory will be completed around July," Kizuna said.

Investment consultants for foreign businesses said that Vietnam's success in responding to the pandemic has boosted the confidence of foreign investors. "In many of my discussions, Compared to many other countries in the world, Vietnam is on the radar of more investors," said Michael Sieburg, a partner at an investment consultancy in Asia YCP Solidiance.

The Ministry of Planning and Investment said that Vietnam is now ready to support foreign businesses to find new production facilities. "These opportunities will include shifting investments, especially for large-scale multinationals looking to diversify their supply chains to other regions, including Southeast Asia. Vietnam is one of the first selected destinations," said Deputy Minister of Planning and Investment Tran Quoc Phuong.

 Reuters commented that this shift has begun. Before the Covid-19 pandemic occurred, many businesses located in China sought to relocate production facilities in the context of rising labor costs due to US-China trade tensions. Vietnam is one of the destinations that these businesses choose. Trade agreements such as the EU-Vietnam Free Trade Agreement (EVFTA) are also factors that help encourage investment capital flows into Vietnam.

Fred Burke, managing partner at Baker McKenzie International Law Firm, also said that Vietnam's effective response to the Covid-19 pandemic has strengthened the confidence of businesses operating here and this will make a significant contribution to the economy recovery.

"Vietnam has created great confidence. In the past, at the time of the outbreak of the epidemic, foreign investors often tended to bring their investments back to their hometowns in North America or Europe, and even Northeast Asia, but now when the death rate in these regions is high, investors feel safer, even safer when in Vietnam," Mr. Burke said.

According to data from the General Statistics Office, after 5 years of growth, foreign investment in Vietnam decreased by 15.5% in the first 4 months of this year, to 12.3 billion USD. Despite this, Vietnam still maintains this year's GDP growth target of over 5%, a strong target when the global economy faces a deep recession.

The secret to success

 

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The international press has continuously praised Vietnam's Covid-19 pandemic response campaign. The Economist magazine said that the secret to Vietnam's success is a quick response and an effective public health system. Some opinions say that, thanks to the young population and the widespread vaccination of the BCG vaccine, the Covid-19 infection rate in Vietnam is lower than in other places.

The Economist pointed out that Vietnam is one of the few success stories in controlling the Covid-19 epidemic besides South Korea and New Zealand, and it is worth mentioning that so far Vietnam has only recorded 288 cases of Covid-19. there have been no deaths.

Todd Pollack, an infectious disease expert in Vietnam, said that the reason for Vietnam's success is simple: "Vietnam has acted early and drastically, applying proven methods that have helped significantly prevent the spread spread of the virus. If prevented quickly, an exponential increase in cases will be avoided."

Mr. Pollack also agreed with the opinion that, in addition to the effectiveness of the large-scale testing program and centralized quarantine, cultural factors also contribute significantly to Vietnam's epidemic control efforts. such as the spirit of willingness to learn from experience, people obediently wear masks in public places, are ready to isolate and respect the advice of experts.

This expert also pointed out that the success is also thanks in large part to the fact that the medical community quickly isolates and effectively isolates infected people to avoid spreading in the community. especially to protect the elderly.

On the other hand, Mr. Pollack warned that although there have been great successes in controlling the epidemic, Vietnam still needs to be cautious to avoid the risk of a re-outbreak.

Minh Phuong
According to the Economist, Reuters