Vietnam has become one of the world’s fastest growing economies since the country first opened up to foreign trade and investment more than three decades ago, 

In late July, news that 15 Japanese companies received support from their Government to move to Vietnam from China became a hot topic in the media.

By fulfiling certain criteria, some foreign investors would receive special treatment, said Minister of Planning and Investment Nguyen Chi Dung.

Even if the latest proposal for international investors to be able to own up to 35 per cent of Vietnamese oil firms comes true, it may still not be smooth sailing for foreign groups to step up in the market.

Vietnam has for the first time been named a “Semi-Transparent” market in the 2020 Global Real Estate Transparency Index (GRETI) by Jones Lang LaSalle (JLL) thanks to the progress in its largest markets, HCM City and Ha Noi. 

Many financiers from the Republic of Korea (RoK) are expecting that regulations on financial investment activities in Vietnam will become clearer and more open with the revised Investment Law coming into force.

An online discussion took place recently in Washington D.C. to look into post-COVID-19 investment opportunities throughout ASEAN, with some companies saying they will soon announce investment and business expansion plans in Vietnam.

As Vietnam is attracting high-quality foreign inflows, domestic firms now have an even greater opportunity to draw technology transfer to improve added value in its manufacturing industry.

Driven by new encouraging policies and motivations, more fresh opportunities will be coming for Japanese investors in Vietnam, expecting a new investment wave ahead.

The Ministry of Industry and Trade (MoIT) has proposed the Government to allow petrol and oil businesses to transfer stakes to foreign investors, but not exceeding 35 per cent.

Four foreign investors petitioned Vietnamese authorities to prosecute and take Huy Nhat into custody for appropriating $25 million from them.

Speeding up infrastructure development and improving ease of doing business and vocational training are among things Vietnam can do to make itself more attractive to foreign investors post-Covid-19, according to VinaCapital.

Newly-licensed large-scale projects which can attract satellite ventures in the supporting industries are expected to reinforce Vietnam’s initial target of almost $40 billion in registered foreign investment capital for the whole year.

The Vietnamese National Assembly has adopted the new Law on Investment, with new rules in favour of foreign investment, including from the US, which is expected to surge in Vietnam in the time to come.

With an increasingly open business environment, and continuing international integration, Vietnam has long been regarded as a promising destination for foreign investment.

The Sino-American trade war together with supply chain disruptions due to the novel coronavirus pandemic has prompted many an investor to plan to relocate their production facilities in order to reduce their reliance on China. 

Vietnamese transport firms wherein foreign investors contribute over 51% of the chartered capital will not be licensed, according to the Ministry of Transport.

Along with luring in new foreign investment inflows, one of the major tasks for the government is to tackle oversights in regards to foreign-invested projects without construction licences.

Amidst the global trend of investment shifts, Hanoi is betting on new orientations and solutions to increase its appeal, expecting to open opportunities for international investors to venture further afield.

A working group has just been founded under the Prime Minister’s decision to promote foreign investment in Vietnam.