FDI inflow expected to hit 40 billion USD in 2024, pushing GDP growth up

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

Production at HanYang Electronic Vietnam Co., Ltd.

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

According to the General Statistics Office, as of June 20, Vietnam had drawn nearly 15.19 billion USD in FDI, up 13.1% over the same period last year.

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

Vu Tu 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% 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 Tran Quoc Phuong said that in the rest of the year, Vietnam 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 Vietnam, he said, holding that the FDI can reach 39-40 billion USD this year, higher than the 2023 figure.

Nguyen Trung Hieu, 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 Vietnam 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 Vietnam./.

VNA