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Vietnam is an attractive destination for foreign investors thanks to its high, stable growth, large domestic market and young, well-educated human resources, said Paulo Medas, head of the International Monetary Fund (IMF) team to Vietnam at the Annual Meetings of the IMF and the World Bank Group (WB) held recently in the US.

Vietnam remains attractive destination for foreign investors 

According to Medas, despite rising geopolitical instability on the globe, Vietnam’s economy experienced a growth rate of 5.66 per cent in the first quarter of this year. Exports continue to see an upward trend, facilitating overall growth until the end of this year.

He projected that Vietnam's economy is poised to grow by almost 6 percent this year, buoyed by recovering domestic demand and supportive fiscal policies from the Government. However, he emphasized the necessity for Vietnam to maintain a flexible fiscal approach to mitigate risks and ensure robust growth.

The expert highlighted that Vietnam remains a significant recipient of foreign direct investment, particularly amid the global shift of supply chains towards Asia, with Vietnam emerging as a preferred destination for foreign investors.

Nonetheless, to sustain its allure, Vietnam must persist in enhancing its business environment, simplifying administrative processes, bolstering infrastructure development, particularly in the realm of green energy, and fostering innovation.

Nguyen Bich Lam, former General Director of the General Statistics Office has granted an interview to Vietnam News Agency on the picture of FDI attraction and solutions to improve capacity and motivation to promote economic growth in the coming time.

The expert said in the first two months of the year, registered FDI reached 4.29 billion USD, up 38.6% compared to the same period in 2023.  The amount of FDI disbursement reached 2.8 billion USD, an increase of 9.8% year on year.

Lam acknowledged that in the context of uncertainties and fierce strategic competition, the fragmented world economy has reduced and reshaped international investment flows, however, the country is still an attractive market for foreign investors, because its economy has recovered and developed in a relatively stable fashion.

PwC's "World in 2050" study has stated that Vietnam will achieve the second highest annual GDP growth rate worldwide and GDP will grow by an average of 5.3% per year over the 36-year period from 2014-2050. This important macroeconomic indicator is a testament to the success of the Government's management in recovering and maintaining the stable development of the economy.