Vietnam must not sit still and wait for FDI to come. If it does, the best will be skimmed off by other countries, according to Nguyen Dinh Cung, a respected economist.

The development of industrial zones (IZs) needs a comprehensive plan to capture the transition of the foreign direct investment (FDI) inflow spurred by trade wars and the COVID-19 pandemic 

Asian investors are the buyers in most M&A and capital contribution deals in Vietnam. However, more and more investors from the US and EU have appeared in recent deals.

Vietnam is expected to see a new foreign direct investment (FDI) wave as more foreign companies plan to move investment into the country.

Starting with the silent move of global smartphone titan Apple, companies have been shifting their facilities to Vietnam, following the call for more lucrative investment opportunities.

Vietnam plans to enact a law to fight against the transfer pricing tax in an effort to enforce transfer pricing rules more aggressively, according to Cao Anh Tuan, general director of the General Department of Taxation (GDT).

While other countries are setting up specific and clear priorities to attract FDI projects, Vietnam is still pursuing a strategy with multiple targets that could lead to missed opportunities.

Prof Nguyen Mai, an expert on FDI, and chair of the Vietnam Association of Foreign Invested Enterprises (VAFIE), pointed out three problems in the picture of FDI in Vietnam.

Vietnamese enterprises’ awareness of EVFTA has been heightened significantly, and they have prepared to grab business opportunities and find a foothold in the supply chain.

Experts believe that the departure of large manufacturing corporations from China, plus the plan to boost global economic development, will bring new opportunities to Vietnam.

Vietnam attracted US$12.33 billion worth of foreign direct investment in the first four months of 2020, a year-on-year decrease of 15.5 per cent due to the impact of the COVID-19 pandemic, according to the Foreign Investment Agency.

Vietnam has some great advantages while competing with regional countries in attracting capital flows moving out of China after the COVID-19 pandemic, experts have said.

Saigon Securities Incorporated (SSI) believes that the highest probability for Vietnam's economy is a V-shaped recovery.

The fate of five of the 12 notorious loss-making projects remain uncertain because the Chinese contractors cannot be taken to court.

Vietnam will have to compete with many rivals to attract foreign investors who are considering relocating their production bases out of China.

Following the prediction about a new strong FDI wave, real estate shares have been sought by investors.

While other industries complain about the lack of jobs, enterprises in supporting industries have been operating at full capacity to satisfy a high number of orders.

Foreign investors are speeding up the restructuring and reallocation of their production networks globally, with Vietnam considered a bright candidate for investment given its location within the world’s most dynamically-developing region.

Japanese appliance-maker Panasonic on May 21 said that next year it will move its Thai-based production of refrigerators and washing machines to Vietnam, laying off some 800 workers.

With its early success in containing the Covid-19 pandemic, Vietnam is having a jump-start among potential investment destinations in attracting a new wave of FDI.