German businesses in Vietnam are more confident about growth and have positive expectations about the country’s economic growth than they did in autumn 2022, according to a biannual survey.

Despite instability in the banking system and the constant periodic raising of interest rates, Vietnam still emerged with an impressive GDP growth rate in 2022 and a positive forecast for 2023.

More than 25,000 foreign-invested enterprises (FIEs) exist in Vietnam, compared to nearly 800,000 local firms. But the FDI companies are the main players in most fields.

The northeastern province of Quang Ninh recently approved two Foxconn projects totalling more than 246 million USD in investment.

Vietnam has become a base for large foreign companies. Industrial real estate is believed to be a profitable business with great opportunities for development.

“Our final goal is to help Vietnam’s products to be present in the US and Canadian markets and to help Vietnamese enterprises become global companies,” said Ann Huynh, a businesswoman who grew up in Vietnam but later achieved fame in the US.

Streamlining FDI approval process is a crucial step in driving the development of the Mekong Delta, a vital economic region in southern Vietnam with untapped potential. However, what is impeding FDI inflows into the region?

Large Korean corporations are still looking to Vietnam and consider the country the number one investment destination, said Hoang.

Vietnam had attracted a total of 13.43 billion USD in foreign direct investment (FDI) from the beginning of this year to June 20, down 4.3% year-on-year, according to the General Statistics Office.

The government of Haiphong City has recently approved a list of 137 projects to call for foreign investment in the 2023-2025 period.

The flows of foreign direct investment (FDI) into Vietnam are forecast to increase in the second half of the year as the downturn has been improved in recent months, experts have said.

Vietnamese tax officials are looking at customised support mechanisms to alleviate the consequences of the global minimum tax (GMT) on foreign enterprises.

The disbursement of capital from FDI projects in the first half of this year has reached US$10.02 billion, showing a modest increase of 0.5% compared to the same period last year, according to the Ministry of Planning and Investment.

South Korean President Yoon Suk Yeol, who paid a state visit to Vietnam several days ago, was accompanied by top businesspeople of his country, including billionaires and leaders of conglomerates such as Samsung, SK, Hyundai and LG.

Vietnam’s property market is still attractive to the foreign community, but it is necessary to continue to improve its legal landscape, information transparency, and data availability to create further enhancements for foreigners to invest.

Despite a decline in global investment flows, Vietnam remained an attractive destination for foreign companies, especially large-scale enterprises, experts have said.

With 9,666 projects capitalised at over US$81.5 billion, the Republic of Korea (RoK) has retained its position as the leading foreign investor in Vietnam, according to the Ministry of Planning and Investment (MPI).

In early June, two Chinese companies specializing in energy storage and battery manufacturing revealed their plans to invest a staggering US$1 billion in expanding production facilities in Vietnam.

Surging interest from foreigners prompts questions about the growing allure of Vietnam's real estate market.

Foreign suppliers have paid more than 7.36 trillion VND (312.8 million USD) worth of taxes through an electronic portal dedicated to them from March 21, 2022, according to the General Department of Taxation (GDT).