BizLIVE -

During the pandemic year 2020, the investment capital into Vietnam was still very strong. At the end of 2020, the total of registered FDI capital in Vietnam reached 384 billion USD, with more than 33.000 projects.

Vietnam Offers Attractive Investment Opportunities for Foreign Investors
Photo Credit: GettyImages
At the webminar Market Focus Vietnam organized today by Geneva Chamber of Commerce, Industry and Services (CCIG) and Swiss-Vietnamese Business Gateway (SVBG), in partnership with the Embassy of Vietnam in Switzerland and Schifferli & Associés, the panelists have given out many good points of Vietnam’s business environment and the reasons why Vietnam should be considered as the good destination for Swiss investors.
In the opinion of, Linh Lan Le, Ambassador of Vietnam to Switzerland and Liechtenstein, Vietnam is outstanding from other countries in terms of Covid-19 pandemic controlling and economic performance.
“The impact of Covid-19 pandemic on the world in tremendous. In Vietnam, there is over 2,000 Covid-19 cases and 36 deaths. Though Vietnam has not been able to fully stop the Covid-19 pandemic but has been praised by other countries for the successful controlling the pandemic, minimizing the impacts. IMF praised Vietnam as successful of how a developing country can fight the pandemic. Vietnam’s economy has shown resilience of the positive growth of 2.9%. Vietnam still among the countries that still grew in 2020 while the rest of the world run into deep recession”, the Ambassador said.
For the outlook of Vietnam’s economy in 2021, Ambassador shared the predictions of WorldBank and Bank of America. Accordingly, Vietnam’s economy in 2021 can grow from 6% to 9.5% at best. And the sian Development Bank (ADB) believes that Vietnam is showing stronger resilience than most similar economies and that its medium- to long-term economic outlook remains positive.
From the Ambassador’s analysis, there are many driving factors for Vietnam’s economy resilience as followings: govenrment policies in sucessful control of the pandemic and effective measures for economic recovery; international economic integration; Vietnam- a highly attractive destination for investment because of its unique position to capitalize on the global chain shift; and finally innovation and digitalization. 
This favorable environment has created very good conditions for the foreign investors to come and invest in Vietnam. Nguyen Duc Thuong, Commercial Counsellor Trade Office – Embassy of Vietnam in Switzerland shared this view. Among the major Asean countries, Vietnam as China still recorded strong growth in 2020. 
Furthermore, the Commercial Counsellor stressed that during the pandemic year 2020, the investment capital into Vietnam was still very strong. At the end of 2020, the total of registered FDI capital in Vietnam reached 384 billion USD, with more than 33.000 projects.
Among the FDI into Vietnam by partners, the top five FDI partners are mostly Asian countries like South Korea, Japan, Singapore,etc. The presence of Western countries among the top FDI partners are still quite low. Switzerland now ranks at the 19th position.
In terms of demographics, Vietnam also has the strong advantage. Vietnam is experiencing a period of “golden population structure” (understood as the proportion of labors doubling the dependent population), which is forecast to last until 2034, the Commercial Counsellor said.
The Vietnam top leaders also have paid strong attention to create favorable conditions for foreign investors in terms of law. The National Assembly of Vietnam passed a new Investment Law on 17 June 2020, effective on 1 January 2021, with many new investment incentives.
For detail, sectors eligible for investment inventives are high-tech activities; manufacturing of new materials; renewable energy; energy-saving products; manufacturing key electronic products, mechanical products, agricultural machinery; manufacturing of IT products, software products, digital contents; agriculture-forestry-aquaculture products; waste treatment; investment in infrastructures; development of public transportation in urban areas; education; medical treatment; manufacturing of medicinal products and medicinal materials.
At the same times, the areas eligible for investment incentives are disadvantaged and extremely disadvantaged areas; industrial parks, export-processing zones, hi-tech zones and economic zones.
Switzerland and Vietnam have enjoyed a friendly and harmonious relationship over half a century. This year, the two countries are celebrating 50 years of bilateral relations. Swiss investors started the first investment in Vietnam quite long time ago. 
Swiss companies such as Nestlé, Roche, ABB, Holcim, Schindler were among the first to set foot in Vietnam when the country opened up its economy in the 1990s. Today, more than one hundred Swiss companies are operating in Vietnam, taking advantage of the country’s huge natural resources, an abundant workforce, and a large and young population with increasing purchasing power and consumption demands.
Switzerland – as a member of the European Free Trade Area (EFTA) – has been in negotiation with Vietnam for a far-reaching FTA since 2012. The two sides are aiming at reactivating the negotiation process as soon as possible in order for Swiss companies to enjoy similar rights and benefits as their EU peers under the provisions of the EU-Vietnam agreements, which entered into force last year.
Over 100 Swiss companies are present in Vietnam today. At the end of 2020, the total volume of their investments stands at roughly 2 billion USD, with 172 projects in force. Switzerland is one of the largest European investors (after Netherlands, UK, France, Germany and Luxembourg) and 19th investor in Vietnam in general. Thousands of jobs have been created as a result of these investments, mostly in the areas such as construction, food processing, IT and pharmaceuticals. Among Swiss companies, there are important multinational corporations such as Nestlé, ABB, Novartis, Roche, Schindler... More than 60 Swiss companies are operating in Ho Chi Minh City and neighboring provinces. Additionally, a growing number of small and medium sized companies have considered Vietnam as a destination to for their investment and business expansion.
There are still many areas potential for Swiss investors including processing and supporting industry; biotechnology; renewable energy; real estate; banking & insurance; agriculture & food processing; M&A Start up; infrastructure & PPP; ICT & software and healthcare & pharmacy.

DIEP NGUYEN