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<h2 style="text-align:justify">VOV.VN - While global foreign direct investment (FDI) last year increased by just 3%, FDI inflows into Vietnam witnessed an upturn of 32.1%, thereby affirming the attractiveness of the local investment climate, according to the 2023 FDI annual report released on March 26.</h2>

<img alt="fdi inflows in vietnam sees upsurge of 32.1 annual report picture 1" src="https://media.vov.vn/sites/default/files/styles/large/public/2024-03/hoi_nghi_0.jpg" title="fdi inflows in vietnam sees upsurge of 32.1 annual report picture 1" />

An overview of the meeting to unveil the 2023 FDI annual report

Most notably, the majority of FDI inflows was poured into processing and manufacturing, with capital reaching US$23.5 billion, accounting for 64.2% of total newly registered capital.&nbsp;

Ho Chi Minh City was the leading FDI attractor last year with a total registered capital of US$5.85 billion, followed by Hai Phong, Quang Ninh, Bac Giang, and Thai Binh.&nbsp;

Notably, international organisations and foreign investors continue to highly appreciate the Vietnamese investment environment.&nbsp;

According to assessments conducted by the Korean&nbsp;Chamber&nbsp;of Commerce&nbsp;(KOCHAM), the Japan&nbsp;External&nbsp;Trade Organization (JETRO), the European&nbsp;Chamber&nbsp;of Commerce in Vietnam (EuroCham), and the American Chamber of Commerce in Vietnam (AmCham), foreign investors&#39; confidence in the country is increasing and remains optimistic.

However, these organisations also pointed out a number of shortcomings in the business climate, including cumbersome administrative procedures leading to rising business costs, inadequacies occurring in infrastructure system, a general shortage of high-quality human resources, and slow progress in the green transition process.&nbsp;

Experts therefore underlined the importance of changing the mindset in order to selectively attract FDI with a focus on high-quality FDI capital flows.

They also set out solutions for effectively attracting FDI capital flows by fine-tuning the legal system, focusing FDI inflows into high-tech industries, including the semiconductor industry, and strengthening supply chain linkages of Vietnamese enterprises with FDI firms, especially with transnational corporations.

Think tanks also emphasised the need to accelerate infrastructure upgrade, especially in the fields of energy, digital media, and transportation, alongside promoting the national administrative reform and strengthening the training of a highly-qualified workforce.

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