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<h2 style="text-align:justify">In foreign investors&#39; eyes, Vietnam remains an important investment destination in the medium and long terms amidst the ongoing global supply chain restructuring, according to the Ministry of Planning and Investment (MPI).</h2>

<img alt="vietnam remains important investment destination in medium, long terms mpi picture 1" src="https://media.vov.vn/sites/default/files/styles/large/public/2024-07/Screenshot%202024-07-11%20170348.png.jpg" title="vietnam remains important investment destination in medium, long terms mpi picture 1" />

The global economy is forecast to recover weakly and face numerous significant risks and challenges in 2024 due to complex developments in the post COVID-19 pandemic. Geo-political instability and the continued competition among major countries is anticipated to leave impacts on the global economy in the medium and long terms.

New standards and even interventions by some governments to guide investment activities can affect the shift of foreign direct investment (FDI). Thus, the FDI flows are forecast to increase slowly and concentrate more among the countries with geo-political linkages, especially in strategic fields, the ministry said.

However, many domestic and foreign financial institutions believe that Vietnam&#39;s FDI attraction this year will maintain a positive pace due to three factors.

First, Vietnam now has an important and increasingly reinforced role in the supply chain diversification strategy of multinationals. Second, its economic growth has recovered more positively this year. And finally, domestic and foreign financial institutions affirmed that the country has advantages in keeping steady macroeconomic growth.

Besides, Vietnam also holds potential for investing in many pioneering industries, the MPI noted, adding that the renewable energy sector is grabbing investors&#39; interest, with a focus on clean energy sources such as solar and wind power to enhance the electricity supply sustainability.

Investors&#39; trust in the country has also continued to be reinforced. They believe in the Government&#39;s policies and the development future of the economy, the MPI went on.

The ministry perceived that Vietnam must overcome some bottlenecks by, for instance, quickly preparing skilled human resources, especially for the semiconductor industry.

Statistics from the MPI showed positive results in FDI attraction in the first half of 2024.

Vietnam attracted nearly US$15.2 billion&nbsp;in FDI in H1, a year-on-year increase of 13.1%. Notably, the disbursed FDI in the reviewed period hit about US$10.84 billion, a rise of 8.2% year-on-year.

The quality of investment projects has improved considerably as seen in the new investments in and expansion of large projects in the fields of semiconductor, energy, electronics, and products with high added value.

Investment capital was mostly channeled into the localities with such advantages as good infrastructure, stable human resources, improvements in administrative reforms, and dynamic investment promotion. They include Bac Ninh, Ba Ria - Vung Tau, Quang Ninh, Hanoi, Hai Phong, Ho Chi Minh City, and Dong Nai. The majority of investment came from traditional Asian partners like Singapore, Japan, Hong Kong (China), the Republic of Korea, and China.

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