The lesson to be learned from every Covid-19 crisis and pandemic - an unprecedented global crisis in history - certainly has many lessons to be learned. But from an economic point of view, it can be seen that the countries with the strongest economies are more likely to come out of the crisis unchanged. Few ASEAN countries can claim the economic power of Singapore.

However, economists and international organizations believe that Vietnam has laid a solid foundation for development. Vietnam has emerged as a hub for foreign direct investment (FDI) over the past decade, with a sustained CAGR of 10.4% from 2013 to a record 16 last year from $ 12 billion. An overall increase of 81%. Compared to Singapore, it registered an increase of 63% over the same period last year, while Thailand and Malaysia actually cut FDI inflows. In the ASEAN region, in the Philippines alone, FDI is growing faster than Vietnam at 104%, although this is higher than the lower level of USD 3.7 billion in 2013.

FDI is an important source of external private finance for developing countries and contributes significantly to long-term economic development. FDI is largely driven by the long-term prospects of foreign investors to profit from productive activities over which they have direct control, often through joint ventures with local firms. based in their respective countries. The results of these cross-border economic relations include opportunities for technical training, technological advancement, improved job prospects, improved public finances, and improved export potential. Both Singapore's economic success and China's explosive growth over the past few decades can be at least partly attributed to foreign direct investment (FDI), which has boosted investment flows. double. numbers per year since the 1997 Asian financial crisis.

Meanwhile, in China, FDI rose from about $ 11.15 billion in 1992 to a peak of $ 290 billion in 2013, then the trend began to reverse as rising labor costs lead to international investment looking elsewhere. ...

FDI to Vietnam has increased sharply since 2013. One of the main contributors, Samsung, is said to have invested about $ 17 billion in Vietnam since 2008. for example, a plentiful supply of young labor has helped attract FDI from other countries, of which Japan is a major new investor in Vietnam's energy industry.

However, FDI is not always easy. When Vietnam joined the World Trade Organization (WTO) in 2007, it initially followed a similar approach taken by a number of neighboring countries and encouraged state-owned enterprises to compete with state-owned enterprises with foreign investment. Competition for FDI in ASEAN will continue, and while some might argue that its geographic location close to China and Vietnam's 95 million young labor force have added advantages to Vietnam. The attractiveness of a stable political environment cannot be underestimated. Thailand, the Philippines, Malaysia and Indonesia have experienced political turmoil and instability in recent years, and it would be good to look at Vietnam to understand the importance of internal stability.

The sustained growth trend in recent years can be seen as an important prerequisite for an increase in FDI inflows in 2020. In fact, Vietnam has a lot of room to improve its performance further. Purposes of attracting FDI:

First, in recent years, the trend of foreign direct investment in Asia has changed, moving from China (currently the world leader in attracting foreign direct investment) to other countries, and Vietnam is a highly valued country. in area; considered a potential location for multinational corporations. In particular, under the current conditions, the trade war between China and the United States has crossed the borders of the two countries, greatly affecting the global economy. The trade war between the United States and China has damaged many industries in which the tech sector has been hit hard. This is forcing tech companies to divert investment and reduce dependence on China.

Second, the scope for attracting additional FDI is huge, according to a report published by UNCTAD, with $ 14.5 billion in FDI realized in 2015, FDI inflows to Vietnam accounted for only more than 1% of total FDI. investment. Global.

Third, Vietnam initially participates in new generation free trade agreements, the removal of tariff barriers will facilitate bilateral trade between our country and developed countries such as the United States, Germany and the UK. , France, ... This is a good opportunity to positively influence FDI inflows from major economies to Vietnam. Vietnam's cooperation with the European Union (EU) is developing positively and comprehensively. In particular, the European Parliament has approved two agreements, including Vietnam and the EU Free Trade Agreement (EVFTA).