Foreign direct investment from APEC 2017: The new game is about to begin
Today, APEC CEO Summit 2017, gathering about 2,000 businesses of APEC member economies, including many big names, is officially opening. A new game in investment cooperation between Vietnam and APEC member economies is about to begin.
New game
Before the APEC CEO Summit 2017 took place, a question that made the public very curious: which “big bosses” will be present at this important event?
Deputy Minister of Foreign Affairs Bui Thanh Son said that about 2,000 domestic and foreign enterprises have registered to participate in activities within the framework of APEC. More than 800 senior executives from Asia-Pacific region will join APEC CEO Summit 2017.
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| Manufacture of mobile phones at Samsung factory, Thai Nguyen - an investor from APEC. |
And the "bosses" to Vietnam have also appeared, from Elon Musk, founder of Tesla Motors; Sheryl Sandberg - CEO of Facebook; Liam Mallon, chairman of ExxonMobil Development ... to AIA chief investment officer Mark Konyn, and Walmart International's Vice President of Global Leverage, Scott Price.
There are also leaders of the world's leading brands, such as DHL, Johnson & Johnson, FedEx Express ... and start-ups which are changing the “global game” like Rappler, OFO, Malong, Air BnB ...
It is not difficult to recognize, many of these, are planning to invest, do business in Vietnam. ExxonMobil, for example, is expecting a $10 billion project in Vietnam. Walmart plans to enter the Vietnamese retail market. FedEx is similar ...
After the APEC CEO Summit 2017, it is hoped that there will be more cooperation, bringing billion-dollar investment into Vietnam from APEC member economies. A new game can start in not just traditional investment fields such as processing, manufacturing, real estate ... but also new areas to meet the flow of the fourth industrial revolution. On November 6th, just before the APEC CEO Summit 2017, Chinese billionaire Jack Ma came to Vietnam and "blow a new breath" into the market of e-commerce, online payment of Vietnam.
In fact, when the APEC Year 2017 officially began, with Vietnam being the host, many experts said that this will be a "golden opportunity" for Vietnam to continue to attract the investment of APEC members. That is happening. In the past 10 months, APEC member economies have registered $24 billion in investment in Vietnam, accounting for 85% of total foreign investment in Vietnam. After APEC 2017, it is forecasted that this capital flow into Vietnam will be even bigger, because after APEC 2006, Vietnam has seen big waves of investment into Vietnam.
Optimizing APEC investment returns
Although in 1998, Vietnam officially joined APEC, it can be said that 30 years of attracting FDI have seen the footprints of APEC member economies. Most of the founding members of APEC in November 1989, such as Japan, the United States, Thailand, South Korea, Malaysia, Singapore ... are all partners in Vietnam in the first place. Vietnam is open to attract foreign investment.
These investors contributed to the first wave of FDI in Vietnam (1991-1995), including the second wave of FDI (beginning in 2005), after Vietnam officially became member of APEC in 1998, and the third wave.
According to data from the Foreign Investment Agency (Ministry of Planning and Investment) up to 20/10/2017, except Peru and Papua New Guinea, the rest of APEC members have had investment registered in Vietnam, with over US $246.3 billion, accounting for 78.6% of total FDI into Vietnam over the past 30 years (about US $313 billion).
Interestingly, according to statistics from the Foreign Investment Agency, the top ten foreign investors in Vietnam, except for BritishVirginIslands – ranks the fifth - the remaining nine are of APEC members, such as Korea, Japan, Singapore, China, the United States ... These are all important strategic investors in Vietnam, with total investment of over $237.5 billion, accounting for more than 96.5% of total investment capital of APEC and accounting for nearly 76% of total FDI into Vietnam.
Not just the top in terms of capital, but according to the Foreign Investment Agency (Ministry of Planning and Investment), many large-scale FDI projects of APEC members have contributed significantly to socio-economic development of Vietnam, for example, Samsung, South Korea, Intel, USA, Honda, Sembcorp,…
Professor Nguyen Mai, former Vice Chairman of the State Committee for Cooperation and Investment, repeatedly emphasized that FDI in general and FDI from APEC member economies in particular contributed significantly to the formation of many key economic sectors, from mining, oil refining, automobile, motorbike, electronics, to cement, steel, food, cattle feed ... This investment flow is becoming a growth driver for Vietnam.
However, after 30 years of FDI attraction, it is time for Vietnam to adopt a new strategy in attracting FDI to optimize the benefits of this flow of capital. Capital flows from APEC are not exceptional, as most of APEC's members are leading economies, technologically advanced and modern. Taking advantage of this opportunity, Vietnam will be easier to set foot in the new global value chain.
(According to baodautu.vn)
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