IMPROVE THE INVESTMENT ENVIRONMENT TO STRENGTHEN ATTRACT FOREIGN INVESTMENT IN VIETNAM

Abstract

The World Bank (WB) has forecast the lowest growth outlook for the global market since 1993 with a growth rate of 1.7% (except for the two years of the Covid 19 pandemic). This reflects the difficult situation of the world economy when facing the consequences of the global COVID 19 epidemic, strategic competition between major countries, geopolitical conflicts in Europe, and the Russia - Ukraine war and the recent outbreak of conflict in the Middle East between Israel and Harmas. These events have made the economic recession more and more severe, pushing the risk of increased inflation, supply chain disruption, and the risk of food shortage globally. Vietnam is one of the few countries with growth in the years affected by the pandemic, however the growth rate in 2023 does not meet expectations (6.5%) and Inflation is at risk of increasing. However, attracting foreign investment is one of the important momentium forces to help the economy quickly restore growth. Exports (including crude oil) of the region foreign investment (FDI) in 2022 reached more than 275.9 billion USD, an increase of 11.8% compared to 2021, accounting for 74.3% of the country's total export turnover. Imports reached more than 233.2 billion USD, an increase of 6.7% compared to 2021, accounting for 65% of the country's total import turnover. The FDI sector had a trade surplus of more than 42.7 billion USD, including crude oil, while the domestic business sector had a trade deficit of more than 30.3 billion USD. The FDI sector's contribution to the state budget reached about 21.2 billion USD, an increase of 21.4% compared to 2021, accounting for 28% of total state budget revenue, an increase of more than 2.2% compared to the proportion of contributions to the state budget. total budget revenue in 2021. With such a crucial role, foreign investment capital tended to decrease in 2022, total foreign investment capital (including new registration, adjustment and capital contribution and share purchase) reached nearly 29.3 billion USD, down 24.6% over the same period in 2021. Facing both domestic and international challenges, Vietnam has many solutions to continue improving the investment environment both institutions. mechanisms as well as the business environment to continue to be an attractive destination for foreign investors.