Foreign Direct Investment from APEC: The New Game is about to Begin

Foreign Direct Investment from APEC: The New Game is about to Begin

Today (8/11), APEC Enterprise Leadership Summit (APEC CEO Summit 2017), gathering about 2,000 businesses of APEC member economies, including many big names take part in 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, what kind of "giants" will be present at this important event?

Standing Deputy Minister of Foreign Affairs Bui Thanh Son said that about 2,000 domestic and foreign enterprises registered to participate in activities within the framework of APEC Summit Week. More than 800 senior executive officers from Asia-Pacific Corporations and Enterprises will join APEC CEO Summit 2017.

Manufacture of mobile phones at Samsung Thai Nguyen factory - an investor from APEC.

Manufacture of mobile phones at Samsung Thai Nguyen factory - an investor from APEC.

And the face of "giants" to Vietnam has also appeared. From Elon Musk, founder of Tesla Motors; Sheryl Sandberg - CEO of Facebook; Liam Mallon, chairman of ExxonMobil Development Company to CEO Investment AIA Group Mark Konyn and Vice President of Global Leverage - Walmart International, Scott Price...

There are also leaders of the world's leading brands, such as DHL, Johnson & Johnson, FedEx Express ... and start-ups are changing the global game like Rappler, OFO, Malong, Air BnB .. .

It is not difficult to recognize, many of these are planning to invest and do business in Vietnam. ExxonMobil, for example, is expecting a US$ 10 billion project in Vietnam. Walmart plans to enter the Vietnamese retail market. FedEx is the same...

After event of the APEC CEO Summit 2017, it hopefully will have more cooperative shake hands, bringing billion-dollar investments into Vietnam from APEC member economies. A new game can start not only traditional investment fields such as processing, manufacturing, real estate ... but also new areas to meet the flow of the 4th industrial revolution. On November 6, just before event of the APEC CEO Summit 2017, Chinese billionaire Jack Ma came to Vietnam and "blow a new breath" into e-commerce market, online payment of Vietnam.

In fact, when the APEC Year 2017 officially begins, as capacity ò of host country, many economic 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 investment of US$ 24 billion in Vietnam, accounting for 85% of total foreign direct investment in Vietnam. After APEC 2017, it is forecasted that this capital flow into Vietnam will be even bigger, because after APEC 2006 event, Vietnam had had a big waves of investment into Vietnam.

Optimizing APEC investment returns

Although Vietnam officially joined APEC in 1998, it can be said that 30 years of attracting FDI thanks to the presence of APEC member economies. Because most of the founding members of APEC in November 1989, such as Japan, the United States, Thailand, South Korea, Malaysia, Singapore ... are investment partners in Vietnam in early stage when Vietnam officially opened to attract foreign direct investment.

It is the 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 a member of APEC in 1998 and even the third one.

According to data from the Foreign Investment Agency (Ministry of Planning and Investment) to 20/10/2017, except Peru, Papua New Guinea has not invested in Vietnam, the rest of APEC members have registered investment over US$ 246.3 billion, accounting for 78.6% of total FDI into Vietnam over the past 30 years (about US$ 313 billion).

Noticeably, according to statistics from the Foreign Investment Agency, the top ten foreign investors in Vietnam, except for BritishVirginIslands - in the fifth position - are the remaining nine are members of APEC such as Korea, Japan, Singapore, China, the United States ... These are all important strategic investors in Vietnam, with total investment capital of over US$ 237.5 billion, accounting for over 96.5% of the total APEC, 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 giants (South Korea), Intel (USA), Honda (Japanese), Sembcorp (Singapore), Microsoft (USA),etc.

However, after 30 years of FDI attraction, it is time for Vietnam to design a new strategy in attracting FDI to optimize the benefits of this flow of capital. as most of APEC's members are leading economies in technologically advanced and modern management. Taking advantage of this opportunity, Vietnam will be easier to set foot in the new global value chain.

Source: Investment Newspaper - By Tony Tuyen

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