This was the conclusion of the Vietnam Association of Foreign-Invested Enterprises (VAFIE) at the second annual report of foreign investment in Vietnam in 2022 on March 10.

Prof. Nguyen Mai, chairman of VAFIE and author of the annual report, said Vietnam was a star in the global supply chain. Projects relating to garments and textiles, footwear and consumption of electricity accounted for a large market share. Vietnam has become a manufacturing hub for electronic products over the last two decades.

The exports and imports of Vietnam set a new record in 2022, unlocking tremendous potential in international trade, the report said.

The report provides an objective and scientific assessment of foreign investment in Vietnam and the country’s overseas investment, in comparison with annual, medium-term, and long-term targets. This gives an all-around view of the foreign direct investment's (FDI) role and impact on Vietnam’s economy and society.

This year’s version consists of three chapters: the global and ASEAN situation, foreign investment in Vietnam, and directions and solutions.

“The highlight of the report is that along with conference of documents of many prestigious international organisations such as the International Monetary Fund, the World Bank, the Asian Development Bank, and the United Nations Conference on Trade and Development, VAFIE surveyed 12 localities attracting and using FDI capital with high socioeconomic efficiency to evaluate, research, draw lessons, and find opportunities and challenges in improving the quality and effectiveness of FDI inflows,” Mai said.

“Besides this, the report is based on survey results conducted by KMPG on over 100 foreign-invested enterprises to have trust and objective opinion,” he said.

The report also proposes solutions to effectively implement FDI attraction policies. Accordingly, the report said that Vietnam needed to improve its policies to attract and use FDI with a focus on green growth, digital transformation and supply chain connectivity of domestic and foreign-invested enterprises.