What do business prepare to the FDI waves in 2023 ?
Over the past several decades, foreign direct investment (FDI) has played an important role in the development of Vietnam’s economy. FDI inflows do not come suddenly but depend greatly on the response and “equipment” of businesses. So let’s take a look at the necessary equipment for businesses to welcome the strong wave of FDI in 2023.
Table Of Contents
- 1 FDI wave in 2023
- 2 Prepare to welcome the FDI wave in 2023
FDI wave in 2023
According to data from the United Nations Conference on Trade and Investment, Vietnam has seen exponential growth in FDI inflows over the past three decades, with capital inflows increasing from $180,000 (4,00,000 USD). 47 billion) in 1990 to $15.7 billion in 2021.
In the first 5 months of 2023, FDI into Vietnam reached nearly 10.86 billion USD, equaling 92.7% over the same period last year. The total newly registered capital is 5.26 billion USD, up 27.8% over the same period in 2022. The efforts to attract the FDI capital of enterprises have brought remarkable results. FDI not only adds capital for development investment but also helps many businesses receive and transfer technology, advanced management experience, expand markets, create more jobs…
In 2023, many challenges such as global economic instability, competition from regional countries, or the global minimum tax program… have negatively impacted FDI inflows into Vietnam. and poses many challenges for businesses with “surfing” goals and strategies on the FDI wave.
Prepare to welcome the FDI wave in 2023
To welcome the wave of FDI investment on a larger scale, more sustainable, and bring higher value, many businesses need to be equipped with necessary conditions, suitable to the context of the times. Here is the necessary equipment for businesses to firmly welcome the FDI wave in 2023
Simplify administrative procedures
The most important element of a favorable investment environment is a transparent and clear legal environment. Therefore, businesses need to accelerate administrative reform, streamlining regulations, by applying more electronic approval processes, and more stable and consistent policies. Improving the transparent and streamlined investment environment not only means attracting new investment sources but also helps maintain and grow existing investment sources.
Improve infrastructure associated with information security
A strong digital infrastructure is especially important for attracting FDI. The digital transformation of FDI enterprises must also be associated with the strategy of information security, especially safety, and security in cyberspace.
FDI enterprises need to develop and strengthen legislation on policies related to the application of digital technology to international services such as electronic tax management, electronic payment, or electronic product model. production and business, to protect the interests and interests of participants and ensure the environment for investment and development of FDI.
Synchronous development of human resources
Many FDI enterprises have gradually smoothly transferred technology, technical processes, and management experience. Many positions were previously held by foreign experts, but now Vietnamese workers are capable of mastering them, contributing to building a team of mature entrepreneurs.
To attract more foreign investors and take advantage of FDI, businesses need to continue to promote training, synchronously develop a skilled workforce, and improve policies and benefits so that they can keep their jobs. feet of workers who have been trained by the enterprise itself.
Digitizing the business model
Instead of traditional factors such as low-cost labor, abundant resources, or large population, today, factors that are focused on FDI investment include the degree of digitization of the destination. , the level of sustainability of the economy, and the social nature of the surrounding environment.
Current models of globalization mainly revolve around the provision of integrated and intangible digital services for businesses and individuals. New business models tend to be based on information technology applications and instant information sharing. Therefore, on the business side, it is necessary to focus on building effective business plans and strategies, in line with the characteristics of digital technology, promoting the creative development of new product and service lines.
Applying the criteria “Green FDI” for sustainable development
Green FDI (Green FDI) can be understood in two aspects: (i) As FDI projects directed in the field of production of environmental goods and services; (ii) Are FDI projects using clean energy or consuming little energy.
With global challenges that could negatively impact FDI inflows into Vietnam this year, businesses should revise their strategies to attract more foreign investment and maintain sustainable development. Accordingly, the “green FDI” criteria need to be met to not only enhance sustainable production but also protect the environment, and fulfill the 2050 climate goals.
In 2023 and in the not-too-distant future, FDI inflows will continue to play an important role in Vietnam’s economic development. The necessary equipment in attracting FDI flows, as well as solutions to further improve the efficiency of exploiting the benefits brought by this capital flow, not only help the development of enterprises but also contribute to the development of enterprises, accomplish the goal of modernization and deep integration with the world economy.
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