FDI is a savier for Vietnam Recovery

1. A Current and Future-State Analysis of
Vietnam’s Foreign Direct Investment (FDI)
Landscape

2. Introduction
Current State Analysis
Future State Analysis
Recommendations
Risks & Mitigations
Conclusion
Works Cited
Overview

3. This presentation will lay out the FDI landscape in
Vietnam, discuss key opportunities, and illustrate
recommendations for North American investment
over the next several years.
Introduction

4. Current State
Analysis

5. Infrastructure
● Infrastructure investment
presents one of the largest
investment opportunities for
investors especially the
burgeoning renewable energy
sector
● Continued infrastructure
investment is crucial to sustain
the growth of other sectors of
the economy

6. Technology
● Vietnam’s demographics coupled with
high acceptance of western education
and technology makes this a promising
sector for foreign investment
● COVID-19 has driven e-commerce and
education tech growth due to lack of in
person capabilities and will continue to
be one of the factors enabling future
growth
● Vietnam is also in the process of
creating a cashless society via a digital
Dong payment system endorsed by the
central bank in Vietnam.
● Total FDI in the technology sector for
2019 amounted to over US $6.4 billion

7. Manufacturing/
Processing
● The growth of the
manufacturing sector has been
one of the key drivers of
Vietnam's economic rise
● Opportunities combined with
the government’s commitment
to resolving weaknesses can
guarantee continued growth of
the industry

8. Manufacturing/Processing
Vietnam’s Top Exporting Markets
Electronics / components
Wood Processing Clothing / Textile

9. Manufacturing/Processing
Electronics / components
Wood Processing
Vietnam’s Top Importing Markets
Clothing / Textile

10. Agriculture
● Vietnam’s advantageous
positioning along the Mekong and
Red River deltas and rich land
position it well as a continued
source for FDI
● Vietnam should ensure that it is
taking proactive measures
towards protecting its
environment, particularly in
response to sand mining and
dams along the deltas, as well as
climate change and the usage of
toxic chemicals in agriculture
● In 2020, the Agricultural sector
accounted 15% of Vietnam’s GDP

11. Agriculture
● The export market share has
continuously been
strengthened and expanded
● Vietnam has tried to develop
Emerging markets, niches
(Middle East, Africa, Eastern
Europe) methodically and in a
complementary manner to key
markets
● As of 2018, Vietnam exported
agri-products to Canada with a
net value of US$ 449 million

12. Future State
Analysis

13. Recommendations
Canada
• Expand
Canadian pork
exports to
Vietnam
• Export Canadian
timber to Vietnam
Both
• Export Vietnamese
flowers
• Expand Vietnam’s
seafood &
aquaculture exports
United States
• Tech jobs + TVET
investments
More shipping container
availability (will also lower
price)
Lowered duties on
pork imports
Expand allowable
timeframe for chilled
pork
Formalized marketing,
production, & distribution
plan for timber
Improvements Needed:

14. Vietnam & U.S. Trade
Exhibit Source:
CRSReports.C
ongress.Gov
Exhibit Source:
Vietnam-
Briefing
Exhibit Source: Census.Gov

15. Vietnam & Canada Trade
Exhibit Source: Vietnam-briefing
Exhibit Source: TradingEconomics

16. Debt & deficits
Ease of doing
business &
transparency
Environmental
protection
Labor productivity
& investments
Diplomatic
relations
COVID-19
Risks &
Mitigations

17. Positive and proactive approach from
the Vietnamese government (~2,900
cases, under 400 active cases, and
35 deaths)
Oxford-AstraZeneca vaccine approved in
January 2021
Construction, manufacturing, and utilities
boosted by trade agreements
Services sectors suffered the most
due to the pandemic
COVID-19

18. Conclusion
• Historic Q1 FDI inflow of US$ 9.3 billion in Q1 of 2021
• Huge impact for North America due to the US-China trade
wars and China +1 policies
• Vietnam is a strong candidate for investments in Asia driven
by investor friendly policies, cost efficiency, and a stable
economic and political outlook
Road infrastructure Solar energy Wind energy Ports, SEZs, EPZs
Technology Agriculture Manufacturing Clothing and textiles

19. Thank You!
For more information or
to receive the complete analysis
Contact:
Ralf.Matthaes@infocusmekong.com
THE AUTHORS
ANDREW HART,
DONG-HA LEE,
LEA MARICH,
MAZAHIR BOOTWALA,
MICHELLE DANTAS,
YASHODHAN AGARWAL

20. Duong, D. T. (2020). Sustainable development for Vietnam agriculture. https://www.e3s-
conferences.org/articles/e3sconf/pdf/2020/35/e3sconf_interagromash2020_01015.pdf
World Bank Group. (n.d.-c). Vietnam Wood Exports by country in US$ Thousand 2017. World
Integrated Trade Solution. Retrieved April 20, 2021, from
https://wits.worldbank.org/CountryProfile/en/Country/VNM/Year/2017/TradeFlow/Export/Part
ner/by-country/Product/44-49_Wood
World Bank Group. (n.d.-b). Vietnam Textiles and Clothing Exports by country and region in US$
Thousand 2017. World Integrated Trade Solution. Retrieved April 20, 2021, from
https://wits.worldbank.org/CountryProfile/en/Country/VNM/Year/2017/TradeFlow/Export/Part
ner/all/Product/50-63_TextCloth
Works Cited

21. • Source for Growth in U.S.-Vietnam Merchandise Trade:
https://crsreports.congress.gov/product/pdf/IF/IF11753
• Source for Vietnam-US Trade: https://www.vietnam-briefing.com/news/why-vietnam-has-
become-promising-alternative-for-us-businesses-in-asia.html/
• Source for 2021 US trade in goods with Vietnam: https://www.census.gov/foreign-
trade/balance/c5520.html
• Source for Canada’s Exports to Vietnam: https://www.vietnam-briefing.com/news/vietnam-
canada-trade-leveraging-cptpp.html/
• Source for Vietnam Exports to Canada: https://tradingeconomics.com/vietnam/exports/Canada
Exhibit
Sources