FDI flows to invest in Vietnam to support uplifting Vietnamese life's quantity
Following official data shows, until this august, Foreign direct investment (FDI) disbursement was estimated at USD 12,8 billion, a year-on-year of 10.5 percent.
Meanwhile, total FDI inflows to Viet Nam are nearly USD16.8 billion as of August 20, reported the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
Positive outlook of FDI flow to invest in Vietnam
Although FDI's potential to invest in Vietnam has yet to recover after the disruptions of COVID-19, additional investments in existing projects and share purchases are rebounding strongly, with the capital added to USD7.5 billion and USD2.9 billion, respectively. As a result, the disbursed volume of FDI was estimated at USD10.06 billion, a year-on-year increase of 8.9 percent.
Director of the General Statistics Office Nguyen Thi Huong shared, "We still see a positive trend in detailed data. Foreign investors continued to invest in Vietnam because of our safe and attractive business environment." The Ministry of Planning and Investment (MPI) has suggested fine-tuning the mechanism to facilitate foreign investors and introducing policies to attract quality FDI to invest in Vietnam to take the opportunities.
Mr. Ngo Dang Khoa, Country Head of Markets and Securities Services, HSBC Vietnam, shared that FDI continues to drive Vietnam's economic success. The country is among the top two ASEAN FDI recipients relative to GDP, highlighting its increasing attractiveness. Moreover, in recent years, Vietnam has become a rising star in global supply chains, gaining substantial global market share in sectors and attracting stable FDI inflows to invest in Vietnam.
Vietnam maintained positive growth during Covid-19 time. The country was one of the world's few countries to record growth in two consecutive years since the pandemic. The pandemic has affected the economy and Vietnamese habits and made digital transformation an inevitable trend. Many experts predict that the critical factor which could unleash a new wave of funding to invest in Vietnam will be the digital transformation of top-tier enterprises from all sectors.
In retail and consumer goods industries, digital transformation helps fuel most operations and drives efficiency, innovation, and empowerment for businesses. Typically, SK Korea Group, with many significant investments in Vietnam, poured USD470 million into buying 9.4% of Masan Group's shares. In addition, a group of investors, including Alibaba Group and Baring Private Equity Asia (BPEA), invested USD400 million in acquiring a 5.5 percent stake in The CrownX, a Masan integrated consumer retail arm consolidating its interests in Masan Consumer Holdings and WinCommerce. The Group has also made significant transformations with digital transformation, helping businesses realize their ambitions to serve 100 million Vietnamese users and attract more FDI organizations to invest in Vietnam.
The top challenge is integrating sustainability into digital transformation to improve customer experiences. With the synergy of resources from Masan's consumer-retail ecosystem, Masan expects to continue its current growth momentum while attracting more and more foreign capital inflows to invest in Vietnam's market.
Business efforts in digital transformation are not only the fuel to promote the consumer goods and retail industries but also an important lever to contribute to the overall growth of the Vietnamese economy.
The innovative digital adaptations create growth potential for consumer conglomerate
Along with the development of technology, the internet, and the digital economy, consumers' demands are constantly changing, and they always want the best. Therefore, consumer enterprises need to accelerate digital transformation to adapt to the new demands of consumers.
Masan Group focuses on adopting technology and artificial intelligence across its daily operations and consumer experience to become a consumer-tech ecosystem. This Group cooperates with Trust Social to help accelerate Masan's transformation into an offline-to-online consumer and technology ecosystem. Along with using AI and ML and collaborating with banking partners (Techcombank) to provide credit services, Masan also focuses on developing the ecosystem to understand each user's transaction and customize offers based on their purchase history.
CEO of Masan Group shared, "The most important is to build a strong team, not necessarily the best technology experts, but a team of people who understand technology to provide effective solutions and have a consumer-centric mindset in line with Masan's overall strategy to bring good value to consumers."
The Group can apply AI and fintech solutions to deliver a superior customer experience in retail and consumption. And will the digital transformation help Masan accelerate the race for retail market share in Vietnam?
Vietnamese consumers are getting younger, diversifying their digital consumption, living a more digital lifestyle, and demanding more attention, convenience, and accessibility. So besides applying technology, Masan is expanding its products and services to meet changing consumer expectations.
Masan has a vast database of consumer transactions as it currently owns the largest consumer and retail ecosystem. In Masan's serving Vietnamese people journey and daily interactions with customers. The Group has constantly tried to find solutions to meet its versatile demands. Masan has launched many consumer innovations to reshape the consumer industry to help Vietnamese people pay less for essential products and services, at the same time simultaneously increasing their quality of life.
In parallel with the nationwide expansion of retail stores, Masan aims to serve consumers' financial needs by providing contactless payment, saving, investment, and loan products based on AI and ML tools when hopping at the WinCommerce systems.
In 2022, Masan will digitalize all its platforms. This transformation not only reduced operational costs by 10%, but leveraged AI and ML to enhance operations. Masan has transformed itself from a retail consumer group to a digital platform to satisfy customers' unmet demands. Besides applying technology, Masan is expanding its products and services to meet the changing expectations of consumers.
The consumer-retail market can be dominated by accessibility, availability, and convenience, especially for new customers. Thus, Masan has transformed itself from a retail consumer group to a digital consumer platform to satisfy customers' unmet demands. Meanwhile, it also creates opportunities for a series of significant investment funds can invest in Vietnam through Masan's digital transformation strategies.
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