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Investment

Last updated: Wednesday, December 19, 2018

 

Vietnam among World's Safest Destinations for Investors

Posted: Thursday, February 08, 2018


The success of APEC 2017 and a series of foreign affairs and investment promotions last year contributed to promoting Vietnam’s image as one of the safest investment destinations in the world. 2018, with the determination for a Government of integrity, action and service, is expected to see breakthrough development of the economy in general and the business community in particular. On the occasion of the Lunar New Year 2018 - Year of the Dog, Vietnam Business Forum Magazine has an interview with Politburo Member and Deputy Prime Minister Vuong Dinh Hue on local efforts and initiatives to promote investment and improve business and investment environment. Le Sang reports.

Mr Deputy Prime Minister, the overall result of investment attraction has obviously come from provinces and cities’ initiatives and innovations in investment promotion in recent years. How do you assess this?
In the past time, investment promotions have been carried out by localities across the country and also in foreign countries followed by working visits by our Party and State leaders. To realise the investment attraction policy of the Government, most ministries, branches and localities have paid attention to developing annual investment promotion programmes and actively and creatively pushing forward these activities to draw investment capital, especially foreign direct investment (FDI) for socioeconomic development, importantly helping build and popularise the fine image of our country and people in general and of localities that attract investment capital in particular with favourable and friendly business environment, clear and transparent administrative procedures, generous investment incentives, safe investment locations.

In general, investment promotions are in line with our socioeconomic development strategies and socioeconomic development plans of the country, the industry and each locality. These activities have been implemented in a relatively comprehensive manner, from building plans and conducting market research to establishing promotion channels with industry organisations and associations and investment promotion agencies of foreign investment partners. Most localities have integrated investment promotion with trade and tourism promotion; actively participated in investment promotion programmes hosted by ministries and central branches. Due to limited budget conditions, localities have encouraged and made good use of social funds to carry out communications on investment promotion both at home and abroad.

Since the new tenure of the Government and the National Assembly, with the support of the Central Government and leaders of the Party, the National Assembly and the Government, localities have successfully organised one regional and 28 provincial investment promotion conferences, as well as investment promotion events following official visits of our Party and State leaders to foreign nations. The Government has also successfully opened two government - business conferences and numerous conferences and forums with development partners. These conferences and forums have provided the opportunity to introduce the image of Vietnam - a country with great potential and advantages in attracting investment, one of the safest investment locations in the world, and a country where there is a government of integrity, action and service for people and businesses.

Registered projects and pledged investment value at investment promotion events are huge in figures. Many licensed investment projects were quickly carried out and put operation to practically serve local socioeconomic development and national development as a whole. Many localities have renovated their forms and methods of investment promotion, particularly in approaching strategic investors who have powerful capital potential and technological prowess. Typical investment promotion models include the combination of authorities, investors and consultants, or the single-window investment promotion form.

At the local level, like the business environment, the performance of government is always seen as a very important factor to investment decisions by investors. Given the same development level and natural and social conditions, a locality with better Provincial Competitiveness Index (PCI) and Provincial Governance and Public Administration Performance Index (PAPI) will interest investors more. Last year, some top 2016 PCI-ranked localities like Dong Thap and Quang Nam provinces hosted investment promotion conferences. At the conference held by Dong Thap province on December 19, 2017, investors received 19 investment certificates and signed 23 memorandums of understanding on cooperation and investment for a total pledged value of nearly VND24 trillion (over US$1 billion). At the investment promotion event opened by Quang Nam province on March 26, 2017, investors got 28 investment certificates and signed two memorandums of understanding on cooperation and investment with a total registered capital of VND354 trillion (US$15.5 billion).

Some localities like Quang Ninh province did not open investment promotion conferences in 2017, though it had 2,240 companies established with a combined registered capital of VND12,866 billion, bringing its active enterprises to 14,900 in total. Many big projects have been continued to be deployed, for example, infrastructure construction projects in Van Don Special Administrative - Economic Zone, Ha Long - Hai Phong Highway and Bach Dang Bridge. These projects together with others helped the province to achieve a gross regional domestic product (GRDP) growth of 10.2 per cent. The results show that holding conferences is just one of investment promotion activities and this work must be done regularly in many different ways to seize every opportunity to call new investment capital, and most importantly speed up administrative reform, prevent corruption, create a favourable and transparent business and investment environment for investors.

To make local investment promotions more intensive and more effective, do you have any guidance or recommendations for localities to this effect?
As I mentioned above, investment promotion conferences are just one of many ways and activities to attract investors by clearly introducing local potential, advantages and investment opportunities. But, it is important that localities must be aware of accelerating administrative reform, clarifying policies from building to executing policies, and receiving and explaining clearly and fully comments and recommendations from citizens and enterprises, while upholding the supervisory role of social and political organisations and communities in implementing policies. This will create a favourable, fair and transparent business environment, select capable investors, create more jobs, improve social security and raise people's livelihoods. Bettering the investment environment must be seen as a central task in investment promotion. Authorities at all levels should focus on facilitating licensed projects to be deployed quickly and favourably and provide fast, accurate and transparent information for investors who seek investment opportunities.

Investment promotion must follow closely development plans and programmes to avoid dispersing resources; target strategic partners and key foreign countries to attract foreign investors with advanced technologies, environment-friendly technologies and huge value-added generation; stimulate and utilise the ripple effect of big projects and investors to draw new investors; focus on high-quality and large-scale resources; enhance professionalism and quality of investment promotion activities; diversify forms of investment promotion, both direct and indirect and both local and external; and unify local investment promotion activities in order to raise effectiveness.








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