Economic Sector

Last updated: Tuesday, March 26, 2019


Eight Groups of Solutions for FDI Attraction to 2030

Posted: Monday, January 07, 2019

The Ministry of Planning and Investment drafted a project to improve institutions and policies and raise FDI quality and performance to 2030. A lot of new orientations and solutions are recommended.

The above information was revealed at the Consultative Conference on Future Outlook of FDI Attraction and Implementation hosted by the Ministry of Planning and Investment in cooperation with the Vinh Phuc Provincial People’s Committee on December 21. Chaired by Deputy Prime Minister Trinh Dinh Dung, the conference attracted nearly 500 participants from ministries, localities, business associations and FDI investors.

New targets
Deputy Minister of Planning and Investment Vu Dai Thang said, with nearly US$340 billion of foreign direct investment (FDI) capital registered over the last 30 years, the FDI sector has become an important part of the economy, a dynamic development engine and a major contributor to Vietnam’s socioeconomic development.

According to the draft project, in the coming period, Vietnam will focus on attracting new-generation FDI capital, drawing FDI fund into new high-tech, advanced and environment-friendly technologies, information technology and telecommunications, advanced electronics, automobile, agricultural machinery, construction equipment, industrial equipment, electrical equipment, supporting industries, R&D, and internet of things (IoT) among others.

At the same time, FDI will be also attracted into industries where Vietnam still has advantages such as garment and textile and leather and footwear but priority is given to stages that create high added value and uses smart, automated production processes.

In each period, priority will be given to key selected industries and fields to launch active investment promotion to make sure that this activity will bring high added values to the economy. Periodical assessment of investment effectiveness and performance will be conducted, based on given criteria, to make necessary appropriate adjustments.

For localities and territories, FDI will be attracted in accordance with the overall planning, national sector planning and regional and local planning to ensure the overall economic, social and environmental efficiency of the region and the whole country.

FDI must be attracted from many markets and partners. Vietnam will effectively make use of relationships with strategic partners, with a focus placed on developed countries and G7 countries. It will actively monitor and assess FDI movement trends into Vietnam from some countries in the region in order to attract investment projects suitable with the orientation. Vietnam will not attract projects using outdated technology and environment-unfriendly technology.

Eight groups of solutions
In order to carry out the above objectives, the draft project proposed eight groups of solutions to be focused in the coming time: Unifying awareness and actions to implement guidelines and policies on FDI; completing favourable institutions and business - investment environment to effectively attract and use FDI; effectively operating markets and opening markets to attract FDI; encouraging, promoting and supporting joint ventures, association and technology transfer between domestic enterprises and FDI enterprises.

The Planning and Investment sector advocates developing high-quality human resources to reposition Vietnam's competitive advantages in FDI attraction; integrating FDI attraction and implementation with efficient use of natural resources and environmental protection; adjusting policies on FDI attraction and implementation toward international commitments; improving the leadership capacity of authorities from central to local levels, promoting the ownership of investors, businesses and people in FDI attraction and implementation.

FDI attraction is a consistent policy of the Party and State of Vietnam. “The foreign investment sector has contributed to promoting technological innovation and increasing labour productivity. Besides, it has helped improve product quality, create new jobs, support changing the economic structure and is a catalyst factor for Vietnam's economy to grow faster,” Deputy Prime Minister Trinh Dinh Dung said.

In the coming time, in order to attract foreign investment, localities need to well prepare conditions for construction planning and industrial zone planning coupled with urban and housing development planning and services. Besides, they need to focus on infrastructure investment, connectivity with the rest of the region and the nation, and infrastructure development investment inside industrial zones. They need to ensure benefits of people giving up their land for industrial zones. Central and local authorities need to further promote administrative procedure reform; improve the operating quality of the government apparatus; and ensure security, order, political and social conditions in places where foreign investment is present.

At the same time, the Deputy Prime Minister requested that foreign investors carry out investment and production according to their commitments and Vietnamese laws; pay attention to investment for new technology research and development, and cooperate with Vietnamese enterprises to develop supporting industries. Foreign enterprises, when investing in Vietnam, must associate their commercial production with social development, especially housing and services for their employees, and strictly protect the environment.

Nguyen Thanh

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