Cash inflow in FDI enterprises will be managed more closely. It’s the most significant feature in the scheme for improving the management of foreign direct investment flows (FDI) in Vietnam, which has been approved by the Vietnamese Government.
The project has been drafted by the Ministry of Planning and Investment and was submitted to the government with the aim of improving the investment environment, promoting and improving the quality and efficiency of FDI capital, completing the state governing mechanism, as well as the legal framework on the management of FDI flows into Vietnam.
However, the project also sets specific targets to "improve the efficiency of inspection and monitoring of capital flows, in and out, building up a database on FDI flows to respond the requirements of the analysis in a timely and accurate manner, forecasting, policy-making and administration of the foreign exchange market, balance of payments stability, and increasing foreign exchange reserves are reasonable."
With that goal, the Government requested the responsible departments to carry out research on the characteristics and nature of foreign investment flows into Vietnam, including the capital, domestic and foreign loans… and the flow of capital sent abroad by foreign-invested enterprises.
The agencies will also supplement and amend the regulations on investment procedures, transferring money related to FDI flows, as well as the provisions of the borrowing and repayment of foreign invested enterprises.
As the agency managing foreign exchange, the State Bank of Vietnam shall request and coordinate with relevant ministries and agencies to improve the legal basis related to monitoring cash flows of foreign-invested enterprises, including equity cash flow, capital flows and foreign loans.
The agency will also preside over the construction of a monitoring mechanism of total domestic borrowing and foreign borrowing by foreign-invested enterprises, in relation to the total capital of the enterprise and improve the reporting system through credit institutions.
Meanwhile, the Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the relevant ministries and to review, evaluate and improve the legal framework on FDI in Vietnam; chair and coordinate with other ministries, agencies and localities to build inter-sectoral coordination mechanisms in the management of FDI in Vietnam in general and statistical work, supervising FDI flows in particular.
The Finance Ministry is also asked to direct the General Department of Customs to chair and collaborate with the relevant agencies to build a data monitoring system on the import and export of foreign-invested enterprises, FDI flows into Vietnam in the form of contribution of capital goods, machinery and equipment.
At the same time, the agency will also implement solutions to control transferred pricing activities of foreign-invested enterprises in the field of State management function.
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