Vietnam to Offer More Incentives to Foreign Investors
Vietnam expects to attract more foreign investors by allowing them, for the first time, to buy shares of local businesses, establish joint-stock companies and issue bonds, said a senior official June 16.
With these incentives, foreign investors will have more opportunities to mobilize investments both in Vietnam and abroad, said Phan Huu Thang, head of the Foreign Investment Department under the Ministry of Planning and Investment (MPI), to media Thursday.
He also unveiled the ministry's plan to allow foreign investors to join in partner companies which offer services that require professional expertise such as legal and financial consultation and auditing.
“This form of investment is very common in the world. Consortiums may be allowed to establish companies to manage their investments and support their projects here,” he added.
These policies, which are in the making, might help tap the potential of trans-national groups and reduce unnecessary costs, said the official.
Vietnam targets to attract between US$4.5-5 billion worth of foreign direct investment (FDI) capital this year.
According to a recent report of the Foreign Investment Agency, the country has this year licensed 350 new FDI projects with combined registered investment capital of over US$1.9 billion, up 24.6 per cent and 130 per cent against the year-earlier period, respectively.
Most of the new projects invest in the service sector and are owned by Asian investors. Hanoi, Dong Nai, Ho Chi Minh City and Binh Duong will account for some 62 per cent of the fresh FDI capital.
Vietnam is also expected to allow 222 existing FDI projects to raise their investment capital by US$867 million in the January-June period, bringing up the total FDI capital the country attracts in the first half of this year to US$2.7 billion, a year-on-year increase of 70 per cent, according to the report.
FDI firms in Vietnam have this year put US$1.5 billion of investment capital into operation, up 8 per cent year-on-year. They are expected to secure total revenues of US$11.3 billion in the first half of this year, up 32.9 per cent. Of the total revenues, US$5.11 billion will come from export.
The report also predicts that FDI companies in Vietnam will spend up to US$6.66 billion on imports in the first half of this year, an increase of 34.7 per cent against the same period last year. They are expected to pay US$442 million worth of taxes to the State budget in the period, up 20 per cent.
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