Conference discusses future outlook of FDI attraction in Vietnam

Friday, 2018-12-21 16:05:55
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The conference on the future outlook of FDI attraction in Vietnam (Photo: VGP)
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NDO - Deputy Prime Minister Trinh Dinh Dung chaired a conference on December 21, which looked at the outlook of foreign direct investment (FDI) attraction and implementation in the future.

According to the Ministry of Planning and Investment (MPI), foreign investment is not only a major resource in Vietnam’s economic development but is also a driver for economic reform, which has helped to improve the country’s business climate.

As of November 2018, there were 27,000 active FDI projects in Vietnam with pledges totalling US$337.8 billion, more than half of which has been disbursed.

Last year, the foreign sector contributed over US$8 billion to the state budget, while creating 3.6 million direct jobs and 5-6 million indirect jobs.

However, the connection between foreign and domestic enterprises is relatively weak with technology transfer failing to meet expectations.

Furthermore investment in infrastructure and agriculture is meagre though prioritised by the government.

A number of FDI projects have yet to fully comply with environmental regulations, while others are engaged in transfer pricing, causing losses to the state budget.

The legal system concerning foreign investment has been constantly updated but still lacks consistency and stability, thus undermining the confidence of foreign investors.

Amid new global, regional and domestic changes with plenty of both opportunities and challenges, it is necessary for Vietnam to further fine-tune its policies and adjust its FDI attraction and implementation strategy.

At the request of the Politburo, the government has directed the MPI to formulate a scheme on enhancing the quality and effectiveness of FDI attraction and use until 2030.

The opinions discussed at this conference will be collected in order to refine this highly important scheme.