33 years with more than 33,000 FDI projects
According to the Deputy Prime Minister, since 1987, along with the process of renewing and opening up the economy, the Law on Foreign Investment has been enacted. Over the past 3 times of FDI investment, the foreign-invested sector has been present in many important industries and fields and contributed significantly to the overall socio-economic development of the country.
First wave in the years 1990-1992; the second wave in the 2000s with the U.S.-Vietnam Bilateral Trade Agreement was signed and the third wave with the number of FDI really exploded after Vietnam joined the WTO in 2006 and deepened regional and international integration.
As of December 2020, over 33 years of developing and attracting FDI, there were 33,070 FDI projects with registered capital of more than $ 384 billion; The realized capital is about 231.86 billion USD, equaling 60.4% of the total valid registered capital.
The FDI sector accounts for a large proportion in the total industrial production value and the total export value of the country; and the revenue to be remitted to the State budget has steadily increased over the years. The foreign investment sector has become one of the most important drivers of Vietnam’s economic growth with a significant increase in the contribution to GDP.
Only for the period 2016-2020, registered capital and realized capital increased sharply compared to the previous period. In particular, in 2020, although the situation is very difficult, investors will continue to believe in Vietnam’s market and investment environment, and expand production and business activities.
“This is a ‘vote’ to support the Government, ministries and localities to continue their efforts to reform and build a modern administrative system, serving the business community to join hands for a prosperous Vietnam”, Deputy Prime Minister Pham Binh Minh emphasized.
However, according to the Deputy Prime Minister, despite important achievements, the foreign investment sector still has some shortcomings and limitations that need to be overcome.
In which, a number of limitations must be mentioned is the low level of connectivity and spread of the FDI sector to the domestic investment sector. Attracting and transferring technology from FDI to the domestic investment sector has not met expectations. Besides, attracting FDI into some priority industries and sectors and from multinational corporations is still limited. Along with that, there is still a phenomenon that some businesses have not strictly followed the law on investment or have not seriously implemented the regulations on environmental protection.
“These shortcomings and shortcomings have been identified. The Government and concerned ministries and branches are implementing many synchronous and drastic solutions to overcome these shortcomings”, Deputy Prime Minister emphasized.
The Deputy Prime Minister said that attracting FDI in the coming time must be more selective, aiming to use quality, efficiency, technology and environmental protection as the main evaluation criteria, according to the guidelines of Resolution 50. -NQ / TW dated August 20, 2019 by the Politburo. However, Vietnam must adapt, proactively, creatively and catch up with the flow of the 4th wave of FDI which is taking place globally, in the context of fierce FDI competition and the effects of the Covid epidemic. -19.
4 key solutions in attracting FDI by the Government
In order to successfully attract FDI in a new context, the Government will focus on solving four issues, said Deputy Prime Minister.
Firstly, determined to maintain a stable macro-political environment. This is a competitive advantage in the context of the world with many unpredictable changes and the Covid-19 pandemic is still an unpredictable “unknown”.
Second, focus on improving the quality of institutions, legal policies towards enhancing transparency, soundness, safety and efficiency, improving the capacity of State governance and macroeconomic management to Currently, the policy of foreign investment cooperation has priority and selection associated with the goal of improving the competitiveness of the economy, building an independent and autonomous economy.
Encouraging and supporting domestic enterprises to enter into joint ventures, associate, contribute capital, purchase shares and capital contributions of foreign-invested enterprises in projects using high technologies, new technologies or supporting industries … to absorb the market, distribution channels, master the technology, manage and develop national products.
At the same time, finalize preferential policies, encourage investment on the principle associated with the mechanism of inspection and supervision to ensure that foreign investment enterprises comply with investment commitments, comply with criteria and conditions for enjoying incentives.
Create a mechanism to connect investment, trade and tourism promotion activities to improve the efficiency of promotion activities. Improve the effectiveness and efficiency of State management, perfect the mechanism of assignment and decentralization of State management over foreign investment among central agencies and localities.
Third, prioritize investment in infrastructure development, help create smart, efficient connections, reduce transaction costs, improve competitiveness of businesses, investors and the economy. Most is transparency.
In particular, the Government encourages increased investment in education and science and technology, using human foundation and scientific and technological capacity as the engine of growth in the coming decades.
Fourthly, in parallel with attracting investment, localities will organize and support effectively and promptly for investors to build projects with the fastest speed, shortest time, most effective through business environment reform, administrative procedures and especially land and ground clearance procedures. Thereby, reducing investment costs, opportunity costs, strengthening the confidence of investors, and supporting domestic enterprises to grow to link deeper participation in the global production and distribution value chain.
Deputy Prime Minister emphasized that the Government of Vietnam welcomes foreign investors to come to Vietnam to do long-term business, respect the law and make positive contributions to the sustainable development of Vietnam. In the coming time, the FDI sector will continue to be an important driving force, contributing to the realization of Vietnam’s aspirations and prosperity, in which the Government plays the role of a builder and developer.
Source: ndh.vn – Translated by fintel.vn