Vietnam needs to create new-generation policies to lure foreign investment not only in production but also in other fields such as finance, research and development (R&D), according to representatives of international organizations at a conference on refining policies on FDI attraction. The February 14 event was chaired by Deputy Prime Minister Vuong Dinh Hue in the southern province of Binh Duong.
Vietnam is one of the 12 most successful countries in the world in terms of FDI attraction. However, some problems have arisen 30 years after the country first began seeking FDI.
At a recent conference on refining policies on FDI attraction, Kyle Kelhofer, International Finance Corporation (IFC) Country Manager for Vietnam, Laos and Cambodia said FDI in Vietnam is focused on production industries but not on such high value-added fields as finance and R&D. Once the cost advantage for FDI attraction is eroded, Vietnam will need new-generation policies to lure foreign investment.
Former Minister of the Small and Medium Business Administration of the Republic of Korea, Young Sup-joo, said Vietnamese firms should forge partnerships with foreign enterprises in different sectors to expand regional and global markets.
Deputy Chairman of the Ho Chi Minh City People’s Committee Le Thanh Liem affirmed that mergers and acquisitions, and FDI projects have effectively restructured sectors in the southern city over the past few years. He suggested that foreign enterprises that deliver on commitments should enjoy incentives, while better financial policies should be adopted to attract multinational corporations and research and development centers.
Deputy Prime Minister Vuong Dinh Hue said conference participants’ suggestions are important for the Ministry of Planning and Investment to improve the policy-refining project for submission to the Politburo. He stressed that Vietnam needs to attract high technology and a high quality labor force, take the initiative in FDI attraction and give local authorities more power to attract multinational corporations and quality investment.
Hue affirmed that the Vietnamese Government has consistently refined mechanisms and policies to lure more FDI, adding that such investment is an active part of the Vietnamese economy and that Vietnam will cooperate with FDI firms.
Deputy Prime Minister Vuong Dinh Hue said Vietnam has set a target of creating a favorable business environment that meets the development needs of a digital economy, benefits all economic sectors and facilitates connectivity between foreign-invested and domestic enterprises.