Pick FDI with care: Deputy PM

Deputy Prime Minister Vương Đình Huệ said Việt Nam must be selective in attracting foreign direct investment (FDI) to ensure it’s suitable for the nation’s economic restructuring and development of the private sector.

At a conference of the planning and investment sector held on Saturday in central Khánh Hòa province’s Nha Trang City, Huệ said careful selection of FDIs is pressing for Việt Nam in order to achieve the annual growth target after below-par results in the first quarter.

“FDI should not be attracted at all costs. It’s time for Việt Nam to be selective,” Huệ said.

Specifically, he said, that Việt Nam should attract FDI projects of high technology, having good governance and contributing to generating jobs and increasing income, as well as promoting the development of the private sector.

Prime Minister Nguyễn Xuân Phúc, speaking at the Ministry of Industry and Trade’s conference held earlier last week, said Viet Nam should learn the lesson of the massive fish deaths caused by pollution from the Taiwanese Hưng Nghiệp Formosa Hà Tĩnh Steel Corporation when seeking FDI and economic development.

Recently, the Ministry of Planning and Investment issued a directive on inspecting and evaluating FDIs, which aimed to ensure the operation of FDI projects in compliance with laws and the country’s socio-economic development targets.

’Drastic measures needed’

Huệ also stressed the importance of improving the business climate and promoting the development of the private sector, especially of  small and medium-sized enterprises, which are at the heart of Việt Nam’s economic growth.

“Recovery of businesses will be a major driver for growth in the remaining months of the year and in the future,” Nguyễn Chí Dũng, Minister of Planning and Investment said, adding that the ministry would focus on removing obstacles for business.

Dũng stressed that maintaining macroeconomic stability would be key, also, and controlling inflation would be given priority.

Dũng said the ministry would promote the disbursement of public investment and FDI, which would significantly accelerate economic growth.

Statistics of the Foreign Investment Agency show that registered FDI totaled more than US$11.2 billion in the first half of this year, 105.4 per cent higher than in the same period last year. More than $7.2 billion were disbursed, up 15.1 per cent.

The ministry said anticipated increases in FDI were among the favourable factors expected  to promote growth in the second half of this year.

Achieving this year’s growth target was critical as this would become a foundation for the implementation of the nation’s 2016-20 plan.

To achieve the Government’s 6.7 per cent growth target, gross domestic product (GDP) growth must be 7.6 per cent in the second half of the year– two percentage points higher than the first half’s result (5.52 per cent). “This is a heavy task, which require a combination of drastic measures to be taken,” Dũng stressed.

Dũng said that with the Government’s determination and drastic measures in easing difficulties for businesses, the full-year economic target would be within reach.

There is room for growth in the second half of the year, especially in the manufacturing and processing industry fuelled by the operation of new large projects, and in agricultural production expected to expand at 1.8-2 per cent, according to the ministry

Source: VNS