Attracting high-quality FDI projects

Deputy Minister of Planning and Investment Dang Huy Dong said that to the end of April 2014, Vietnam attracted 16,323 FDI projects with a total registered capital of about US$237 billion. For more than 25 years, FDI has become an important driving force to accelerate international integration and economic restructuring process towards industrialization and modernization.

In addition, FDI has also become an important financial resource for investment and development, contributing to raising production capacity, innovating technology, strengthening economic management, increasing turnover, changing export structure, improving the international balance of payments, increasing revenues for the state budget, developing high-quality human resources and creating jobs for workers. In particular, FDI has a pervasive effect, contributing to boosting the completion of legal framework, improving the business and investment environment and enhancing competitiveness and business performance of domestic enterprises in order to help Vietnam participate in the global value chain.

In addition to positive results, Deputy Minister Dang Huy Dong admitted that the attraction and disbursement of FDI capital remained limited, reducing pervasive effect of the capital to the economy. Therefore, to ensure efficiency, Vietnam needs to attract high-quality FDI projects.

Foreign Investment Agency Director Do Nhat Hoang said that in order to implement Resolution 103/NQ-CP on improving efficiency in the attraction and disbursement of FDI capital and create powerful changes, Vietnam would focus on attracting high-quality FDI projects using modern and environmentally friendly technologies and large-scale projects in order to create highly competitive products and participate in the global value chain. In addition, Vietnam would attract investment capital in small and medium-sized enterprises and support industries.

Do Nhat Hoang confirmed that Vietnam needed to improve legal framework for investment and develop support industries and high-quality human resources.

In terms of legal framework to create clear business environment for investors, Vietnam is amending the Investment Law and the Enterprise Law. The two amended laws are expected to be approved by the National Assembly in October 2014.

In terms of support industries, according to Resolution 103, the prime minister assigned the Ministry of Industry and Trade to act as a bridge for the development of support industries. The ministry will issue specific regulations and adopt incentive policies for investment projects.

In terms of the development of high-quality human resources, Do Nhat Hoang said that the agency will focus on the quality of human resources rather than cheap labor force.

Source: VEN