VN eyes US $16 bln. in FDI attraction in 2012

In 2012, Việt Nam will attach more attention to disbursing FDI capital rather than increasing the amount of registered capital in 2012.

FIA Director General Đỗ Nhật Hoàng said that many foreign investors have kept pouring money to factories in Việt Nam to make use of investment and tax incentives applied for made-in-Việt Nam and made-in-ASEAN products. They are keen to import goods to the country and re-export it after relabeling.

In addition, many tend to maintain or even expand their production despite their claim to have suffered huge losses for years.

They often dodge corporate income tax by importing input materials and machines from their parent companies at high prices and selling products to parent companies cheaply. This will cause a tax dodge and create an unfair business environment in Việt Nam.

If the problem remains unsolved, FDI businesses will also take liberties with Vietnamese laws.

The MPI will try to reduce the number of unsuccessful projects and focus more on industry, construction, high technology, and renewable energy,.

In addition, the MPI will change its way of investment promotion, with a focus on those investors who can meet Việt Nam’s demand, especially for developing “green” technologies.

The Prime Minister has asked the MPI to work with related agencies to build a National Green Growth Strategy Framework for 2011-2020, which is aimed at developing new types of energy and attracting high-tech projects./.