Shaping new MINDSET on foreign investment underway

Infographics: Remarkable FDI inflows attributed to open trade policy

According to the Ministry of Planning and Investment, Viet Nam lured approximately 27,000 foreign direct investment (FDI) projects with total registered capital accumulating to above US$340 billion by the end of 2018.

Foreign investment flows from 130 countries and territories are divided among 19 out of 21 economic sectors in all 63 provinces and cities, in which manufacturing and processing industry accounts for up to 57% of the total foreign capital.

The Republic of Korea and Japan are the biggest investors in Viet Nam with combined capital of nearly US$117 billion, the Ministry reported.

However, after more than 30 years of attracting foreign investment, some shortcomings are looming large, especially the links between domestic and foreign-funded enterprises remain weak.

Many of foreign-funded projects have had high energy consumption rates and caused environmental pollution due to the use of low technology levels while some others have tried to commit to tax fraud.

Though Viet Nam welcomes foreign investors, hoping their capital and technology will help the country improve its industries but technology transfer has been far below expectations.

In terms of governance, Prime Minister Nguyen Xuan Phuc once pointed out State management on foreign investment has not been strict and the country has been slow in attracting high-tech investors. In addition, local authorities lack consistent policy on foreign investment attraction.

Shaping new mindset underway

Earlier on April 2018, the Government organized a national conference with the participation of Government leaders, economists and business representatives to dig for both benefits and side effects of foreign investment after three decades.

The participants agreed foreign-invested sector has been an integral part of the Vietnamese economy, contributing to help the country realize many of its development goals.

Viet Nam is one of the 12 most successful countries in terms of foreign investment attraction, Prime Minister Nguyen Xuan Phuc told the audience.

More importantly, they also scrutinized weaknesses and shortcomings that need to be fixed.

Over the past week, Politburo member, Deputy Prime Minister Vuong Dinh Hue led a Government delegation on fact-finding tours to  Dong Nai, Hai Phong, Bac Ninh and Ha Noi. The next destination will be the Southern industrial hub – Binh Duong province.

The facts from the tours to the aforesaid top foreign investment recipients will serve as input for the Government to envisage a plan on future orientations for foreign investment attraction, which will then be submitted to the Politburo for consideration.

New mindset is clearly required now to maintain foreign invested-sector as an integral component of the economy, and more importantly, the sector needs to play a role helping the country to build an independent economy in which internal power is the decisive factor./.

By Quang Minh