Viet Nam a safe destination for high-quality FDI

Viet Nam a safe destination for high-quality FDI

High-quality FDI and promoting the spillover effect and connections between FDI firms and the domestic economic sector were among the contents emphasized by Era Dabla-Norris, chief of the International Monetary Fund (IMF) delegation in charge of Vietnamese issues, in a recent interview granted to Vietnamese reporters from Washington.

The expert said that Prime Minister Nguyen Xuan Phuc’s decision to set up a special working group on FDI attraction to welcome the wave of shifting production to Viet Nam after the pandemic was very praiseworthy. It showed the Government’s thorough understanding of FDI’s importance and contribution to productivity and economic growth.

Previously, a noteworthy move was the Politburo’s issuance of Resolution No. 50-NQ/ TW dated August 20, 2019 aiming to enhance the quality of FDI attraction, call for the improvement of the business climate for foreign investors, promote links and connections between the FDI sector and the domestic economic sector, and work towards raising technical and environmental standards.

Although it is impossible to avoid the impact of the COVID-19 pandemic, the Southeast Asian country is still considered a “good land” to attract high-quality FDI capital after the disease is over.

According to the IMF expert, many large international corporations are seeking investment opportunities to diversify their supply chains. Viet Nam has emerged as one of the brightest candidates to welcome this capital flow thanks to its success in COVID-19 prevention and control.

In addition, the positive economic prospects after reopening, the large population size and the increasing number of people joining the middle class are also the favorable factors helping Viet Nam attract investment.

Obviously, with the goal of welcoming high-quality FDI that brings greater values, the quality factor is always given top priority. This requires Viet Nam to make a series of better overall reforms, such as renovating FDI-related institutions and regulations, as well as enhancing the protection of intellectual property rights, ensuring fair competition, removing non-tariff barriers, addressing corruption, and improving the skills of workers to meet the higher requirements from high-quality investors./.

By Vien Nhu