Concrete policies needed to lure more FDI: experts

Thien Thanh Sanitaryware joint company



Concrete policies needed to lure more FDI: experts

A light decrease in foreign direct investment (FDI) into Vietnam over the last 10 months prompted experts to ask for the introduction of a market-oriented attraction strategy along with post-licensing caring services for operating investors.

According to Nguyen Dinh Cung, head of the Central Institute for Economic Management, the attraction of FDI should be considered as an important and effective driving force of the country’s economic development in policies outlined to reel in foreign investments.

The Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI) reported that by October 20 the country drew 13.7 billion USD, in FDI, which is equivalent to 71.2 percent of the same period a year earlier.

The figure included 9.95 billion USD from 1,306 newly-licensed projects and 3.74 billion USD as additional capital required by the 469 underway projects.

The decline was attributed to fewer large-scale projects than last year – the situation that was forecast at the beginning of the year, according to Nguyen Noi, FIA deputy head.

Projects with less than 5 million USD currently account for about 70 percent of total FDI projects, he noted.

Experts shared the view that the investment and business environment in the country remained uncompetitive regionally.

FDI disbursement, however, picked up speed, rising by 5.9 percent year on year, with 10.15 billion USD. It is predicted that the rate could reach 8.7 percent with 12.5 billion USD for the full year.

Over the reviewed period, FDI firms earned 82.48 billion USD from exports, up 13.6 percent year on year. The amount accounted for 67 percent of the country’s total revenue, according to FIA.

Head of MPI Department of Economic Zone Management Tran Duy Dong remained very optimistic about the country’s FDI attraction.

He cited the two recently-licensed projects - the 1.4 billion USD Samsung CE Complex in Ho Chi Minh City and the over 1 billion USD Samsung Display in northern Bac Ninh – as examples.

Do Nhat Hoang, FIA head, said in the following years FDI will be sought for projects manufacturing global value chain products.

The source of capital will also be hunted for the industry-construction, service, agro-forestry, and especially the support industry, he said.

Nguyen Dinh Cung, head of the Central Institute for Economic Management, suggested localities define clearly their criteria to choose investors, while applying transparent and equal policies to ensure win-win benefits.

MPI Minister Bui Quang Vinh affirmed that the country has taken maximum efforts to make the investment and business environment better and more attractive.

He expressed his belief that Vietnam could lure 15-16 billion USD in FDI this year.

Viet nam plus