Samsung Electronics Vietnam (Source: baodautu.vn)
Hanoi (VNA) – Selecting high-quality foreign direct investment (FDI) projects is essential to economic growth, Minister of Planning and Investment Bui Quang Vinh has said.

FDI has been generating jobs for millions of workers, he said, citing as an example Samsung Electronics Vietnam Thai Nguyen (SEVT) which employs over 200,000 workers.

According to the Ministry of Planning and Investment’s Foreign Investment Agency, FDI businesses play a crucial role in the local economy as they create jobs for nearly 3 million workers and make up over 20 percent of the country’s total investment capital.

FDI firms active in the northern province of Bac Ninh, Ho Chi Minh City and Binh Duong province are significant contributors to domestic GDP.

Statistics from the Foreign Investment Agency show that Vietnam drew more than 22.7 billion USD in newly registered and additional capital in 2015, up 12.5 percent against 2014.

Foreign businesses are pumping investment into 19 sectors, especially industrial processing and manufacturing, which attracted 955 newly-registered investment projects and 517 with additional capital worth a combined 15.23 billion USD last year, accounting for 66.9 percent of the total registered investment.

Sixty-two nations and territories are running investment projects in Vietnam. The Republic of Korea leads with 702 newly-registered projects and 269 with additional capital totaling 6.72 billion USD, making up 29.6 percent of the total investment capital in Vietnam.

Malaysia and Japan are in second and third with 2.47 billion USD and 1.84 billion USD, accounting for 10.9 percent and 8.1 percent of the total investment capital in Vietnam.

The foreign investment sector also recorded 115.1 billion USD in exports (including crude oil) last year, an annual increase of 13.8 percent, making up 70.9 percent of Vietnam’s total export turnover.

Experts said Vietnam has favourable conditions to become a strategic investment destination for both multi-national groups and small and medium-sized enterprises as the country is a partner of 55 global economies in free trade agreements, with over 90 percent of tariff lines having been cut to zero percent.

Head of the Foreign Investment Agency Do Nhat Hoang revealed that there will be more preferential policies for businesses, particularly regarding corporate income tax, import tax and land lease costs.

The Ministry of Planning and Investment will continue to call on foreign companies to invest in high-quality projects while embracing links between FDI businesses and domestic partners, he noted.-VNA