Completing a legal framework to raise the effectiveness of luring more foreign direct investment (FDI) in Vietnam is considered an important measure to compensate for the decreasing capital flow trend.
FDI has played an important role in the country’s economic development, recording impressive achievements event during the economic turmoil that began around six year ago. The FDI sector contributes 20 percent to the country’s GDP and has taken technology to higher levels, improved the quality of human resources and generated jobs.
According to the Ministry of Planning and Investment (MPI), the country attracted 3.3 billion USD in the first quarter of this year, half of the same period last year’s figure.
However, this year’s total FDI will not be lower than 2013, MPI Minister Bui Quang Vinh said, adding that some major projects are expected to be agreed in 2014.
Apart from increasing capital by attracting FDI, Vietnam also hopes to boost its technology transfer, which has not yet developed enough, Vinh said.
According to a report reviewing 20 years of Vietnam’s FDI attraction, technology transfer accounts only five percent of the total FDI projects.
FDI businesses in Vietnam, nevertheless, have had an impact on restructuring the economy and sectors towards increase in competitive quality, the minister noted. The presence of FDI businesses using advanced technology has prompted domestic firms to improve their quality and increase competiveness for their products, he added.
However, Vietnam will overly rely on foreign capital if the country does not pay due attention to domestic businesses.
The minister said a focus on domestic businesses, including State-owned enterprises and private firms, is important to the country’s development in the coming time.
The laws on enterprises and investment will be revised to pave the way for domestic businesses, especially those from the private sector, to develop, Vinh added.
In addition, a provision on M&A is expected to be added in the revised Investment Law in the near future, while a decree on PPP compiled by the MPI will be introduced to the public in 2014, Vinh affirmed, adding that issues relating to M&A and PPP will help investment climate.-VNA
FDI has played an important role in the country’s economic development, recording impressive achievements event during the economic turmoil that began around six year ago. The FDI sector contributes 20 percent to the country’s GDP and has taken technology to higher levels, improved the quality of human resources and generated jobs.
According to the Ministry of Planning and Investment (MPI), the country attracted 3.3 billion USD in the first quarter of this year, half of the same period last year’s figure.
However, this year’s total FDI will not be lower than 2013, MPI Minister Bui Quang Vinh said, adding that some major projects are expected to be agreed in 2014.
Apart from increasing capital by attracting FDI, Vietnam also hopes to boost its technology transfer, which has not yet developed enough, Vinh said.
According to a report reviewing 20 years of Vietnam’s FDI attraction, technology transfer accounts only five percent of the total FDI projects.
FDI businesses in Vietnam, nevertheless, have had an impact on restructuring the economy and sectors towards increase in competitive quality, the minister noted. The presence of FDI businesses using advanced technology has prompted domestic firms to improve their quality and increase competiveness for their products, he added.
However, Vietnam will overly rely on foreign capital if the country does not pay due attention to domestic businesses.
The minister said a focus on domestic businesses, including State-owned enterprises and private firms, is important to the country’s development in the coming time.
The laws on enterprises and investment will be revised to pave the way for domestic businesses, especially those from the private sector, to develop, Vinh added.
In addition, a provision on M&A is expected to be added in the revised Investment Law in the near future, while a decree on PPP compiled by the MPI will be introduced to the public in 2014, Vinh affirmed, adding that issues relating to M&A and PPP will help investment climate.-VNA
