At a panel discussion of the “Stronger Investment Partnerships for a Thriving Vietnam” conference held by Investment Review in Hanoi on May 15. (Photo: VietnamPlus) Hanoi (VNA) – The Ministry of Planning and Investment (MPI) will continue its coordination with other ministries, agencies, localities, associations and investors in reforms, thus building the best investment and business environment, towards standards set by the Organisation for Economic Cooperation and Development (OECD), heard a conference in Hanoi on May 15.
Vietnam remains a promising destination
Speaking at the “Stronger Investment Partnerships for a Thriving Vietnam” conference held by the MPI’s Investment Review, MPI Deputy Minister Do Thanh Trung pointed out that the global economy is facing a host of challenges, which has greatly affected the investment flows around the world.
Moreover, some economies plan to apply the global minimum tax rate of 15% from 2024, he said, noting that all the factors have led to the declining trend in foreign investment in Vietnam.
Deputy Minister of Planning and Investment Do Thanh Trung speaks at the conference. (Photo: VietnamPlus) However, the domestic situation has turned positive as the total registered FDI in Vietnam in the first four months of this year reached nearly 8.9 billion USD, down only 18% year-on-year as compared with the 39% decrease recorded in the first quarter, the official said.
Notably, capital contribution and share purchase were worth 3.1 billion USD, up 70% in value and the number of new projects rose by 65%.
According to Trung, investors from the US, Europe, Japan and the Republic of Korea (RoK) have expressed their confidence in Vietnam’s economic growth potential, as well as the country’s efforts in improving the domestic business environment.
He cited a survey by the Japan External Trade Organisation (JETRO) showing up to 60% of Japanese firms plan to expand investment in the Southeast Asian nation in the next one or two years, the highest rate in the Association of Southeast Asian Nations (ASEAN).
Another survey conducted by the European Chamber of Commerce in Vietnam (EuroCham) also reveals that Vietnam remains in the top five global investment destinations for European enterprises, with 41% of the respondents saying they are moving operations to Vietnam, the official went on.
He stressed that Vietnam prioritises projects requiring less workforce, energy, land, and resources while providing high added value, and stimulating green growth, and comprehensive and sustainable economic development.
The Deputy Minister called on foreign enterprises to strengthen connectivity with domestic companies, and help them improve their capacity and join global value chains more intensively.
Creating the best investment environment
General Director of AEON Vietnam Furusawa Yasuyuki said many Japanese enterprises want to invest in Vietnam, noting the Japanese retail AEON Group has considered Vietnam one of the two major markets, apart from Japan, to increase investment.
Regarding AEON Vietnam’s operation plan in the next three to five years, Furusawa said the firm will maintain its focus on opening large-scale shopping centres while accelerating the establishment of new stores to provide high-quality products and services for local residents.
Furusawa expressed his hope that investment-related procedures will be simplified, and that local authorities will coordinate to quickly make decisions relating to investment.
Samsung's production chain in Vietnam. (Photo: VietnamPlus) Choi Joo Ho, General Director of Samsung Vietnam, showed interest in Vietnam’s investment policy after the global minimum tax is put in place next year, stressing the improvement of the investment environment should be continuously carried out, with suitable adjustments made based on changes in the external environment.
In this regard, Trung noted that to raise the quality and efficiency of FDI inflows, the Vietnamese Government has been reforming institutions, improving the business environment and creating optimal conditions for the business community, including foreigners, to operate in the country.
Vietnam will focus on building and developing a scientific-technological and innovation ecosystem, developing a strong and capable domestic business sector that is fully integrated into the international community, with priorities given to high-tech, modern services, manufacturing, information technology, and financial services; and optimising internal capabilities and competitive advantages to improve the efficiency of foreign investment cooperation, he said.
The ministry will continue reviewing, studying, and advising on amending mechanisms and incentives to attract more foreign investment in the context of the global minimum tax, thus ensuring the harmony in interests among parties, the official pledged./.
