The new policy on attracting foreign direct investment
(FDI) will be set up based on four main principles. The FDI projects must have
high quality and efficiency.
They must aim to the
sustainable development on the basis of the low-carbon economy. Especially,
foreign investors have to make commitments on technology transfer and help
train high qualification labor force.
The four principles have been
proposed by Dr Nguyen Mai, Chair of the Vietnam Association of Foreign Invested
Enterprises VAFIE.
Mai said at a workshop
reviewing the efficiency of foreign investment and discussing the solutions to
speed up the disbursement, that the disbursement rate in the last five years
has been stable at US$10 billion per annum. The disbursement rate was kept even
in the most difficult period of 2011. This shows that the investment
environment and the Vietnamese policies to attract FDI remain attractive to
foreign investors.
However, Manh said that in
attracting FDI, Vietnam needs to shift from Asian small and medium enterprises
to multi-national economic groups of Japan, the US and the member of countries
of OECD. This aims not to lag behind the world when implementing all the WTO’s
commitments and the commitments within the framework of the free trade area
with ASEAN, China and Japan from 2012, and in order to avoid becoming a
“technology rubbish dump” of the world.
“In the new period of
development, Vietnam needs to prioritize to attract high technologies
industries, advanced services which allow to create breakthroughs in
technologies and help improve the competitiveness of the country.
If Vietnam applies new
technologies in making steel, it can save 40 percent of the energy and reduce
50 percent of carbon emission. The figures would be 35 and 25 percent for
cement production, 80 and 60 percent for printing paper and pulp production.
Vietnam also needs to restrict
the labor intensive FDI projects such as garment and footwear, while giving
places for domestic enterprises to develop the industries. As for big FDI
projects, which need high quality workers, Vietnam needs to make commitments
with foreign investors in terms of the quantity and quality of workers to be
provided.
Agreeing with Dr Mai, Nguyen
Noi, Deputy Head of the Foreign Investment Agency, a unit of the Ministry of
Planning and Investment, said that a lot of problems have arisen from the
foreign invested projects. A lot of investors do not have the awareness of
protecting the environment, while many projects use backward technologies.
Especially, strike remains a headache.
According to Noi, the Prime
Minister has assigned MPI to compile the plan on reviewing the situation of the
foreign invested sector and suggest the methods to upgrade FDI in 2011-2020,
which needs to be submitted to the Prime Minister by the second quarter of
2012.
MPI plans to request local
authorities to refuse the projects which may cause environment pollution, and
the ones which have small investment capital but use large areas of lands. The
projects, which do not bring high efficiency, but use a lot of natural
resources, backward technologies which consume much energy will be refused to
give places to the projects that use high and clean technologies, the projects
in the supporting industries.
Le Tuyen Cu, Deputy Director of
the Economic Zone Management Department of MPI, said that the tax incentive
policies need to be adjusted to meet the requirements in the new period of
attracting FDI.
Under the current laws, only
some business fields can enjoy the highest preferential levels (the corporate
income tax of 10 percent for 15 years).
According to MPI, to date,
Vietnam has attracted 13,496 FDI projects with the total registered investment
capital of US$195.9 billion. Of these projects, 65 percent have seen the
capital contribution completed.
VietNamNet
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