Vietnam is mapping out a comprehensive strategy to attract foreign
direct investment to excite investors’ eyes.
According to the Ministry of
Planning and Investment (MPI), the strategy would assess the current situation
of foreign direct investment (FDI) on the ground during the past 25 years.
Given the assessment, the MPI will draw up a comprehensive strategy to improve
the investment climate, state management and quality of FDI in the country from
now to 2020.
“There have been lots of changes
in the world in recent years. In addition, our economy is different from it
used to be some years ago so that we need new strategy and targets in FDI
attraction,” said Dao Quang Thu, MPI’s Deputy Minister.
One of the most important points
in the strategy is reducing labour-intensive FDI projects with low technology,
while increasing FDI in low-carbon sectors, R&D projects, agriculture and
service sectors. More importantly, foreign invested enterprises must have
linkage with domestic suppliers to boost local industrial manufacturing.
“We have to limit FDI in labour
and energy intensive sectors and FDI projects with low technology,” said Do
Nhat Hoang, director of the MPI’s Foreign Investment Agency. But this is the
first time this FDI strategy has been prepared with specific and comprehensive
targets and measures.
Hoang said the new strategy could
lead a decline in FDI commitments to Vietnam in the short-term because many
foreign investors would relocate their labour and energy intensive projects to
other countries like Cambodia and Myanmar.
“What we’ve got from this
strategy is to attract FDI in hi-tech sector and huge capital,” said Hoang,
adding that there would changes in incentives and management policies.
By the end of August 2012,
foreign investors committed to invest around $200 billion in Vietnam. According
to the MPI, foreign invested enterprises have significantly contributed to the
economic growth, created jobs and develop manufacturing industry in the
country.
However, the impact of FDI on
Vietnam’s industry development is at low level as a high proportion of foreign
invested enterprises are operating in low-tech manufacturing industries, FIA
said.
According to the United Nations
Industrial Development Organization’s report, about 40 per cent of foreign
invested enterprises in Vietnam operate in low-tech industries, almost 25 per
cent in medium-tech and almost 30 per cent in high-tech manufacturing
industries.
“Technology transfer may be
limited as foreign investors have not invested much in high value-added
sectors,” said the report.
Ngoc Linh | vir.com.vn
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