VietNamNet Bridge – Vietnam has decided that in the next stage
of foreign direct investment (FDI) encouragement, it needs to aims to the
quality, effectiveness and sustainable development instead of the number of
projects. However, Vietnam would have to exchange many things for this.
The initial suggestions for the
strategy on attracting FDI in the new period have been exposed to the public.
Under the plan to attract FDI by
2020 being compiled by the Ministry of Planning and Investment (MPI), Vietnam
would attach much importance to the structure and FDI quality by attracting the
projects with low carbon content, modern technologies. One of the most
important goals for FDI encouragement is to develop high quality labor force,
skilful workers, encourage foreign enterprises to reinforce their cooperation
with domestic businesses to increase the Vietnamese value in the value chain.
“What we need to do is to
optimize the benefits of the FDI capital flow,” said an official of MPI, who is
also a member of the compilation committee.
However, Mai Thu, Director of the
National Socio-Economic Information and Forecasting Center, who has many-year
experiences in FDI management, said there is still a big gap between the
“desire” and the “reality.”
“We want to attract advanced
technologies and we want high-tech projects to allocate reasonable budgets for
research and development work. However, we still do not know how advanced the
technologies should be,” Thu said.
“We still have not agreed about
if advanced technologies and appropriate investments in R&D should be the
requirement on all FDI projects, or these would be applied only to some
businesses fields,” she added.
Do Nhat Hoang, Head of the
Foreign Investment Agency, an arm of MPI, said though Vietnam has had the
development strategies for every branch and every industry already, it would be
still difficult to implement the strategies in reality.
“There always exists the gap
between what we need and what investors want,” Hoang said, adding that it is
very difficult to find out a “common denominator” what can satisfy the
requirements of both investors and the government.
Experts have warned that Vietnam
would have to exchange something for the FDI development on the right desired
track.
It may happen that the FDI
capital flow to Vietnam would decrease in the immediate time, when Vietnam
becomes choosier in attracting foreign investment.
The FDI encouragement strategy
compilation board has warned that with the FDI capital decline, the industrial
production value, the export turnover decreases prove to be inevitable.
Especially, the FDI projects using modern technologies and huge investment
capital would not employ many workers, which could be a problem to the
employment rate.
Thu has agreed that if Vietnam
strives to higher quality FDI, it would have to sacrifice many things in short
term. If Vietnam welcomes big and high quality FDI projects, it would have to
see the number of FDI projects decreasing.
“This would influence the total
investment capital of the whole society, to the GDP growth and employment,” Thu
said. “However, we have to accept all the challenges.”
In the first eight months of the
year, Vietnam attracted 8.47 billion dollars worth of FDI, including the newly
registered capital and the additional capital for currently operational
projects. The figure represented the 33.9 percent decrease in comparison with
the same period of 2011.
The sharp fall of FDI capital has
raised big worries about the investment environment in Vietnam. However, MPI
has reassured the public that FDI decreases in short term, but would bounce
back in long term.
Compiled by Thu Uyen
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