Facing tough competition from Thailand and Indonesia, Vietnam is busy
preparing tastier baits to lure foreign direct investment.
“We will build Vietnam into an
investment destination far more attractive than other regional nations,” Prime
Minister Nguyen Tan Dung told last week’s Consultative Group (CG) meeting for
Vietnam in Hanoi.
To that end, Ministry of Planning
and Investment (MPI) Minister Bui Quang Vinh told VIR during the CG meeting
many investors from South Korea, Japan, Taiwan and Germany had assured that
they would implement major projects in Vietnam if the country’s investment and
business climate was improved.
“We cannot miss this opportunity.
The more difficulties the Vietnamese economy faces, the more foreign direct
investment (FDI) it needs to lure, because FDI can pump big capital and high
technology into Vietnam,” Vinh said.
Citing Bac Ninh province-based Samsung
Electronics Vietnam as an example, Vinh said the firm had increased its
investment capital from $670 million for the first phase to $1.5 billion for
the second phase, after the government gave it tax incentives for the expanded
project. Specifically,
Samsung Electronics Vietnam will
enjoy a 10 per cent corporate income tax for all products manufactured at the
new factory instead of 25 per cent commonly applied, though under existing
laws, an investment expansion will not be granted incentives like a newly
established project.
“With the tax incentives, Samsung
will continue its investment,” Vinh said. “Such projects from South Korea,
Japan, Taiwan and Germany will be deployed in Vietnam if more incentives [like
those for Samsung] are given to them.”
Vinh said 2013 would bring
positive changes in Vietnam’s investment and business climate, thanks to the
National Assembly’s expected adoption of a series of business-related laws,
such as the revised Investment Law, the revised Corporate Income Tax Law, Public
Investment Law and the revised Land Law.
“When these laws and their
guiding decrees are enacted, a more attractive investment will be created.
Besides, Vietnam’s increasingly-improved economic situation and administrative
procedures in 2013 will create better conditions for more FDI to come into
Vietnam,” Vinh said.
“The Vietnamese government’s most
important message to foreign investors is that Vietnam will continue bettering
its investment and business climate in favour of them,” Vinh noted.
The MPI reported that Vietnam’s
pledged FDI capital this year would be about $15 billion, while the
disbursement was expected to be around $11 billion. The same figures were also
expected for next year.
“Given Vietnam’s economic
conditions and the world’s ever-growing economic woes, these figures are quite
good and mirror investors’ big confidence in Vietnam’s economic potential,”
Vinh said.
The MPI said Vietnam was
currently faced with regional rivals in FDI attraction like Thailand ,
Indonesia and newly emerging Myanmar. Thus Vietnam must improve its investment
environment as soon as possible.
Zaw Naing Thein, member of the
Union of Myanmar Federation of Chamber of Commerce and Industry, told VIR that
in a bid to lure FDI, Myanmar ’s government would not hold monopoly in almost
all sectors, which could be joined by private investors with favourable
investment incentives for them. “This point is much more attractive to foreign
investors than in other regional countries including Vietnam ,” Thein said.
Nguyen Dat | vir.com.vn
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