Vietnam needs to have policies to drive foreign direct investment (FDI) in necessary fields and overcome negative outcomes, including backward technology, environmental pollution and transfer pricing, said Minister of Planning and Investment Bui Quang Vinh.
Minister Vinh made this statement at a seminar in Hanoi on Mar. 15, on measures to improve the quality of foreign investment flow into Vietnam .
“Some issues need immediate attention, some must be carried out in the medium term, but the most important thing is to carry them out in a comprehensive manner with consensus and concentration,” he said.
According to Vinh, over the past 20 years, foreign investment has made important contributions to the country’s socio-economic development, creating a huge resource for economic restructuring with modern management and technology.
FDI enterprises contribute over 18 percent to the Gross Domestic Product (GDP) and more than 50 percent to the country’s export turnover.
However, several localities attracted investment with backward technologies and produced products with low competitiveness, while industrial waste from some projects caused environmental pollution.
The Prime Minister has issued an instruction on regulating investment activities, restructuring the economy and rearranging the growth model, following the trend of raising efficiency by applying high technology to produce competitive products.
Therefore, FDI attraction must focus on gaining cutting-edge and energy-efficient technology to make product prices competitive.
Moreover, FDI flow will be driven in the fields of support industry and some areas of the country’s advantages in spite of investor preferences.
Head of the Foreign Investment Agency Do Nhat Hoang informed the seminar that the Government assigned the Ministry of Planning and Investment to review foreign investment activities over the past 20 years to make orientations until 2020. -VNA
However, to take full advantage of FDI to develop the socio-economy, all ministries, sectors, localities and enterprises need to join hands to provide solutions to raise the quality and efficiency of FDI capital and the competitiveness of the investment environment.
By February of this year, the number of operating foreign invested firms was 13,530, valued at nearly US$200 billion.
Japan , Singapore and the Republic of Korea have been the biggest foreign investors in Vietnam in terms of capital.
Ho Chi Minh City , the southern province of Ba Ria-Vung Tau and Hanoi are the leading localities in the country in attracting FDI.