Foreign investors committed to Vietnam's sustainable development

At the prime minister’s conference with foreign-invested enterprises on April 23, nearly $4 billion was committed to Vietnam, according to the Ministry of Planning and Investment.

It was the largest-scale conference ever aimed at such investors, highlighting the belief of foreign businesses in Vietnam.

The prime minister meets foreign-invested enterprises. Photo: VGP/Nhat Bac

The prime minister said that in recent years, foreign direct investment (FDI) activities in Vietnam had become more exciting and more multinational corporations and large foreign-invested enterprises with modern technology were investing with increasing quality and efficiency.

For the business community and investors, he said that it was necessary to develop a long-term, sustainable, and environmentally friendly business strategy, focusing on emerging industries such as digital transformation, green transformation, circular economy, innovation, and climate change response.

"The success of investors is also the success of Vietnam. Vietnam always welcomes and creates favourable conditions for investors to win and develop together with Vietnam. Please let us join hands, working together, unitedly, with practical and effective actions, striving for a world of peace, stability, cooperation, and development, where no one is left behind," the PM said.

A series of issues such as work permits for foreign experts, green investment, supply chains, the upcoming global minimum tax, healthcare, and the energy sector were discussed by the various participants, which included heads of influential international organisations.

Foreign-backed enterprises and business associations at the conference. Photo: VGP/Nhat Bac

Nitin Kapoor, co-chair of the Vietnam Business Forum and president of AstraZeneca said, “It is necessary to study the impact of the global minimum tax on the interests of investors and the business environment in Vietnam, thereby providing practical, effective and timely solutions to ensure investment.”

Meanwhile, Antonia Zahn-Weber, CEO of VFT Industry UG based in Munich, said that the company had cooperated with German and Vietnamese enterprises to prepare an estimated $1.5 billion investment in Vietnam capable of producing green stainless steel estimated at 600,000 tonnes per year.

“We have invested millions of euros in green energy power generation system. We are honored to have the support of the Vietnamese government as well as local authorities to implement projects to reduce net-zero emissions of Vietnam,” she said.

In the related energy sector, Joshep Frank Uddo, president of AES Vietnam said, “We are ready to partner towards Vietnam's commitment to energy transition. Conversations like we had today about policies and regulatory frameworks will support the transition and further advance the country’s energy goals. Progress on AES’ and other large-scale foreign-invested projects now will unlock billions of dollars in investment needed to achieve a greener and sustainable energy future for Vietnam.”

AES is ready to focus on the energy transition. Photo: VGP/Nhat Bac

Kim Huat Ooi, vice president and general director of Intel Products Vietnam, said that Intel Vietnam was one of the most important production locations of Intel Corporation and production output contributed significantly to the total export value of Vietnam.

“In the past three years, despite the impact of the pandemic, Intel's annual export value accounted for more than half of the total of Saigon Hi-Tech Park exports. Intel has contributed $75 billion in export value over the past 13 years and has created more than 7,000 high-tech jobs. The corporation's investment has grown to $1.5 billion, and we look forward to continued growth in Vietnam,” he said.

Home of global groups such as Samsung, Intel, Bosch, and AES, Vietnam targets luring $150-200 billion worth of the total registered FDI in the 2021-2025 period. In this period, the disbursed FDI will be $100-150 billion, or $20-30 billion annually. During 2026-2030, the total registered FDI will be $200-300 billion and the disbursed capital will total at $150-200 billion.

Vietnam must revisit policies to develop implementation of global minimum tax Countries that have outbound and inbound investment activities have been making drastic moves in considering policies related to the global minimum tax (GMT). If Vietnam does not take immediate action or delays implementing it, it may miss the opportunity to have the right to tax and may be left behind in attracting foreign investment.

Dong Nai’s FDI attraction booming, nearly triple in Q1 Foreign direct investment in the southern province of Dong Nai surpassed 500 million USD in the first quarter this year, nearly tripling that in the same period last year, according to the management board of the provincial industrial parks.

Vietnam’s green economy expected to reach 300 billion USD by 2050 Vietnam has set a target of increasing its green economy's contribution to GDP from 6.7 billion USD in 2020 to 300 billion USD by 2050, which requires drastic and breakthrough steps, Minister of Planning and Investment Nguyen Chi Dung has said.