TPP to spur hi-tech field investment

illustration photo

One month ago, South Korea’s Samsung Displaywas conferred an investment certificate to inject $3 billion more into its existing $1 billion screen production facility in the northern province of Bac Ninh. Samsung, which has registered $14.2 billion in Vietnam, is not the only investor heading Vietnam right now, as experts believe Vietnam could see big development opportunities once the Trans-Pacific Partnership (TPP) is officially ratified.

According to US-based Peterson Institute for International Economics, as Vietnam’s major rivals in Southeast Asia have yet to participate in the TPP, Vietnam has plenty of opportunities to attract investment into the hi-tech field and move one step ahead in the global value chain.

After American tech giant Intel dropped anchor in Vietnam a decade ago, Vietnam has witnessed a wave of global tech companies making forays into the country, including Samsung, LG, Microsoft, Bosch, Nidec, and Jabil, just to name a few.

TPP ratification is believed by experts to further inspire this capital flow into Vietnam, as one of the commitments in the TPP requires Vietnam and other member countries to seriously and radically expedite intellectual property (IP)-related laws.

EuroCham in Vietnam’s chairwoman Nicola Connolly said that serious protection of intellectual property laws was important to attract FDI to Vietnam. Albeit the country had seen improvements in the legal framework and the enforcement of IP regulations in recent years, violations and expedition of IP laws remained a concern to businesses coming from Europe and local firms alike.

Connolly said that effective enforcement of IP laws would help bolster Vietnam’s edge in the region to lure FDI and stimulate inventions, one of Vietnam’s top concerns currently to improve the efficiency and competitiveness of the economy.