Conference of consultation on institutional and policies improvement on FDI in the new context

The shifting international scene has made it imperative for Vietnam to change its FDI policies

Deputy Prime Minister Vuong Dinh Hue will chair the conference that will see the participation of leaders of ministries, localities, agencies, international organisations, business associations (of the US, South Korea, and Japan), and hundreds of foreign-invested enterprises.

FDI has contributed significantly to Vietnam’s socioeconomic development. Foreign-invested projects are focusing on processing and manufacturing, real estate, and wholesale retail.

Deputy Minister of Planning and Investment Vu Dai Thang said that FDI flows over the globe are on a decreasing trend. International developments and trade tensions have affected the investment flows of countries, including Vietnam. The competition for FDI among regional countries has been increasing, while Industry 4.0 has had a significant impact on investment, business, technology, and human resources development.

Therefore, Vietnam needs to build a new orientation for the mobilisation and usage of FDI capital in the time coming. According to Deputy Minister Thang, FDI mobilisation will focus on high-tech sectors, modern governance, strengthening the country’s participation in production networks and global value chains in order to improve national competitiveness and encourage innovation.

This year, FDI capital is expected to pour into Vietnam, not only into labour-intensive sectors like textile and electronics as usual, but also into sectors using high-technology and skilled-labour, and environmentally friendly production.

Among the 39 provinces and cities receiving FDI capital in the first month of 2019, Binh Duong ranked second with the total registered capital of $240 million (12.5 per cent of the total investment capital), following Ho Chi Minh City with the total registered capital of $745.7 million (39.1 per cent) and by Hai Duong with $125.7 million (6.5 per cent).

According to the Foreign Investment Agency under the Ministry of Planning and Investment, in January 2019 the total newly and additionally registered capital and capital contribution of foreign investors was $1.9 billion, up 51.9 per cent on-year.