Minister of Planning and Investment Nguyen Chi Dung urged local companies to utilise their relative advantages over foreign firms during the pandemic to go on an M&A spree and buy into promising overseas enterprises.
|Minister Nguyen Chi Dung advising local companies to engage in overseas M&A at the conference on developing sustainable value chains |
"While a lot of promising corporations across the globe are reporting losses due to COVID-19, why don't Vietnamese ones do some shopping and acquire a part or whole of these corporations?" asked Minister of Planning and Investment Nguyen Chi Dung local enterprises at the conference on supporting Vietnamese enterprises to develop sustainable value chains yesterday (July 24).
The minister said that the Vietnamese government is targeting to lure foreign direct investment (FDI) selectively to boost technology transfer to Vietnam's businesses and to add more local firms to international supply chains. This will include more incentives for investment projects aligning with this policy direction.
"The amended Law on Investment, which has recently been approved by the National Assembly, provides some outstanding incentives for investors, which will serve as the foundation for the MInistry of Planning and Investment (MPI) to deal with big corporations over the world. We should highlight the benefits or stimuli on offer for investors to mobilise FDI," said Minister Dung.
According to the minister, Resolution No.50-NQ/TW of the Politburo (in 2019) on perfecting institutions and policies and improving the quality and effectiveness of foreign investment cooperation to 2030, as well as Industry 4.0 will be a good chance for local businesses to embark on digital transformation. All these require them to move soon and move fast.
However, Minister Dung also highlighted that in addition to the domestic market, local businesses should set their sights on overseas markets. "Vietnam is integrating ever more deeply into the global economy, joining value and production chains, so businesses should think further and create a clear vision to seize profitable opportunities overseas," he said.
In the context of the global health crisis, the minister sees good chances for local firms. "COVID-19 poses Vietnamese businesses remarkable difficulties and challenges. This is also a test of their 'health', as well as a chance to restructure their operations," he confirmed, adding that a lot of groups over the world are also restructuring their value chains.
"For whom do free trade agreements open such a huge market? If local firms do not grow, both the domestic market and the ones opened by FTAs will be taken by foreign businesses," said Minister Dung.