Vietnam to review 30 years of FDI

A conference to review 30 years of foreign direct investment (FDI) in Vietnam will be held in the first week of October 2018, according to Prime Minister Nguyen Xuan Phuc.

Automobile production in Hyundai Thanh Cong factory (Photo: VNA)

Automobile production in Hyundai Thanh Cong factory (Photo: VNA)

The PM assigned the Ministry of Planning and Investment to ask for approval of the Politburo on holding the conference, while making a report summarising foreign investment attraction over the past 30 years, with an evaluation of the work in the past five years.

The report will assess major aspects of foreign investment attraction, including investment in support industry, connectivity between foreign-invested and domestic enterprises, technology and technology transfer, environment, FDI in infrastructure, agriculture and service, State management over FDI, support to FDI firms and plans for future FDI attraction.

The PM emphasised the significance of the conference in creating consensus on the evaluation of luring FDI, aiming to promote strong points and minimise weaknesses. Investment promotion is also part of the event.

Over the years, the FDI sector has been a dynamic economic area with positive contributions to growth, giving important capital resources, and helping enhance the efficiency of domestic resources and transforming the economy’s structure.

The sector has also contributed to increasing the country’s exports, expanding foreign markets, generating jobs and promoting technology transfer.

Vietnam attracted more than US$20 billion in FDI in the first half of 2018.

The capital was poured into 1,362 new projects and 507 existing ones and used to contribute capital and buy shares in domestic companies.

According to Deputy Minister of Planning and Investment Nguyen The Phuong, after 30 years Vietnam opening its door to foreign investors, the FDI sector has become an important part of the economy.

To date, the country has attracted nearly 26,000 projects with registered capital of 326 billion USD. Disbursement is estimated atUS$ 180 billion.

Foreign investment accounts for 25 percent of the country’s total investments and contributes 20 percent of GDP. Last year, the sector contributed nearly US$8 billion to the state budget, 14.4 percent of total revenue.

At present, 58 percent of foreign investments focus on processing and manufacturing, generating half of industrial production value.

Vietnamplus

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