(VOVworld)- As a developing country, Vietnam has been fine-tuning several economic policies including policies on foreign direct investment and domestic investment development, Minister of Planning and Investment Bui Quang Vinh told reporters last week. Here are the highlights of the Ministers’ remarks.
Minister of Planning and Investment Bui Quang Vinh |
In the first four months of this year, Vietnam attracted more than 4.8 billion USD worth of FDI from 36 countries and territories. The Republic of Korea led with investment capital of more than 1.1 billion USD, more than 23% of the total investment in Vietnam. Japan was second with 530 million USD, accounting for 11%, and Singapore was third with 479 million USD accounting for 9.9%. In the first quarter of this year, there were more than 18,000 newly registered enterprises with a total capital of nearly 5 billion USD, up 17% in number of enterprises and up 23% in registered capital. This was the forth consecutive quarter Vietnam had increased its number of newly registered enterprises.
Efforts to attract foreign investment
Economists are optimistic about FDI attraction in Vietnam. They say Vietnam is enjoying great opportunities to attract more FDI thanks to its increasing competitiveness and better political stability and social security compared with other ASEAN countries. Foreign investors appreciated the investment potential of Vietnam’s population of 90 million people, projected to be 100 million people by 2020. Approximately 15 million of whom have incomes of more than 10,000 USD a year. Foreign investors also praise the Vietnamese government’s efforts to improve Vietnam’s investment climate. While not yet satisfying all investor requirements, the Vietnamese government continues to seek ways to improve the investment environment by reforming administrative procedures and revising laws related to investment. Minister Vinh said: “Vietnam’s investment environment is not really perfect because Vietnam is a developing country and its legal system is being fine-tuned. But Vietnam is exerting efforts to improve its investment environment and these efforts have been recognized by foreign investors. The recognition is reflected in the increasing number of FDI projects and FDI capital in Vietnam.”
Key changes to develop the domestic economic sector
In addition to efforts to attract foreign investment, Vietnam is aware that it needs to boost domestic enterprises in order to accelerate national development. Domestic enterprises have been restructured and equitized to increase their productivity. Of the private economic sector, Minister Vinh said: “We need to pay more attention to private enterprises because they account for a large number and play the most important role in the economy. In drafting economic development orientations, we aim to mobilize all resources and create policies that fully exploit the advantages of private enterprises. The private sector plays an important role in Vietnam’s economic growth”.
By revising its Enterprise Law and Investment Law, Vietnam will change enterprise mergers and acquisitions to speed up the equisition of SOEs and restructure the economy. These two laws encourage enterprises to contribute to the national economy by stipulating that individuals and enterprises are allowed to invest in all business areas that the law doesn’t specifically forbid. Some licensing will be eliminated to create more favourable conditions for business activities and ensure equal opportunity for all.