VINACHEM

(VOV) - Minister of Planning and Investment Bui Quang Vinh has spoken highly of the positive contribution of foreign direct investment (FDI) to Vietnam’s economic growth over the past 25 years.

Minister Vinh said that since the Foreign Investment Law took effect in 1987, FDI has helped Vietnam open its market and integrate deeper into the world economy.

FDI has raised Vietnam’s total social investment, provided fresh impetus to economic restructuring, increased production capacity, upgraded technology, expanded overseas markets, improved the balance of payment, contributed to the State budget, and developed higher-quality human resources. The foreign-invested sector is remarkably influential on other economic sectors, increasing competitiveness, promoting technology transfers, raising productivity, developing support industries, and improving Vietnam’s participation in the global supply chain, he said.

Minister Vinh cited some of major international companies which have succeeded in Vietnam, such as BP, Total, Toyota, Canon, Samsung, Intel, and Unilever and supporting domestic businesses on the way to globalisation. FDI inflows have helped restructure State-owned enterprise (SOEs), promote administrative reform, and reinforce the institutions of the market economy.

For whatever it’s worth, Vinh said, not all FDI projects have paid off well as expecped. The ratio of high technology application and employment rates remain low. Some localities have granted licenses to FDI projects which are not included in zoning plans, paying no heed to national security, environmental protection, and social benefits.

FDI attraction in focus

Minister Vinh said FDI has become an increasingly important fuel for Vietnam’s economic growth, especially in the current context of global economic slowdown and official development assistance (ODA) reduction.

To develop Vietnam into a modern industrial country by 2020, he said, FDI attraction must focus on environmentally friendly projects using advanced technology in line with economic restructuring plans in different regions and sectors.

Vinh stressed the need to develop large-scaled projects with products capable of competing in the global supply chain of transnational groups, promote the support industry and expand inter-sector networks.

FDI inflows should be used to full advantage where projects are designed to stimulate local growth and protect national interests, he added.

The Minister suggested FDI businesses recruit high-quality human resources instead of low-cost labour.

Vinh insisted that top priority should be given to macroeconomic stability, domestic market expansion, infrastructure upgrade, and human resource development. Local business networks need expanding to improve the business climate.

Minister Vinh also underscored the importance of completing a legal system that generates a consistent and transparent investment environment with accurate forecasting capacity and adopting incentive policies to attract more foreign investors to certain key sectors and regions.

Vinh proposed strengthening FDI management inspection in localities on a regular basis.

In the near future, he said, the Government should continue pushing through administrative reform by simplifying procedures for businesses and producers, preventing wastefulness and combating corruption at any cost.