Future foreign investment attraction will be selective on the basis of key criteria like quality, efficiency, technology and environmental protection, according to Deputy Prime Minister Vuong Dinh Hue.
|Significance of foreign-invested sector in Viet Nam
In his latest article following the introduction of the Politburo’s Resolution No. 50-NQ/TW dated August 20, 2019 on orientations to improve institutions and policies and enhance the quality and effectiveness of foreign investment through 2030, Hue said the Government will give priority to projects with advanced, new, clean technologies, modern governance, and high added-value.
The Government will diversify forms of investment and partners in a bid to increase connectivity between local and foreign investments in accordance with its orientations on economic restructuring, sustainable development, and development of an independent and resilient economy.
Foreign investment has played a positive role in socio-economic development in Viet Nam over the past more than 30 years, Hue emphasized.
Total registered capital rose to US$350 billion, up more than 20% annually during the past three decades and foreign-invested sector has been the fastest-growing domains.
The sector’s GDP shared rose to around 20% in 2018 from just 2.1% in 1989 and its products have been available in more than 200 countries and territories.
Over 100 business giants have invested in Viet Nam, making Viet Nam the third biggest recipient in Southeast Asian region. As of June 2019, Viet Nam lured 28,954 valid projects from 130 countries and territories with total registered capital of US$351.66 billion while the disbursed volume reached over US$200 billion.
Hue however, pointed out the quality and effectiveness of foreign investment remain limited as many of them are small-scaled, labor-extensive, and energy-consuming projects.
Projects with advanced technologies from the US and Europe only accounted for 6% while few foreign-invested businesses established research and development centers in Viet Nam.
The ratio of disbursed volume/total registered capital has been low, around 56% and budget contribution of the foreign-invested sector remains modest./.