30 years of FDI attraction in retrospect

(VOVWORLD) - This year marks 3 decades of Foreign Direct Investment (FDI), a key contributor to Vietnam’s economic growth. Amid global uncertainty, geopolitical complexity, and rising protectionism, Vietnam is taking stronger steps to reform its FDI sector. 

30 years of FDI attraction in retrospect  - ảnh 1 (Photo: VNA)

Since the first foreign project invested in Vietnam in 1988, FDI has created a new form of capital attraction, contributing to economic growth and efficient use of domestic resources. It has also helped promote Vietnam’s national brands and global stature.

Impressive figures

The Foreign Investment Agency of the Ministry of Planning and Investment says that over the past 3 decades, there have been 26,000 FDI projects with a total registered capital of more than 320 billion USD. The FDI sector accounts for 25% of all social investment capital and 70% of Vietnam’s export turnover. In the first half of this year, FDI committed to Vietnam totaled 20 billion USD, 5% above the first half of last year. 87 countries and territories are invested in Vietnam. Economists say Vietnam is an attractive FDI destination because of its geopolitical stability and vibrant economy. Nguyen Cong Ai, Deputy Director General of KPMG, said: “In the past year, and the first months of this year, our company experienced a busy work schedule as we received investors who want to invest in Vietnam. Investor interest is huge, especially among investors from Northeast Asia.”

New approach to FDI attraction  

In the face of a changing global economy characterizedby growing protectionism and uneven foreign investment, Vietnam is set to reform its approach to FDI attraction. Professor Nguyen Mai, Chairman of Vietnam’s Association of Foreign Invested Enterprises, said:  “The country has changed. So has the world and global FDI. This requires us to change our orientation and policies of foreign investment attraction. FDI should be channeled in green, sustainable growth, future technology, artificial intelligence, and cloud computing. Investment should come from the countries with the most advanced technologies. We need to change our methods, from investment promotion and project verification to comprehensive reform of State management.”

As it did during the past 3 decades, Vietnam is fine-tuning its laws and policies and creating transparency and optimal conditions for investors. Economist Nguyen Minh Phong said: “Our integration and participation inglobal value chains are on the right track. We aim to attract enterprises whose products have high added value and who are ready to transfer technology to us within our capacity. Investment promotion should be more professional, targeting the development of technology and brands.”

Do Nhat Hoang, Director of the Foreign Investment Agency, said FDI should meet certain requirements for technologies and environmental protection:“In the new context, we have to attract investment selectively. Vietnam has adopted the Law on Investment, which regulates a level playing field for all economic sectors. We have joined many multilateral and bilateral economic agreements. We should set up technical barriers and choose the best possible FDI projects.”

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