Vietnam should have savvy Foreign Direct Investment (“FDI”) policies that direct capital to modern and environmentally friendly technologies and promote technology transfer to make local firms more competitive.
IT good sign that the manufacturing and processing industries are drawing significant FDI sums. Statistics compiled by the Vietnam Foregin Investment Agency show that in the first quarter of 2017, nearly 85 percent of registered FDI, or 6.54 billion USD, went to manufacturing and processing industries; FDI surged 91.5 percent over the same period last year to 7.71 billion USD. FDI accounted for 50 percent of the country’s industrial output and 70 percent of exports.
In Viet Nam, FDI has a significant role to play in promoting domestic industries and driving economic growth.
Therefore, how to attract Foreign Direct Investment?
In the opinions of experts:
- FDI has a significant role to play in promoting domestic industries and driving economic growth;
- Vietnam would need to have policies that encourage FDI inflow into high quality hi-tech production and technology transfer;
- It is important that FDI attraction is targeted at promoting technology transfer and improving competitiveness;
- Policies should direct investment to environmentally friendly and hi-tech sectors;
- Rapid globalization and the fourrth industrial revolution requires Vietnam to be selective in FDI attraction, with a focus on quality rather than quantity;
- Tt’s time Vietnam focused on attracting investment from giant corporations in the world;
- the Government hastening efforts to improve the investment climate, Vietnam is becoming more attractive to foreign investors;
- Focus on selecting the best projects.
However, the problem is that the licensing of many FDI projects is now under local authorities, with the result that many poorly-performing projects have been approved.
This showed that the Government should act fast to issue regulations that direct FDI attraction and other mechanisms towards enhanced supervision and project efficiency, experts said.