How to attract and retain technology corporations to Vietnam

According to the Deputy Minister of Planning and Investment, land infrastructure, human resources and institutional reform are breakthroughs that Vietnam needs to make immediately to attract and retain investors.

At the Government press conference on the afternoon of March 2, Deputy Minister of Planning and Investment Tran Quoc Phuong said that, in addition to reforming administrative procedures and improving the business environment, Vietnam needs to make three breakthroughs to attract investors and retain large technology corporations.

According to him, foreign investors are very interested in infrastructure, they have high requirements for land and transportation infrastructure. Therefore, Vietnam needs to speed up the progress of large-scale infrastructure projects that are being implemented.

The Land Law was passed by the National Assembly in early 2024, with many points to remove obstacles and promote investment attraction in the land sector. Mr. Phuong said that documents guiding the implementation of this law should be issued by the relevant ministries soon to meet investors' expectations.

Another breakthrough that Vietnam needs to make immediately to retain the "eagles" is human resources. According to the goal of human resource development, Vietnam strives to have 100,000 high-quality workers, including 50,000 semiconductor chip engineers to catch the wave of investment in this field. The Ministry of Planning & Investment and the Ministry of Education and Training are speeding up to soon submit this project to the Government.

"Investors have high demands on human resources. Vietnam has the advantage of abundant human resources and is in the golden population period, but it is necessary to focus on improving the qualifications and skills of workers," Mr. Phuong stated his opinion.

Deputy Minister of Planning and Investment Tran Quoc Phuong answers at the Government press conference on the afternoon of March 2. Photo: Pham Du — Deputy Minister of Planning and Investment Tran Quoc Phuong answers at the Government press conference on the afternoon of March 2. Photo: *Pham Du*

Finally, it is the institution. Deputy Minister Phuong assessed that new policies on land, bidding, immigration, visas, etc. have a positive impact on investor sentiment. However, the current institution needs to introduce more in-depth policies that encourage and motivate new fields, such as high technology and semiconductor chips.

"Policies need to be tightly designed, ensuring attractiveness and optimization to attract FDI capital," Mr. Phuong noted.

According to data from the Ministry of Planning and Investment, as of February 20, total foreign investment capital reached nearly 4.3 billion USD, an increase of 39% over the same period last year.

Newly registered capital alone doubled last year, reaching 3.6 billion USD. The reason, according to Deputy Minister Tran Quoc Phuong, is thanks to the 55% increase in the number of new projects and the large scale of investment capital (400-600 million USD).

"This is a signal showing the commitment of foreign investors to Vietnam. On the other hand, the high rate of capital and new projects will have a positive impact on growth," said Mr. Phuong.

Previously, at the regular meeting, the Prime Minister asked ministries and sectors to analyze what needs to be done to come up with solutions to attract and retain large, reputable corporations in the technology sector. He said "this is a task that needs to be carried out this year to achieve the goals of the entire term".

Vietnam is attracting more and more large corporations in the technology and semiconductor industries from the US, South Korea, Japan, etc. However, experts say that many opportunities from the capital flow shift trend have not been taken advantage of by Vietnam due to a lack of high-quality human resources and mechanisms.

Mr. Minh

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