New approach to attracting FDI capital into Vietnam

Record high FDI inflows into our country in the context of the economy facing many external challenges show Vietnam's resilience and attractiveness.

Representatives of state management agencies on FDI, experts, scientists, and business leaders attended the workshop. (Source: UEB)

On October 31, the Central Economic Committee coordinated with the Central Theoretical Council and the University of Economics, Vietnam National University, Hanoi to organize a scientific workshop with the theme "New approaches and development orientations for the foreign-invested economic sector in Vietnam's socialist-oriented market economy".

The event was attended by scientists, economic experts, representatives of businesses and state management agencies.

The workshop aims to provide scientific arguments and practical foundations, and focus on discussing new requirements for the foreign direct investment (FDI) economic sector, with the goal of perfecting institutions and policies and improving the quality and effectiveness of foreign investment cooperation in the new period, with a vision to 2045. The workshop aims to contribute to the development of new policies in the context of strong fluctuations in the global economy, including factors such as geopolitics, technology and environment.

Positive signals in attracting FDI capital

Deputy Head of the Central Economic Commission Nguyen Hong Son. (Source: UEB)

Speaking at the workshop, Deputy Head of the Central Economic Commission Nguyen Hong Son said that after 5 years of implementing Resolution No. 39-NQ/TW and Resolution No. 50-NQ/TW, FDI capital flows into Vietnam have continuously increased, creating many positive values ​​for the economy, strongly promoting economic restructuring towards modernization.

The foreign-invested economic sector has become an important part of the economy, actively contributing to the country's socio-economic development.

Associate Professor, Dr. Nguyen Hong Son assessed that although 2023 is a challenging year, registered FDI capital in Vietnam increased sharply, reaching 36.61 billion USD (up 32.1% compared to 2022, while global FDI capital increased by only 3%); disbursed capital reached over 23 billion USD (accounting for 16.1% of total investment capital of the whole society).

According to a report by the Ministry of Planning and Investment, in 2023, the FDI sector will contribute 18.3 billion USD to the state budget (accounting for about 25.4% of total budget revenue) and export about 259.1 billion USD (equivalent to 73.1% of the country's export turnover), attracting an average of more than 360,000 additional workers each year.

Entering 2024, the positive trend of FDI capital continues to be recorded. Data for the first 9 months of 2024 shows that total FDI capital reached more than 24.78 billion USD, an increase of 11.6% over the same period in 2023; disbursed capital was about 17.3 billion USD, an increase of 8.9% over the same period in 2023.

It is expected that Vietnam will attract about 39-40 billion USD of FDI capital for the whole year of 2024. The record high FDI inflow into our country in the context of the economy facing many external challenges shows the resilience and attractiveness of Vietnam as an investment destination and trade partner.

Vice President of Vietnam National University, Hanoi Dao Thanh Truong. (Source: UEB)

Vice President of Hanoi National University Dao Thanh Truong said that in the context of the current world with unpredictable changes, increasingly fierce strategic competition, and a fragmented world economy that is reducing and reshaping international investment flows, Vietnam still emerges as a bright spot in the region attracting foreign investors.

Not only is Vietnam highly appreciated for its ability to integrate and adapt to progressive global development trends, especially the Green and Sustainable Development trend, it is also recognized for its extremely strong efforts in signing and implementing many free trade agreements, enhancing and upgrading strategic partnerships, contributing to promoting and expanding export markets, creating a dynamic trading environment to attract foreign investment.

Many international experts believe that with the strengths of a dynamic and proactively integrated economy, Vietnam possesses great potential and is facing great opportunities to enhance the country's position and identity in the international arena.

Head of the Economic Subcommittee, Central Theoretical Council, Former President of the Vietnam Academy of Social Sciences Nguyen Quang Thuan; Deputy Head of the Central Economic Commission Nguyen Hong Son; Vice Rector of the University of Economics, Vietnam National University, Hanoi Nguyen Anh Thu chaired the workshop. ((Source: UEB)

Associate Professor, Dr. Dao Thanh Truong emphasized that the above achievements cannot be achieved without mentioning the contributions of the economic sector with foreign investment capital to the development of Vietnam's socialist-oriented market economy in recent years.

Forum of economic experts

According to Associate Professor, Dr. Nguyen Hong Son, with the requirements and demands in the coming period, especially to achieve the goal of Vietnam being a developing country with modern industry and high average income by 2030; and becoming a developed country with high income by 2045, the issue of attracting, managing and effectively using FDI capital in particular and mobilizing, using and promoting financial resources in general for Vietnam is both an urgent and strategic requirement.

The Deputy Head of the Central Economic Commission emphasized that the workshop is an opportunity for representatives of state management agencies on FDI, experts, scientists, and business leaders to exchange, discuss, and gather opinions on attracting, managing, and using FDI in our country in the past time, contributing to helping the Central Economic Commission perform well its task of coordinating with relevant ministries, branches, and agencies to develop a Project to summarize 5 years of implementing Resolution No. 39-NQ/TW and Resolution No. 50-NQ/TW.

Chairman of the Council of the University of Economics, Vietnam National University, Hanoi Nguyen Truc Le spoke at the conference. (Source: UEB)

Chairman of the Council of the University of Economics, Vietnam National University, Hanoi Nguyen Truc Le suggested a number of key issues regarding investors' confidence in the business environment in Vietnam in the context of a volatile global economy; encouraging investment in high technology and innovation; developing renewable energy and green economy; enhancing technology transfer and linking FDI and domestic enterprises; improving the quality of human resources, minimizing transfer pricing and strengthening supervision; developing underdeveloped areas and balancing regions.

At the workshop, experts presented papers on many important issues such as summarizing outstanding achievements in attracting FDI in Vietnam over the past 35 years, such as the increasing number of projects and the creation of millions of jobs. At the same time, they discussed limitations such as transfer pricing, lack of transparency in FDI enterprises' operations and negative impacts on the environment.

Economist Pham Chi Lan contributed her opinion at the workshop. (Source: UEB)

The papers analyze the impact of transfer pricing on the Vietnamese economy, especially on tax revenue and competitiveness of domestic enterprises; the challenges that domestic enterprises face and solutions to ensure transparency; explore the favorable and difficult factors that foreign enterprises encounter when investing in Vietnam.

Experts' perspectives on current policies and achievements, limitations in attracting FDI; new directions for policies to develop the FDI sector to ensure sustainable development; necessary policies to optimize benefits from FDI, recommendations to strengthen linkages between FDI and domestic enterprises, creating added value for the economy.

Delegates discussed changes in investment motivations of FDI enterprises in the global political and economic context, and discussed opportunities and challenges that Vietnam faces.

Experts present papers at the workshop. (Source: UEB)

The workshop gathered many valuable opinions from delegates, helping to provide orientations for the development of the FDI sector in the coming period. The results of the workshop will contribute to the development of sustainable economic development policies, ensuring benefits for both domestic and foreign enterprises, as well as creating favorable conditions for Vietnam to continue to be an attractive destination for international investors.

Source: https://baoquocte.vn/cach-tiep-can-moi-de-thu-hut-nguon-von-fdi-vao-viet-nam-292105.html