Opportunities and challenges to attract investment in the new era

Renewable energy is in dire need of investment capital. Photo: Khac Kien

Many solutions proposed

At the closing session of the 9th session on February 19, the National Assembly passed a Resolution supplementing the socio-economic development plan for 2025 with a growth target of 8% or more, contributing to creating a solid foundation for achieving double-digit growth in the following years.

To achieve the growth target, many breakthrough and revolutionary solutions have been proposed by the Party and the State, including: streamlining the apparatus, merging provinces and cities; cutting down on business conditions; strongly promoting public investment... Opening up unprecedented economic spaces and investment and business opportunities in many industries and fields.

Editor-in-Chief of Investor Magazine Pham Duc Son. Photo: Hoang Anh

At the workshop "Investment opportunities in the new context", Editor-in-Chief of Investor Magazine Pham Duc Son said that 2025 is of special importance, being the final year of implementing the 5-year socio-economic development plan 2021 - 2025 and preparing for the beginning of a new era of development of the country.

In his latest article on the private economy, General Secretary To Lam has shown a great vision for the era of the rise of Vietnamese private enterprises. In it, he affirmed the effective protection of property rights, ownership rights, freedom of business rights and the guarantee of contract enforcement of private enterprises.

The Politburo issued Resolution No. 57-NQ/TW identifying the development of science, technology, innovation and national digital transformation as "top important breakthroughs" in the country's modernization, contributing to realizing the aspiration of making Vietnam a developed, high-income country by 2045.

In the new context, investors and businesses are required to identify, analyze, evaluate and forecast challenges and opportunities, in order to develop appropriate strategies and decisions on investment, production and business.

Professor, Dr. Nguyen Mai - Chairman of the Association of Foreign Investors. Photo: Khac Kien

Professor, Dr. Nguyen Mai - Chairman of the Association of Foreign Investors suggested that investors and businesses need to have a perspective and awareness that the transition to a digital economy, digital enterprises, green production and business is an important solution in the new context.

Because if we do not change the growth model, we will not ensure the creation of advantages to exploit the potential of each type of production, business and service according to the new trend of using science and technology and human resources to create high productivity and quality, economic efficiency of production and business, and we will even be eliminated not only in the world market, but also in the domestic market.

"Proactively participate in the global supply chain by innovating technology, manufacturing, and smart business to fully meet the criteria of FDI enterprises" - Dr. Nguyen Mai said.

High target but feasible

Giving his opinion, Director of Digital Transformation Services and AI Applications at FPT Digital Doan Huu Hau said that the uneven recovery after the pandemic among countries, along with different development orientations, leads to different challenges and opportunities. This is an opportunity because Vietnam has stable and higher-than-average economic growth.

Director of Digital Transformation Services and AI Applications at FPT Digital Doan Huu Hau. Photo: Khac Kien

Digital transformation helps promote economic growth and attract investment capital, increase business efficiency, optimize operations, and ways to deliver goods to customers, thereby improving national competitiveness.

With KRX, transparency and security are enhanced, allowing for continuous and immediate recording of transactions. In addition, digital transformation helps develop potential sectors such as real estate (protech), technology (semiconductor manufacturing and AI), renewable energy.

The retail group is also promising but has few products and relatively high prices, so it is more suitable for the taste of institutional investors. At the bottom, the technology stock group is also worth watching. This group has increased rapidly last year and is in the adjustment phase, after which it has the potential to increase in price.

Dr. Can Van Luc - Chief Economist of BIDV. Photo: Khac Kien

Experts say that the Government's target of an economic growth rate of 8% or more is considered a very high target but not impossible. Dr. Can Van Luc - Chief Economist of BIDV pointed out 3 important moves of the Government to promote in the recent past, one is to assign growth targets to each locality, even each industry.

Second, the Government is more determined and drastic in fighting waste. If 1,200 land and real estate projects are resolved, it will make an important contribution to the Vietnamese economy.

Third, maintaining export growth momentum, around 10% is already a success, but the important thing is to reduce the deficit in trade in services, mainly tourism and transportation. We must definitely focus on doing better with the tourism industry.

According to assessments, tourism last year grew and recovered better than the average of the ASEAN region. However, the quality of tourism is not high or good. Businesses need to be more skillful in stimulating tourism, and pay attention to developing logistics, infrastructure, and customs procedures.

Next, the determination to accelerate public investment and private investment will be the focus to support economic growth this year and the following years. Regarding promoting consumption, we should carefully refer to the 8 consumer stimulus solutions recently issued by China.

Some solutions can be learned from experience such as promoting healthy securities and real estate to stimulate consumer demand. Good investors in securities and real estate will stimulate consumer demand.

Second is to create more jobs for workers, which also increases consumption. Third is to create new features in tourism. Fourth is to drastically reform administration. Just reducing the time it takes to license a project from 1 year to 3 months or 6 months, which has greatly contributed to growth. Finally, do not let the system become clogged.

Source: https://kinhtedothi.vn/co-hoi-xen-thach-thuc-hut-dau-tu-trong-ky-nguyen-moi.html