The private sector holds significance for Vietnam's economy, while the FDI sector only accounts for 25% of total social investment, stated Nguyen Chi Dung, minister of planning and investment.
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Over 30 years of FDI attraction, the linkage between domestic and FDI sectors left much to be desired, while the development of supporting industries and efficiency of technology transfer activities remained at a low level, Dung said at a conference on September 30.
According to Dung, there should be incentive policies to support the FDI sector in the coming time as foreign invested activities are one of the economy's components.
Dung stressed the necessity to identify clearly shortcomings of the FDI sector, whether they belong to policies, regulations or the implementation process. Once completion, there should be appropriate measures to tighten the process of investment certificate issuance and foreign project management, ensuring compatibility with Vietnam's new strategy for attracting FDI in the future.
With regard to the domestic sector, the government gives priority to supporting the development of local enterprises to realize their full potential. Only when they have reached a certain stage of development can the linkage between domestic and foreign invested companies be improved.
Recently, Vietnam has issued the Law on Support for Small and Medium Enterprises (SMEs) and is under the process of establishing an innovation center. The move is aimed to facilitate technologies development and provide support policies for domestic enterprises, Dung added.
Additionally, Dung said there should be appropriate incentives and conditions for Vietnamese enterprises to acquire foreign invested companies, enabling the former to obtain new technologies and move up in the global value chain.
