Jan 15, 2019 / 14:07

New FDI strategy must prevent risk of dual economy in Vietnam: Deputy PM

The Hanoitimes - Vietnam’s Politburo, the supreme decision-making body in the country, would approve a new resolution on attracting FDI which encourages foreign investors’ long-term business commitment.

Deputy Prime Minister Vuong Dinh Hue expected Vietnam’s new FDI strategy to prevent the risk of having poor connections between the foreign and domestic sectors, usually known as the dual economy within the country.
Illusrative photo.
Illusrative photo.
At a meeting held by the Ministry of Planning and Investment (MPI) on January 14 discussing Vietnam’s next strategy to attract FDI until 2030, Hue mentioned a concensus among experts that the government is providing higher incentives to foreign-invested companies, leaving it difficult for domestic companies to compete in a fair manner. 

Hue requested the drafting group to include in the strategy new measures attracting high-quality FDI projects, while bolstering the internal strength of the domestic sector towards the development of an self-reliant and strong economy. 

At the meeting, Deputy Minister of Planning and Investment Vu Dai Thang said that foreign-invested companies have become an indispensable part of Vietnam’s economy after the country’s 30 years of opening-up. 

Thang informed that the Politburo, the supreme decision-making body in the country, is expected to approve a new resolution on attracting FDI. 

The resolution is expected to consider the FDI sector a vital part of the economy and encourages foreign investors committing long-term business in Vietnam. 

The new resolution would give priority to FDI projects enabling a strong linkage between foreign and domestic enterprises, supporting Vietnam to integrate deeper in the global value chain on the basis of multilateralism and diversification, in turn ensuring the economy’s independence and national security.