Vietnam encourages Chinese investment in strategic infrastructure development

Vietnam is urging Chinese firms and investors to take a more active approach to investing in and developing key infrastructure projects, including railways and highways. 

Prime Minister Pham Minh Chinh. Photos: Nhat Bac

"Chinese investors have an excellent opportunity to expand their operations, improve product quality, and actively contribute to Vietnam's hard and soft infrastructure development. China's experience shows that substantial investment in infrastructure development is essential."

Prime Minister Pham Minh Chinh made the remarks at the Vietnam-China Trade and Investment Cooperation Forum held today [June 28] in Beijing. 

The country also encourages the establishment of public-private partnerships to foster collaboration in this regard.

Chinh stressed the importance of finding optimal solutions to create favorable conditions for investors and researchers to contribute to bilateral relations between Vietnam and its partners, especially by facilitating effective investment in Vietnam.

He called on the authorities of both countries to continuously review and refine legal frameworks, mechanisms, and policies while improving the business environment to create favorable conditions for businesses and stimulate investment and trade.

The Prime Minister also underscored the need to establish a special working group on trade and investment to advance these activities with more substantive and effective results.

In terms of the fundamental factors driving Vietnam's development, Chinh outlined three pillars: building a socialist rule of law state, fostering socialist democracy, and developing a market economy with a socialist orientation.

"Placing people as the focus, subject, goal, resource, and driving force for development is a central guiding principle. This approach emphasizes the importance of balanced progress, equity, social security, and environmental protection rather than pursuing pure economic growth at the expense of these factors," Chinh said.

Additionally, Vietnam's strategy involves three strategic breakthroughs in institutions, human resources and infrastructure.

The effective implementation of the National Master Plan and the development of six socio-economic regions in the country aim to identify and capitalize on distinct potentials, outstanding opportunities, and competitive advantages while addressing conflicts, challenges, constraints, and weaknesses.

"The goal is to build an independent and self-reliant economy that is proactively and actively integrated into the global community through an extensive, comprehensive, substantial and effective approach," he said.

Overview of the forum.

At the same time, the Government remains steadfast in its commitment to maintaining macroeconomic stability, controlling inflation, fostering growth, and ensuring key economic balances.

In the current environment, Vietnam continues to successfully manage inflation while promoting growth drivers such as consumption, investment, and exports and addressing challenges faced by businesses.

Regarding bilateral economic, trade and investment relations between Vietnam and China, the Prime Minister underscored the immense potential to set new records based on political trust and historical ties.

Echoing the sentiments of Chinese Premier Li Qiang, Chinh said that the huge Chinese market of 1.4 billion people is ready to accept high-quality Vietnamese products.

To further penetrate the Chinese market, Vietnamese enterprises are encouraged to step up their efforts to improve the quality of goods.

The Prime Minister outlined directions and solutions to attract investment and boost trade between Vietnam and China in the near future, emphasizing the selective, effective and sustainable attraction of foreign direct investment (FDI), with quality, efficiency, technology and environmental protection as key evaluation criteria.

"Specific mechanisms and policies will be reviewed and implemented in trade to encourage and promote more balanced trade between the two countries, particularly regarding agricultural imports from Vietnam. The promotion of border trade and the exploration of suitable border trade zones will also be pursued," he said.

Meanwhile, border gates will be upgraded and the smart gate model will be deployed and replicated, as exemplified by the recent establishment of a smart border gate model between Lang Son (Vietnam) and Guangxi (China).

Chinh called on Chinese investors to continue investing in Vietnam, ensuring an open and conducive investment environment.

"The Government is committed to fulfilling its promises with a focus on effectiveness, ensuring a fair and equitable environment of benefit and risk sharing, and mutual success," Chinh stressed. This commitment reflects the dedication of leaders from both countries.

China's Vice Premier Liu Guozhong.

Vietnam remains a major destination for Chinese investors in SEA

At the forum, China's Vice Premier Liu Guozhong acknowledged that with the continued growth of economic cooperation, trade, and investment, political trust between the two countries has strengthened. Vietnam has become China's fourth largest trading partner in the world, and bilateral trade is expected to reach US$175 billion by 2022.

As China is the largest trading partner of ASEAN, of which Vietnam is an active member, the country accounts for a significant proportion of the total trade volume between China and ASEAN. Chinese enterprises are increasingly investing in Vietnam, and Vietnam continues to be one of the most important investment destinations for Chinese enterprises within the ASEAN region, he said.

China is willing to work with Vietnam to make full use of the China-ASEAN Free Trade Agreement while stressing the importance of achieving a bilateral trade balance, he continued.

Liu also stressed that there is ample room for cooperation and development of supply chains between China and Vietnam. To that end, China is committed to supporting and organizing many promotional, investment, and business cooperation efforts to boost investment in Vietnam.