Econ
FDI disbursement to reach record high of 17 billion USD in 2017
This information is announced at the Workshop “Supporting industry development – Strengthening the linkage between FDI enterprises and domestic enterprises” on December 15.
According to the Foreign Investment Agency, the Foreign Direct Investment (FDI) in Vietnam is increasing in the remaining month of 2017. As such, registered FDI in 2017 may go up to 35 billion USD, the highest number over the past 10 years, while the disbursement progress reached a record high of 17 billion USD.
Recently the success in attracting FDI mainly comes from the government effort in improving the investment environment. Economic indicators have been on the positive trend which received great attention from foreign investors comparing to neighboring countries. Investors have confidence in policies and the instructions of the government in present and also in the future, as well as the attraction of Vietnam’s market.
Even though, representative of Foreign Investment Agency has been cautious in evaluating results of FDI attraction, as 2017 is not over yet and the number of FDI may be higher than estimation. In order to strengthening the linkage between FDI enterprises and domestic enterprises, with an aim for supporting industry development, the Foreign Investment Agency is collecting recommendations and suggestions from experts to set up strategy to attract FDI to Vietnam in new era.
Prof. Nguyen Mai, the Chairman of Vietnam’s Association of Foreign Invested Enterprises (VAFIE), the government should focus on 3 issues: Firstly, the linkage between domestic and foreign enterprises through appropriate preferential treatments; Secondly, supporting domestic enterprises in improving management capabilities, technologies and human resources; Thirdly, encouraging the duplication of successful model such as Samsung.
With regard to the linkage between FDI enterprises and domestic enterprises, experts said it is important that both side shows the willingness for cooperation. According to representative of Samsung Corporation Kim Yong Seok, there was case that Vietnamese enterprises requested Samsung’s commitment in taking in products in investing new technologies. Samsung did not accept this request and stressed that it only take products with high quality.
Upon the request of the Prime Minister, Samsung will focus on researching and training Vietnamese human resources working in the Corporation, in which to send Vietnamese engineers to Korea for training. Samsung will also increase the number of Vietnamese enterprises to take part in its supply chain to 29 tier 1 vendors by the end of this year. After 3 years, the number is expected to rise to 50 enterprises.
Starting this year, Samsung will expand its support to hi-tech industries, helping local firms to produce sophisticated electronic parts and be part of Samsung’s global supply chain for hi-tech products. It is aimed to help enterprises improve their production process and meet the criteria for supplying products and components to Samsung factories with products’ error ratio decreasing by an average of 25 per cent and production capacity increasing by 30 per cent.
A total of 215 enterprises, including 25 tier-1 vendors and 190 tier-2 vendors, are currently participating in the supply chain for Samsung’s factories in Vietnam. Mr. Shin Jong Kyun said, Samsung is very interested in the telecommunication market in Vietnam. The Prime Minister said information & technology is one of the priority of Vietnam, as such, Vietnam will always be supportive to the Corporation to solve any arising problems. Samsung Vietnam has achieved a significant breakthrough in increasing the localization rate of its products from 35 per cent in 2014 to 57 per cent at present.
Registered FDI in 2017 may go up to 35 billion USD, the highest number over the past 10 years, while the disbursement progress reached a record high of 17 billion USD.
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Even though, representative of Foreign Investment Agency has been cautious in evaluating results of FDI attraction, as 2017 is not over yet and the number of FDI may be higher than estimation. In order to strengthening the linkage between FDI enterprises and domestic enterprises, with an aim for supporting industry development, the Foreign Investment Agency is collecting recommendations and suggestions from experts to set up strategy to attract FDI to Vietnam in new era.
Prof. Nguyen Mai, the Chairman of Vietnam’s Association of Foreign Invested Enterprises (VAFIE), the government should focus on 3 issues: Firstly, the linkage between domestic and foreign enterprises through appropriate preferential treatments; Secondly, supporting domestic enterprises in improving management capabilities, technologies and human resources; Thirdly, encouraging the duplication of successful model such as Samsung.
With regard to the linkage between FDI enterprises and domestic enterprises, experts said it is important that both side shows the willingness for cooperation. According to representative of Samsung Corporation Kim Yong Seok, there was case that Vietnamese enterprises requested Samsung’s commitment in taking in products in investing new technologies. Samsung did not accept this request and stressed that it only take products with high quality.
Upon the request of the Prime Minister, Samsung will focus on researching and training Vietnamese human resources working in the Corporation, in which to send Vietnamese engineers to Korea for training. Samsung will also increase the number of Vietnamese enterprises to take part in its supply chain to 29 tier 1 vendors by the end of this year. After 3 years, the number is expected to rise to 50 enterprises.
Starting this year, Samsung will expand its support to hi-tech industries, helping local firms to produce sophisticated electronic parts and be part of Samsung’s global supply chain for hi-tech products. It is aimed to help enterprises improve their production process and meet the criteria for supplying products and components to Samsung factories with products’ error ratio decreasing by an average of 25 per cent and production capacity increasing by 30 per cent.
A total of 215 enterprises, including 25 tier-1 vendors and 190 tier-2 vendors, are currently participating in the supply chain for Samsung’s factories in Vietnam. Mr. Shin Jong Kyun said, Samsung is very interested in the telecommunication market in Vietnam. The Prime Minister said information & technology is one of the priority of Vietnam, as such, Vietnam will always be supportive to the Corporation to solve any arising problems. Samsung Vietnam has achieved a significant breakthrough in increasing the localization rate of its products from 35 per cent in 2014 to 57 per cent at present.
