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Jul 23, 2020 / 17:41

Vietnam remains selective in attracting FDI projects

This is the right time for Vietnam to adopt a selective approach in attracting FDI inflows to better meet its needs, said Deputy Prime Minister Pham Binh Minh.

Vietnam remains selective in attracting foreign direct investment (FDI) projects, with efficiency, use of advanced technology and environment-friendliness being the main criteria, according to Deputy Prime Minister Pham Binh Minh.

 Deputy Prime Minister Pham Binh Minh at the meeting. Photo: VGP. 

Priorities would be given to projects using new and green technologies, with high added value, modern corporate governance, high spillover effects, ensuring technology transfer and being integrated with global supply and production chains, Minh said at a meeting of the government’s task force specialized in FDI attraction on July 23.

According to Minh, who heads the task force, Vietnam has been widely seen as an attractive investment destination, mainly thanks to its existing competitive advantages, strong reform efforts, and effective anti-Covid-19 measures.

Minh said this is the right time for Vietnam to adopt a selective approach in attracting FDI inflows to better meet its needs. However, in order for the country to get the right projects, breakthrough measures and actions are required, Minh stated.

 Overview of the meeting. Photo: VGP. 

In the meantime, the government remains supportive of the local business community and other economic components, Minh asserted.

For the remaining months of 2020, the task force would focus on three main activities which are promoting investment activities; proposing new policies for investment; and disseminating the image of Vietnam and its business environment.

Prime Minister Nguyen Xuan Phuc on May 23 agreed to set up a task force that will help the country prepare for new wave of FDI inflows in the post-Covid-19 period.

FDI commitments to Vietnam in the January – June period stood at US$15.67 billion, down 15.1% year-on-year.

Year to June 20, 1,418 new projects have been approved with committed capital of a combined US$8.44 billion, down 17.7% in the number of projects but up 13.9% in capital year-on-year. In addition, 526 existing projects have been injected an additional US$3.7 billion, up 26.8% in capital.   

Investors have poured money into 18 fields and sectors, in which manufacturing and processing led the pack with over US$8 billion, accounting for 51.1% of the registered tally. Electricity production and supply came second with US$3.95 billion, or 25.2% of the total, followed by wholesale and retail with US$1.08 billion, real estate with US$850 million.