Vietnam is an attractive investment destination
At a government press conference on March 2, in response to questions from the press about solutions to attract major investment projects to Vietnam, especially technology investment projects and large enterprises, Deputy Minister of Planning and Investment Tran Quoc Phuong said that besides administrative procedure reforms and improving the business environment, Vietnam needs to make three breakthroughs to attract investors and retain leading global technology corporations.
Deputy Minister of Planning and Investment Tran Quoc Phuong (Photo: VGP)
Deputy Minister Tran Quoc Phuong said that foreign investors see and assess the potential and prospects of Vietnam’s economy in the coming years. Vietnam is a highly attractive destination.
Regarding attracting FDI, in the first two months of this year, registered investment capital reached $4.29 billion, up 38.6%, a very high figure compared to the same period. “Usually when reporting, the percentage is already frightening, but the 38.6% increase is a good sign and shows that foreign investors are very interested. Disbursement is also very positive, increasing by 9.8% – equivalent to $2.8 billion, which shows the specific commitments of foreign investors in Vietnam,” Deputy Minister Tran Quoc Phuong emphasized.
A noteworthy point about foreign investment capital in Vietnam, according to Deputy Minister of Planning and Investment, is the very high proportion of new capital and new projects. This is a good signal and it is expected that this new capital will impact our growth in 2024 and 2025.
Three sectors of interest to foreign investors
Regarding breakthrough solutions to attract large projects and major investors to Vietnam, Deputy Minister Tran Quoc Phuong stated: The Ministry of Planning and Investment is aware of the responsibility in attracting foreign investment, especially large enterprises and projects in the fields that we are interested in, especially science and technology, innovation, and particularly the areas that we discussed last year – semiconductor chips as well as new industries.
“There are three areas that foreign investors are interested in Vietnam. First is infrastructure and land. For large projects, the demand for land is very high. Investors have very high requirements for infrastructure. Therefore, the solution for land and infrastructure is that we focus on continuing to improve and accelerate the progress of large infrastructure projects as set out in the construction implementation, and especially to promptly implement the guiding documents in the early days when the Land Law takes effect. This is not only what Vietnamese people expect and care about, but also what foreign investors eagerly anticipate. Because the Land Law has many new points, it removes obstacles to promoting investment and increasing trade,” Deputy Minister Tran Quoc Phuong said.
Illustrative photo
The second field that needs breakthrough solutions is human resources. Deputy Minister Tran Quoc Phuong stated: “Although in the projects directed and approved by the Prime Minister and the Government, such as striving to train about 100,000 workers, laborers as well as engineers in the fields of innovation and semiconductor chips, including 50,000 specifically for the semiconductor chip industry, the Ministry of Planning and Investment and the Ministry of Education and Training are urgently completing this project to submit to the Prime Minister, to train this high-quality labor force soon. With large-scale foreign investors, people have very high demands for human resources. We have the advantage of abundant human resources, still in the golden population period. But what we need to focus on more is the qualification and skills of the labor force. This is what the Government, the Prime Minister is very concerned about, and all ministries must work together to quickly improve the qualifications of the Vietnamese labor force. Through that, we can improve the quality of growth in labor productivity.”
The third area is institutional reforms. Deputy Minister Tran Quoc Phuong said that in recent times, the Government has submitted and the National Assembly has passed many new breakthrough policies that have positive impacts on growth and investment attraction, such as the Land Law, the Bidding Law, and other laws. Regulations on entry and exit or visa procedures also have very positive impacts on the psychology of investors when coming to Vietnam. “What is even more important that we need to study and focus on more deeply are policies that encourage and create the maximum conditions for large-scale investors to carry out large projects in Vietnam, with attractiveness and optimization to attract foreign investors,” Deputy Minister Tran Quoc Phuong said.
In summary, there are three main breakthrough policy groups that need to be implemented in the coming time. Among them is always correct and investors are always interested in improving the investment and business environment, especially with administrative procedure reforms.
