Image: VGP/Nhat Bac
Speaking at the event, Prime Minister Pham Minh Chinh said that the overall assessment of the world and regional situation is very volatile and unpredictable, with more difficulties and challenges than opportunities and advantages, with risks of differentiation, division, trust crisis, energy crisis, food crisis. The Prime Minister expressed hopes that the situation will be more favorable in the future, while affirming that Vietnam will not be subjective, neglectful, but always calm, maintaining resilience and firmness to be ready to respond to any situation, difficulties, and challenges that may arise.
At the same time, the Government of Vietnam always listens, shares with its partners, investors, and contributes to a peaceful, stable, cooperative, and developing environment, working together, benefiting together, winning together, and developing together. “I have never refused to meet any business association if I am present in Hanoi,” affirmed the Prime Minister.
“We have confidence in FDI businesses. The second confidence is that Vietnam has diplomatic relations with more than 193 countries, including comprehensive strategic partnerships or strategic partnerships with all 5 permanent members of the United Nations Security Council, 7 G7 member countries, and 16 G20 member countries; signed 16 FTAs with more than 60 countries. The third confidence is our belief in unity and harmony within the Party, the political system, and the people, national unity, and international solidarity. The fourth is confidence in the nation’s tradition that is more pressure, more effort. The fifth confidence is the effort of businesses, people, and the state to overcome difficulties and challenges,” shared the Prime Minister.
The Prime Minister said that in the context of great difficulty and challenge, thanks to the effort and determination of the entire political system, the business community, and the people under the leadership of the Party, Vietnam’s socio-economic situation continues to recover positively, achieving many important results in various fields, as a bright spot of the global economy.
Many reputable international organizations have highly appreciated the results and prospects of Vietnam’s economy. ADB forecasts Vietnam’s growth in 2024 to be 6%, HSBC forecasts 6.3%; Standard Chartered Bank forecasts 6.7%; S&P forecasts 6.8%…
Especially, despite the global FDI trend declining, Vietnam remains a bright spot in attracting FDI. In 2023, FDI attraction reached nearly USD 36.6 billion, up 32.1%; realized FDI capital reached nearly USD 23.2 billion, up 3.5%.
In the first 2 months of 2024, FDI attraction reached USD 4.3 billion, up 38.6%; realized FDI capital reached USD 2.8 billion, up 9.8%. As of the end of February 2024, there are still over 39.5 thousand effective FDI projects, with a total registered capital of over USD 473 billion. There are 145 countries and territories investing in Vietnam. In addition, Vietnam also promotes outbound investment and effective reception.
The investment and business environment continues to be improved, the business environment ranking increased by 12 levels in 2023 according to the evaluation of the Economic Magazine (EIU). The global innovation index has been raised (ranked 46/132, up 2 levels from 2022 according to the WIPO evaluation). The value of Vietnam’s national brand reached USD 431 billion, ranked 32/100 strong national brands in the world.
The Prime Minister emphasized that the FDI sector, not only in terms of quantity but also makes important contributions to improving the quality of Vietnam’s economy.
Accordingly, the FDI sector is an important impetus to promote innovation, improve legal quality, mechanisms, policies, national management capacity. Investment of FDI enterprises is an important resource, both supplementing capital and promoting economic restructuring, creating employment, livelihoods for people, and producing high-quality products. The operation of an increasing number of multinational corporations, large-scale, modern technology contributes to upgrading technology, management skills, improving Vietnam’s position in the global supply chain.
In addition to the limitations, constraints, difficulties, and challenges in the economy in general, the FDI sector also has certain shortcomings and limitations such as investment quality, technology level, and technology transfer in some projects is still limited; the rate of localization is still low; the connection between the domestic enterprise area and the FDI area is still not really tight, effective, and sustainable. The quantity and scale of investment projects in high-tech, green, clean, and environmentally friendly are still modest. There are still some localities that have not met the full demand for high-quality labor for large-scale FDI projects, high-tech, arising labor relations…
Analysing the lessons learned, the Prime Minister believes that it is necessary to closely follow the international and domestic situation to proactively adjust appropriate mechanisms and policies to attract FDI, ensuring flexibility, timeliness, efficiency, and suitable for the situation of Vietnam and the global trend. It is necessary to focus on building and regularly reviewing, amending, supplementing, and improving the investment and business environment, ensuring attractiveness, publicity, transparency, competitive ability in the region and internationally.
Together with that, it is necessary to attract selective investment, prioritize high-tech projects, have great spread, environmentally friendly, motivate digital transformation, green transformation, circular economic development, and emerging industries, sectors (semiconductor, artificial intelligence, hydrogen…) and participate deeply and extensively in regional, global production, and supply chains.
Transitioning growth model from “brown” to “green”
The Prime Minister stated that Vietnam identifies green growth as one of the two core elements (along with digital transformation) of the process of restructuring the economy, transforming the growth model towards improving productivity, quality, efficiency, competitiveness, and rapid, sustainable development.
Firmly refusing the model of “growth first, cleanup later”; not aiming for growth at any cost; transforming the growth model from “brown” to “green”; mobilizing and effectively utilizing internal and external resources for the development of green ecosystems, circular economy, low carbon, energy transition…
Along with the strong development of the 4.0 industrial revolution, this is an inevitable trend and the goal of every country, a new growth driver; no country can stand outside this process.
Vietnam has actively and responsibly participated in promoting green growth and sustainable development. Vietnam has committed at COP26 to achieve zero net emissions by 2050; participating in the Asia Zero Emissions Coalition (AZEC); Joint Energy Transition Partnership (JETP) Declaration…
Vietnam has issued many strategies, plans, and plans for green transformation such as: Climate change strategy; Green growth action plan; Green energy conversion action plan, low carbon emissions, and methane gas reduction; Sustainable forestry development program; Power plan VIII…
Vietnam has accelerated the implementation of the Sustainable Development Project of 1 million ha of high-quality intensive rice, low-max Delta; implemented the “Large-scale wood production plantation development plan from 2024 – 2030”, by 2030, the total area of large-scale wood production plantations reached 1 million hectares, contributing to protecting the ecological environment, adapting to climate change, and mitigating natural disasters…
Desire for FDI businesses to accompany, support Vietnam in 5 factors
In the coming time, the Prime Minister proposes and desires that FDI businesses continue to accompany and support Vietnam in 5 factors: Capital, institutions, technology, management, and human resource training.
The Prime Minister called on FDI businesses, foreign investors to accompany Vietnam in realizing green and sustainable development with the spirit of “Three pioneers”.
Firstly, pioneering in awareness, thinking, and action, innovating thinking, ways of thinking, and doing about green growth.
Secondly, pioneering in technology transfer, promoting research and development, innovative innovation for green growth.
Thirdly, pioneering in the implementation of specific green growth projects, renewing traditional growth drivers and supplementing new growth drivers.
Along with that, the Prime Minister wishes that international organizations, development partners continue to support and accompany Vietnam in the spirit of “Three boosts”.
Firstly, promoting cooperation, sharing experiences, and consulting policies for Vietnam, focusing on priority areas such as green transformation, digital development.
Secondly, enhancing financial support, technical support for Vietnam, focusing on projects with spread, breakthroughs, turning the situation, searching for and connecting with suitable partners, focusing on mobilizing and effectively utilizing green financial resources.
Thirdly, enhancing cooperation in training, developing human resources for Vietnam, especially high-quality labor force to serve key economic sectors, important and emerging areas.
The Prime Minister affirmed that Vietnam is committed to “three assurances”, promoting “three breakthroughs”, and implementing “three enhancements”.
“Three assurances” include: (i) Ensuring the legitimate rights and interests of enterprises in general and FDI in particular, ensuring stable and green growth-oriented FDI enterprises and major trends of the era such as climate change response; (ii) Ensuring independence, sovereignty, unity, territorial integrity, political stability, social order, stable policies for investors to be reassured; (iii) Ensuring stable energy towards green transformation, developing green transformation ecosystems, digital development.
The Prime Minister affirmed not letting power shortage with many different solutions, including the implementation of direct power purchase mechanism.
At the same time, Vietnam promotes 3 strategic breakthroughs including: (i) Breakthrough in mechanism to serve green transformation, digital transformation; (ii) Breakthrough in economic and social infrastructure, healthcare, transportation, education, green, digital infrastructure; (iii) Breakthrough in human resources.
Vietnam implements “three enhancements” including: (i) Enhancing trust between businesses and the Government and local authorities; (ii) Enhancing transparency, publicity, equality, anti-corruption, and negativity; (iii) Enhancing support for rapid, sustainable development businesses, focusing on green transformation, digital transformation, public-private cooperation.
The Government of Vietnam is committed to always accompany and create favorable conditions for the business community, domestic and foreign investors with the spirit of: “Harmonious interests, shared risks”; “working together, winning together, and enjoying together”.
“What cooperation has been and not been, the most important thing is to share, to understand, then any big or small obstacles can be solved,” the Prime Minister said and suggested that the business community, investors “should do what you say, commit to what you have done, and achieve substantial results that can be measured.”
