Vietnam to prudently screen FDI

20-Jul-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Vietnam will attract foreign direct investment (FDI) projects in a selective manner in the coming years, stated minister of Planning and Investment Nguyen Chi Dung.

At a teleconference held today, July 18, on the Ministry of Planning and Investment’s performance in the first six months and plans for the rest of the year, Dung noted that Vietnam has recently received a large amount of FDI, putting pressure on the State management agencies to further control the quality of investment projects.

The ministry will not license investment projects that apply outdated technology, consume too much energy, pose a high risk of environmental pollution and show signs of origin fraud, the minister said.

As for localities that are facing challenges in developing the economy and attracting FDI, the ministry will allow them to license projects that use a large number of labourers but will require the application of environmentally friendly technology and efforts to save energy.

Dung asked localities to cautiously offer incentives to investors.

In addition to focusing on the selection of investors, the ministry will focus on the development of infrastructure, training of human resources and preparation of input materials to meet the demands of foreign investors, Dung added.

Many FDI firms operating in Vietnam have complained about the shortage of high-skilled manpower and the overloaded infrastructure in the country, which affects their production and business activities.

At the teleconference, deputy prime minister Vuong Dinh Hue also urged the ministry to choose only high-quality investment projects.

Early this month, the prime minister approved a plan to enhance the State management’s role in the fight against trade remedy evasion and origin fraud.

Deputy PM Hue said there will be no compromise for unlicensed investment, trade remedy evasion and origin fraud. He also asked the Ministry of Planning and Investment to intensify inspections of agencies that issue investment certificates and certificates of origin in a rampant manner.

In the first half of the year, the country attracted more than 1,700 new projects with total registered capital of $7.41 billion, up 26.1 percent in the number of projects but down 37.2 percent in terms of capital, according to statistics from the general Statistical Office.

However, the combined direct and indirect investment from China and Hong Kong surged in the period, reaching $7.5 billion, well above the $3.7 billion seen in 2017 and $5.8 billion last year.


Category: Economy, Vietnam

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