Vietnam Implements New Strategy to Attract FDI

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Aug. 24 – According to the Ministry of Planning and Investment (MPI), the government has developed a new strategy on attracting foreign direct investment (FDI). Instead of just attracting a huge number of various investors, the new strategy is to tie on quality investors. The MPI aims to “create a breakthrough in the number of FDI projects and the investment quality.” So the focus will be on the quality investors and sustainability.

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Instead of compiling a strategy itself, the MPI will combine the different strengths of various sources (e.g. the society, multi-national groups, scholars and private businesses) and it will consult with domestic and international advisers. To evaluate this strength, an advisory council has been set up with leading Vietnamese and international scientists, who have practical experiences.

According to the director of the Foreign Investment Agency, Do Nhat Hoang, Vietnam has reached a point of time to get the step to quality and sustainability of FDI flow.

“In the first phase of opening the doors to attract FDI, due to the lack of investment capital for many fields and branches, Vietnam encouraged investments into all the fields and at any scales,” Hoang said. But for the future Vietnam has to find and set up “the solutions which can harmonize the high growth rate and sustainable development.”

He said it because right now, MPI’s experts have pointed out that there is no long-term strategy on attracting FDI in Vietnam. Furthermore, he added that more capital and technology into the fields and the branches where the public-private partnership (PPP) mode has not been implemented yet should be attracted to attract FDI. Additionally it is important to attract investments into the manufacturing sector because it can bring high added value to the country.

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