Workers make electronic components at Manutronic Vietnam JSC in Bac Ninh province's Tien Son industrial park (Photo: VNA) Hanoi (VNA) – Theinflow of foreign direct investment (FDI) has helped Vietnam access advancedtechnology in the world, said Director of the Foreign Investment Agency (FIA)under the Ministry of Planning and Investment Do Nhat Hoang.
The official said the entry of FDIhas stimulated domestic investment, and the development of foreign –invested firmsalong with other economic sectors has enabled Vietnam to perfect its socialist-orientedmarket economy and integrate deeper into the world economy.
The FDI inflow also assistedVietnam in restructuring its economy, accessing and applying modern technologyand advanced business administration.
So far, a total of 334 billionUSD has been committed for 26,500 projects in Vietnam of which 184 billion USDhas been disbursed. Vietnam’s economic structure has also shifted from mainly backwardagriculture to advanced industrial production.
The foreign-invested sectorcontributed 58.2 percent of the processing-manufacturing industry and 50percent of the country’s total production value, while creating direct employmentfor 3.6 million workers and indirect jobs for more than 5 million others.
The presence of FDI firms haschanged the landscape in many regions. For example, the southern provinces ofDong Nai and Binh Duong, previously poor agricultural areas, have turned into industrialhubs thanks mainly for FDI firms. Those two provinces are also among theleading localities in attracting FDI.
However, despite its positiveinfluence, the FDI sector has not met expectations in technology transfer fortheir local counterpart. The sector also contains problems such as transferpricing and tax frauds. A number of FDI enterprises still use backwardtechnology and cause environmental pollution.
“I think the lesson here is toattract investment in a selective way, choosing projects using modern and hightechnology, consuming less energy, optimizing natural resources and not causingpollution,” Hoang said.
He added that Vietnam needs tomake optimal use of foreign capital and technology by adopting appropriatepolicies to facilitate linkages between foreign-invested and domesticenterprises.
In the context of the fourthindustrial revolution, in order to attract leading investors in the field ofinformation technology, Vietnam should review its legal framework, especially regulationson the hi-tech sector, while taking measures to assist domestic firms inupgrading their technology, the FIA director said.
According to Hoang, his agencyhas been assigned by the Ministry of Planning and Investment to review theInvestment Law and the Law on Enterprises, with the aim of removing overlappingbetween the Investment Law and other laws, and abolishing unnecessaryconditions in accessing market and doing business.-VNA
The official said the entry of FDIhas stimulated domestic investment, and the development of foreign –invested firmsalong with other economic sectors has enabled Vietnam to perfect its socialist-orientedmarket economy and integrate deeper into the world economy.
The FDI inflow also assistedVietnam in restructuring its economy, accessing and applying modern technologyand advanced business administration.
So far, a total of 334 billionUSD has been committed for 26,500 projects in Vietnam of which 184 billion USDhas been disbursed. Vietnam’s economic structure has also shifted from mainly backwardagriculture to advanced industrial production.
The foreign-invested sectorcontributed 58.2 percent of the processing-manufacturing industry and 50percent of the country’s total production value, while creating direct employmentfor 3.6 million workers and indirect jobs for more than 5 million others.
The presence of FDI firms haschanged the landscape in many regions. For example, the southern provinces ofDong Nai and Binh Duong, previously poor agricultural areas, have turned into industrialhubs thanks mainly for FDI firms. Those two provinces are also among theleading localities in attracting FDI.
However, despite its positiveinfluence, the FDI sector has not met expectations in technology transfer fortheir local counterpart. The sector also contains problems such as transferpricing and tax frauds. A number of FDI enterprises still use backwardtechnology and cause environmental pollution.
“I think the lesson here is toattract investment in a selective way, choosing projects using modern and hightechnology, consuming less energy, optimizing natural resources and not causingpollution,” Hoang said.
He added that Vietnam needs tomake optimal use of foreign capital and technology by adopting appropriatepolicies to facilitate linkages between foreign-invested and domesticenterprises.
In the context of the fourthindustrial revolution, in order to attract leading investors in the field ofinformation technology, Vietnam should review its legal framework, especially regulationson the hi-tech sector, while taking measures to assist domestic firms inupgrading their technology, the FIA director said.
According to Hoang, his agencyhas been assigned by the Ministry of Planning and Investment to review theInvestment Law and the Law on Enterprises, with the aim of removing overlappingbetween the Investment Law and other laws, and abolishing unnecessaryconditions in accessing market and doing business.-VNA
VNA
