What is Vietnam Doing to "Catch the FDI Wave"?

22/06/2020, 09:04 AM

The "wave" of FDI will shift from China to Vietnam, but whether it is able to catch it or not depends entirely on Vietnam.

The reality of competition in attracting foreign investment is very fierce. To catch the "wave" of investment shifting from China, many "rivals" of Vietnam have made many drastic moves. For example, in India, in April 2020, the Government of the country proactively approached more than 1,000 US companies and offered special incentives to businesses considering moving out of China. The Indian government is even preparing a land fund twice the size of the Duchy of Luxembourg to prepare for the movement of factories from China. In addition, Thailand, last year when the wave of movement from China began, announced a "resettlement" package for manufacturers seeking to leave China, along with a series of preferential policies. Even China has enacted a new Investment Law to retain foreign investors.

According to the published information, Vietnam is also taking positive steps to "welcome the FDI wave", recently Prime Minister Nguyen Xuan Phuc signed Decision 850 / QD-TTg establishing a Task Force to promote Foreign investment. Deputy Prime Minister Pham Binh Minh is the Leader.

The working group is tasked to advise the Prime Minister of the mechanisms, policies, criteria, standards of investment in international competition and solutions to timely capture investment cooperation opportunities. in the new situation; proactive with flexible measures, suitable to reach and negotiate with large, high-tech corporations leading or operating value chains to mobilize, promote and suit the purpose, require investment for mutual benefit.

At the same time, carrying out domestic and foreign investment promotion activities to attract quality projects; large capital scale; high technology; innovation; safety, commitment to cooperation, creating favorable conditions for Vietnamese enterprises to participate in the value chain, investing in value-added stages associated with human resource training cooperation; research and development; promote digital economy and contribute positively to the socio-economic sustainable development of Vietnam.

In addition, inter-sectoral, inter-regional and inter-regional coordination organizations to promote the formation of linkages and support projects, facilitating and effective implementation. perform other duties assigned by the Prime Minister; periodically or upon request, report to the Prime Minister on the implementation of tasks of promoting investment cooperation of the Working Group.

Source: General sources