Breakthrough solutions needed to attract foreign investment
admin 4-09-2020, 20:28
Breakthrough solutions needed to attract foreign investment

Illustrative image (Photo: VNA)

Hanoi (VNA) – The Vietnamese Government Portal hosted a discussion on September 4 on breakthrough actions and solutions to attract foreign investment.

A report from the Ministry of Planning and Investment shows that as of August 20 the total flow of foreign direct investment (FDI) into Vietnam stood at 1954 billion USD, equal to 86.3 percent of the figure in the same period last year. Of particular note, after difficulties at the beginning of the year, foreign investment has surged in recent months.

Economists said that this is evidence of new flows coming into Vietnam, which is viewed as an exceedingly attractive destination with competitive advantages, participation in new-generation trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), and effective COVID-19 prevention measures.

Nguyen Van Toan, Vice Chairman of the Vietnam Association of Foreign-Invested Enterprises, advised businesses to take advantage of integration opportunities and intensify connectivity, as attracting high-quality FDI will bring about more opportunities for domestic companies.

To attract more high-quality FDI, Nguyen Dinh Cung, former Director of the Central Institute for Economic Management (CIEM), said that unofficial costs are barriers and bottlenecks hampering investment not only by foreign-invested enterprises but also by private domestic companies.

It is therefore essential to cut costs and quickly bring into full play all opportunities to welcome more foreign investors, he said.

Each investor needs a different policy, Cung said, so it is necessary to design policies in accordance with different investors.

Analysts also suggested Vietnam continue to reform its institutions to improve its investment environment and be proactive and consistent in its investment attraction policies./.