09:17 | 12/02/2020 Economy
(VEN) - In 2019, despite numerous difficulties and challenges, the Vietnamese economy continued to achieve impressive results in major fields, especially in attracting foreign investment. Considering foreign direct investment (FDI) as an integral part of the economy, the government has made strong commitments to furthering its efforts to improve the business and investment environment to attract foreign investors.
Active and selective
In 2019, the disbursement of FDI projects in Vietnam reached a record US$20.4 billion - the highest annual result so far. Total registered capital exceeded US$38 billion - the highest in the past decade. Vietnam has become a strategic investment destination for many multinational groups and is stepping up to a higher position in global value chains.
Significant contributions to these encouraging results came from the business community, including domestic and foreign investors. At the Annual Vietnam Business Forum (VBF) 2019, Minister of Planning and Investment Nguyen Chi Dung emphasized the role of and contributions by FDI companies to Vietnam’s development, especially their linkages with and support for domestic businesses.
The presence of more than 100 world-leading groups in Vietnam has contributed to helping domestic companies increase productivity, promote technological innovations, develop support industries and participate in global manufacturing networks and value chains.
Minister Nguyen Chi Dung affirmed that in the coming period, Vietnam will take the initiative in attracting foreign investment in a selective manner, focusing on quality, effectiveness, technology and environmental protection. Priority will be given to projects using advanced, new and future technologies, green projects using modern management methods and creating high added value, which can have widespread positive effects helping connect Vietnamese businesses to global manufacturing networks and value chains.
Praising the government’s efforts to improve the business environment and attract investment, Vietnam Chamber of Commerce and Industry (VCCI) Chairman and President Vu Tien Loc said that in 2020 and ensuing years, the government will continue striving to remove barriers to FDI businesses and connect them to domestic small and medium companies, tightening the linkages between the Vietnamese economy and foreign economies through free trade agreements.
Loc requested FDI companies to consider building connections with Vietnamese small and medium enterprises (SMEs) as their social responsibility. “Their connections with domestic SMEs will help strengthen the position of FDI companies in the Vietnamese economy and ensure their sustainable growth,” he said.
Deputy Prime Minister Trinh Dinh Dung affirmed that the Vietnamese government is taking various measures to further improve the investment and business environment and enhance national competitiveness. Vietnam considers the legal environment, infrastructure and human resources as major factors helping mobilize resources for development.
The deputy PM said the government’s consistent goals are to enhance growth quality and ensure macroeconomic stability, especially effective implementation of financial and monetary policies. Vietnam is in the process of changing the growth model by harmoniously combining quantitative and qualitative growth in order to ensure rapid and sustainable development.
To facilitate business development, the government will prioritize investment in infrastructure to create smart and effective connections, helping businesses reduce costs, enhance efficiency and competitiveness. The government encourages investment in education, science and technology to improve the quality of human resources. The business community is encouraged to contribute to building a circular economy and promote creative innovations.
In the near future, the prime minister will establish a specialized working group responsible for promoting the reform and improvement of the business environment, looking towards the goal of abolishing 20 percent of legal documents that have been issued by ministers, the prime minister, the government, and cutting at least 20 percent of administrative costs each year.
Deputy Prime Minister Trinh Dinh Dung requested groups, large businesses and companies with foreign investment capital to bring into play a pioneer role in applying new technologies and developing new, creative business models to promote sustainable development, creating opportunities for SMEs to manufacture and supply intermediate products and support services. “The business community is the face of each economy. In the Vietnamese economy, the business community plays a very important role, helping the country realize its aspiration for prosperity, with the government playing the constructive role in the development process,” he emphasized.