09:56 | 08/06/2018 Economy
(VEN) - A project designed to upgrade and develop Vietnam’s national investment information system, funded by the Republic of Korea (RoK) government, will be implemented from now until 2021 to help Vietnam attract foreign direct investment (FDI) more effectively, especially from the RoK.
In early May 2018, the Ministry of Planning and Investment (MPI) and the Korea International Cooperation Agency (KOICA) signed an agreement to implement this project with a total investment of US$6.2 million. The RoK will grant US$5.5 million and the Vietnamese government will fund US$700,000.
According to Deputy Minister of Planning and Investment Vu Dai Thang, the RoK government will help Vietnam upgrade the entire national investment information system. He said this important project would help enhance the MPI’s capability in collecting, managing and analyzing the national database on investment, providing online public services for investors, and assisting localities in granting investment registration certificates, as well as in managing projects.
The MPI established the national investment information system in the 2008-2011 period pursuant to Prime Ministerial Decision 43/2008/QD-TTg approving the plan to apply information technology in the operation of state offices. The system went into operation on July 1, 2015 in accordance with the 2014 Investment Law. However, due to a lack of funds, it is yet to meet the requirements of investment attraction, as well as the 2014 Investment Law, and requires upgrades.
KOICA Country Director for Vietnam Kim Jin-oh believes the project will help integrate Vietnam’s national investment information system with similar systems of other countries, so that Vietnam can use databases more effectively to achieve better investment attraction results.
According to Deputy Minister Vu Dai Thang, Vietnam has attracted 25,524 FDI projects with total registered capital of US$320 billion, including 6,800 RoK investment projects with total registered capital of US$59 billion. The RoK has become the number-one foreign investor, among 128 countries and territories investing in Vietnam.
Although Vietnam has attracted a large number of FDI projects, economists say these contributions to the Vietnamese economy remain limited due to ineffective management. While most localities offer foreign investors attractive incentives, many FDI projects in Vietnam do not yield the expected results. Moreover, other countries in the region and worldwide are competing with Vietnam in attracting FDI, so ineffective management will make it increasingly hard for Vietnam to attract quality projects.
Kim Jin-oh believes the project will help boost FDI, especially from the RoK.
Deputy Minister of Planning and Investment Vu Dai Thang:
In the first four months of 2018, Vietnam attracted more than US$2.3 billion of FDI from the RoK through 420 new
projects and increases in the capital of ongoing projects.