10:21 | 01/11/2015 Economy
(VEN) - The Vietnam Global Investment Forum held at the end of September in Hanoi attracted more than 700 people from 32 countries and territories. Investors attending the event underlined the advantages Vietnam offered as an attractive investment destination.
The 2015 Global Investment Forum attracted more than 700 attendees from 32 countries and territories
Impressive economic growth
Vietnamese Prime Minister Nguyen Tan Dung explained that after more than 30 years of Doi Moi renovation Vietnam has grown from a country recovering from the consequences of war to become an average-income country with an average gross domestic product (GDP) growth rate of seven percent per year from 1996-2010 and six percent per year from 2011-2015, despite the global financial crisis.
GDP increased by 6.5 percent in the first nine months of this year and is expected to grow further by the end of the year exceeding the set target of 6.2 percent. The World Bank’s Country Director for Vietnam Victoria Kwakwa said that Vietnam was the second fastest growing economy in the world in the last 20 years.
Together with the impressive economic growth, Vietnam is actively and deeply integrating with the global economy via a series of free trade agreements (FTAs) which were concluded or are about to be signed. Vietnam and member countries are building an ASEAN Economic Community (AEC) and it has basically completed negotiations with 11 countries on the Trans Pacific Partnership (TPP). These FTAs are opening a large market for Vietnam and 55 partners including all G7 member countries and 15 G20 member countries. This is a strong engine for foreign direct investment (FDI) to go to Vietnam, according to BASF Vietnam Managing Director Petrus Ng.
VinaCapital Chairman Jonathan Choi also said that the impressive economic growth, deepening international integration plus consistent FDI attraction policies are opening the best opportunities for foreign investors to come to Vietnam.
FDI sector catches attention
At the 2015 Vietnam Global Investment Forum, Minister of Planning and Investment Bui Quang Vinh said that the FDI sector would continue to play an important and long-term role in the Vietnamese economy.
To attract FDI, the Vietnamese government has tried to improve the business environment in a transparent and favorable manner. Vietnam has amended its laws related to investment such as the Enterprise Law and the Investment Law which were amended in 2014. It expects to become an average country in the ASEAN-4 group by 2016, in terms of the business environment and tax and customs reforms.
To spur on private sector investment into infrastructure, the government issued a PPP decree in April 2015. The decree clarifies the role, responsibilities, rights and risks for state and investors; removes the regulation on the state’s ceiling 30 percent stake in PPP projects; and clarifies the process of choosing investors in an aim to provide the best conditions for the FDI sector to participate in infrastructure projects. The government is also intensifying the restructuring of state-owned groups and will require equitized businesses to list shares on the securities market providing good opportunities for foreign partners.