The leader of the Ministry of Planning and Investment (MPI) voiced concerns at a teleconference on September 24 that FDI inflows to Vietnam would not rise in the coming period with the recent emergence of Myanmar and Indonesia as competitors, news website VnEconomy reported.

An employee is at work at a factory in Vietnam. After 30 years of renovation and market openness, Vietnam has become one of the most successful countries in the region to attract foreign direct investment 

After 30 years of renovation and market openness, Vietnam has become one of the most successful countries in the region to attract foreign direct investment (FDI). The FDI sector, therefore, also plays a vital role in Vietnam’s economic growth. FDI capital currently accounts for some 25% of the country’s total capital and over 20% of the nation's gross domestic product.

Statistics from the Foreign Investment Agency under the MPI showed that the total FDI capital, including newly registered and extra capital as well as capital contribution through stake acquisitions, amounted to US$35.9 billion in 2017, up a staggering 44.4% against 2016.

The country attracted a total of US$24.35 billion in FDI capital over the first eight months of 2018, rising by 4.2% year-on-year.

Despite the achievements in FDI attraction, the MPI remains concerned about the FDI influx into Vietnam in the coming period.

A report from the ministry indicated that the global economic uncertainty and severe competition in FDI attraction among regional countries, especially Myanmar and Indonesia, will keep fresh FDI capital from surging in the next few years.

Minister of Planning and Investment Nguyen Chi Dung said that FDI is an important part of the country’s economy, confirming that the Government will continue to minimize administrative procedures and improve the business climate to create favorable conditions for investors to enter Vietnam and do business.

In addition, Vietnam will continue to woo FDI, mainly injecting it into ecofriendly projects that use advanced technology in line with Fourth Industrial Revolution requirements.

To successfully attract FDI, the ministry will call on agencies and departments to conduct reviews as part of the licensing process and control over foreign-invested projects, as well as to promote disbursements.

The ministry will also require the relevant agencies and departments to stop licensing projects that use outdated technology and equipment and negatively affect the environment and to closely inspect projects that require large amounts of land.

It is necessary to review licensed projects nationwide, tighten control on large-scale projects and set up strict sanctions against violations, according to the report from the ministry.

The relevant authorities, agencies and departments have also been requested to further connect with the enterprise community to support domestic and foreign firms in dealing with problems and bottlenecks when doing business in Vietnam to boost their operations.

SGT