The Ministry of Planning and Investment on July 9 released a report on the recommendations for the strategy and orientation of new-generation free trade agreement (FTA) attraction for 2020-2030, a key piece of the socio-economic development strategy for 2021-2030. 

Over the past decade, foreign direct investment (FDI) inflow into Vietnam has surged nearly ten-fold. 

Speaking at the event held in Hanoi, Deputy Minister of Planning and Investment Vu Dai Thang expressed his belief that the recommendations will lay the foundation for a new national-level approach on FDI and contribute to fulfilling national development goals. 

According to the report, positive FDI attraction is mainly thanks to low workforce costs and incentives. However, the lack of a skilled workforce is a barrier to growth, while the shortage of supply chains, quality suppliers, and effective policies reduce corporate competitiveness. 

In order to deal with challenges ahead and grasp opportunities arising from the Fourth Industrial Revolution, Vietnam needs to build a business environment that matches corporate demand during the digital era, it said.  

Le Bich Loan, from the management board of the Saigon Hi-tech Park, underscored the need to continue with administrative reform, simplify procedures on construction licensing, and improve post-inspection on projects that are already underway. 

Other recommendations include building a national plan on improving the skill of workers; modernising investment attraction in several priority fields; reviewing the framework on existing preferential policies; opening the door to several important service sectors to improve competitiveness and growth; and issuing strategies and policies on facilitating investment abroad. 

The report called for the establishment of a new-generation FDI management agency to ensure the effective realization of such recommendations. -VNA