return icon

Vietnam strives to effectively attract private investment

Vietnam has been advised to introduce a range of solutions aimed at attracting private investment in an effective manner with the private economic sector increasingly becoming a key part of the national economy,

therefore undertaking a large number of key development projects.

vietnam strives to effectively attract private investment hinh 0
Many cities and provinces in Vietnam are getting a facelift thanks to new high-rise buildings invested by Vingroup

Becoming a key economic sector

Comprised of over 700,000 businesses of various sizes, the private economic sector last year ultimately made up approximately 42% of the country’s gross domestic product and employed up to 80% of the national labour force. Indeed, many private investors such as Sungroup, Vingroup, and BRG have been able to develop well-known brands in a market that is largely associated with large projects through utilising modern technology in both production and business.

According to Nguyen Dinh Cung, former Director of the Central Institute for Economic Management, facilitating the private economic sector’s development remains an inevitable trend for the national economy. The number of newly established enterprises has been steadily annually, while the sector in general has been able to successfully mobilise huge amounts of capital for production and business, developing into an important part of the national economy in the process.

Championing this point of view, Alwaleed Fareed Alatanani, an economist at the World Bank in Vietnam, believes that about US$60 billion of idle money is being kept by local citizens, which could represent a great source of investment for the economy if it is utilised in an effective manner.

Most notably, the increasingly improved investment and business environment can be considered to be an effective support platform for enterprises to organise production, boost business, and attract investment from the private economic sector. At present, relevant authorities have reduced and simplified more than 3,807 out of 6,191 business conditions, along with removing some 7,000 lines of goods subject to inspection, thereby saving VND6,300 billion for firms.

In addition, the median score of the newly released Provincial Competitiveness Index reached 63, a 15-year record high, indicating the outstanding efforts put in by localities as they seek administrative reform.

Solutions to mobilise private capital

With the country effectively bringing the novel coronavirus epidemic under control it is now striving to reboot the economy to reflect moving into a ‘new normal’. Therefore, attracting private investment can be considered one of the key solutions for promoting economic growth.

Representing the business community, Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry, believes the reform of administrative procedures and investment environment should be an absolute requirement for each locality as they try to attract private capital. In line with this, the Government has asked ministries to cut down at least 20% of the number of documents under their authority between 2020 and 2025.

In addition, the Government plans to disburse VND700 trillion worth of public investment capital over the course of the year which will be considered to be a ‘strong push’ to attract capital from the private sector. Pham Dinh Thuy, Director of the Department of Industrial Statistics under the General Statistics Office, notes that promoting public investment will ultimately create positive conditions for private enterprises to provide plenty of services, as well as work, in their role as contractors and investors.

The current ongoing session of the National Assembly is debating a bill on Public-Private Partnership. If it is granted approval, economic expert Nguyen Duc Kien says that the bill will pave the way for private businesses to engage in a range of large projects, therefore becoming the driving force behind national economic development. The Asian Development Bank has also forecast that the country’s infrastructure investment demand will stand at roughly US$480 billion in the 2017 to 2030 period.

With an array of investment opportunities lying ahead, creating a safe business environment along with a transparent and fair legal corridor appears to be the key factor in attracting private investment. VOV

Vietnam encourages private investment in energy: Politburo

Vietnam encourages private investment in energy: Politburo

The Politburo will encourage all economic sectors, especially private businesses, to invest in energy projects, Party General Secretary, President Nguyen Phu Trong has said.

Level playing field between public and private enterprises

Level playing field between public and private enterprises

Economist Dinh The Hien talks about why the Government should create a fair legal corridor for both the private and public sectors.


Vietnam looks forwards to stronger investment from US, Europe

Vietnam is hoping to attract more investment from the US, Europe and major global enterprises under a recently approved strategy on foreign investment cooperation.

People in HCMC wait in long queues at passport office on July 1

On July 1 afternoon, thousands of people lined up waiting for passports at the Immigration Department on the first day of issuing ordinary passports in the new form.

Three SARS-CoV-2 Omicron variant BA.5 cases detected in Hanoi

Although the number of daily new cases of Covid-19 is decreasing sharply, Hanoi has recorded three infections caused by the BA.5 sub-strain of the Omicron coronavirus variant.

Binh Duong ranks first nationwide by GDP

The southern province of Binh Duong took the lead among Vietnam’s 63 provinces and cities in terms of gross domestic product (GDP) per capita in 2021, according to the latest data released by the General Statistics Office.

Tan Hoang Minh allegedly appropriates VND8 trillion of investors

Tan Hoang Minh Group, a major property developer based in Hanoi, is facing charges of misappropriating over VND8 trillion from investors, said a Ministry of Public Security representative.

Businesses get set for circular economy

Vietnam’s rapid economic growth has caused environmental challenges which have forced the nation to focus on fostering the development of a circular economy with less pollution and reused and recycled products.

Over 60,000 fishing vessels urged to seek safe shelter from storm Chaba

Approximately 60,000 fishing vessels operating at sea have been urgently notified to avoid dangerous areas and seek safe shelter from incoming Storm Chaba, according to the National Steering Committee for Natural Disaster Prevention and Control.

Siem Reap - Da Nang air route resumed

Flight K6 840 departed from Siem Reap of Cambodia at 3:35 pm on July 1 and landed safely at Da Nang International Airport at 5:35pm on the same day.

Embassy: two Vietnamese arrested in Spain for alleged sexual assault

Police on the Spanish island of Mallorca on June 25 said they had arrested two Vietnamese citizens accused of raping a 17-year-old girl and privacy violation, according to the Vietnamese Embassy in Spain.

The key role of top leaders in fighting corruption in Vietnam

Head of the Party Central Committee's Commission for Internal Affairs Phan Dinh Trac has emphasized the important role of top leaders, especially Party Secretary General Nguyen Phu Trong, the people and the media in fighting corruption.

Huge costs for filling Ha Long largest open-cast coal mine

It would cost about VND 1.20 trillion (USD 52.18 million) to fill the Nui Beo open-cast coal mine pit in Ha Long City after closure.

Cutting taxes on petrol products is more urgent than ever

“VND50,000 please. No, just VND30,000."  “VND100,000, please. No, only VND70,000." These were conversations I heard yesterday at a filling station.

28 provinces, 21 central hospitals report lack of drugs, medical equipment

Twenty-eight healthcare departments and 12 out of 21 central hospitals have reported they lack drugs.

HCMC proposes developing huge port in Can Gio

The HCMC government has proposed developing an international container port in the outlying district of Can Gio with an estimated investment of some US$6 billion to aid the local marine economy.

500 tonnes of Vietnamese-labelled rice exported to EU

Loc Troi Group JSC exported nearly 500 tonnes of rice labelled with its own brand name “Com Vietnam Rice” to the EU markets in June.