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Govt pledges more incentives for FDI, wants economic connectivity

Van Ly
Monday,  Jun 19,2017,21:37 (GMT+7)
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Govt pledges more incentives for FDI, wants economic connectivity

Van Ly

HANOI – The Government will create favorable conditions to attract more foreign direct investment (FDI), and urged foreign-invested enterprises to connect themselves with domestic enterprises to better create value chains in the process of international integration, heard the Vietnam Business Forum (VBF) 2017 on Friday.

Deputy Prime Minister Vuong Dinh Hue said at the forum that the Government will offer more incentives to investors, but priorities will be given to those FDI enterprises with concrete schemes to set up links with domestic partners. The Government wants to forge stronger connectivity between domestic and foreign enterprises to help them develop and join global value chains, he said. 

“FDI enterprises play a vital part in the Vietnam’s economy and their successes are the country’s successes,” said Hue.

According to the Deputy PM, Vietnam will promote FDI but prioritize enterprises engaging in sectors aligned with the country’s economic restructuring as well as those having modern technology, good governance and are environmentally friendly, and willing to cooperate with domestic partners.

Hue said integration into the global economy is a consistent policy of Vietnam and the country has signed many free trade agreements which set very high standards for international integration.

To provide enterprises with more favorable conditions, the country is making its business and investment environment more transparent. The Law on Support for Small and Medium Enterprises that has just been issued is expected to promote the development of such enterprises.

The Government has set up a target that 80% of administrative procedures will be processed online. Up to 73 customs procedures are being reviewed and amended to create a more attractive investment environment for businesses.

The Government will focus on helping enterprises ride out their difficulties, speed up economic restructuring and attach greater importance to sustainable development.

The Deputy PM asked departments and agencies, especially the Vietnam Chamber of Commerce and Industry (VCCI), to collect feedback from businesses and report to the Government so as to create a more transparent and stable legal system.

VCCI Chairman Vu Tien Loc said at the Vietnam Business Forum 2016 that Government agencies received 127 opinions from the enterprises and replied 88 of them. Up to 55% of such responses have been appreciated by the business community as “very good,” Loc said.

At this year’s forum, economic experts said Vietnam has not taken advantage of benefits from FDI such as financial resources, advanced technologies and good governance skills to improve competitiveness.

The difference in human resources and technologies has created a wide gap between foreign and domestic enterprises. Therefore, measures should be taken to bridge the gap to promote more uniform development, since it is not beneficial when two different growth tempos exist in the economy.

Experts from the World Bank suggested that the policies for foreign and domestic enterprises should be the same for a healthier business environment.

Hiroshi Karashima, chairman of the Japanese Business Association in Vietnam, said along with State-owned and foreign businesses, the domestic private sector should be the driving force for economic growth. The development of small and medium enterprises as well as supporting industries will attract more investment to Vietnam.

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