“Vietnam should adopt a new mindset in foreign direct investment (FDI) attraction, which shifts away from offering incentives to providing support, with a focus on key priorities and targeted objectives for the economy,” said Dr. Huynh Thanh Dien at Nguyen Tat Thanh University in an interview with The Saigon Times. The challenge post-global minimum tax The Saigon Times: In the impact assessment report on the draft of a Government decree on establishment and management of the Investment Support Fund, the Ministry of Planning and Investment said that many large FDI firms have explored the investment environment in Vietnam but have finally chosen other countries. According to the ministry, they have asked for direct financial support, but Vietnam currently has no relevant regulations. What do you think? Dr. Huynh Thanh Dien: When FDI companies invest in a developing country like Vietnam, their primary goal is to produce goods at the lowest cost possible and export them globally as smoothly as possible. Hence, they choose countries that either offer good support and incentives, mainly taxes; have favorable production conditions including infrastructure like roads and ports; have a young and inexpensive workforce that can adapt well to new technology; or have a liberal […]