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Monday, June 17, 2024

Gov’t supports domestic industrial development

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HANOI – The Government has just released an action plan to set up national industrial development policies and impose stricter requirements against foreign direct investment (FDI) projects to facilitate the growth of the local industrial sector.

According to the action plan until 2030 with a vision toward 2045, the Government will establish policies to support the domestic industrial sector to meet a number of targets, such as entering the top three ASEAN nations for the competitive industrial performance index, an industrial labor productivity growth rate of 7.5% annually and a minimum ratio of advanced industrial product value in the manufacturing and processing sector at 45%.

The Ministry of Planning and Investment was asked to set up rules, the level and duration for incentive policies for FDI projects. It will also set up mechanisms and policies to raise the added value of domestic enterprises in the global value chain.

The action plan goes in tandem with the other policies on foreign investment cooperation of the Government, controlling the efficiency of foreign-invested projects and turning the concept of “investment attraction” into “investment cooperation”.

For Resolution 58, the Government will set up requirements to not consider the expansion of projects using outdated technologies. Vietnam will have mechanisms to compete with other countries in attracting high-tech projects, especially those with research and development conducted in Vietnam.

New FDI projects will be evaluated based on the level of participation in the global value chain, domestic added value and high technology application. If investors fail to follow their commitments, they will have to pay for compensation. Besides, FDI investors will be assessed by law compliance.

In recent times, some FDI enterprises in Vietnam have been found infringing violations in some merger and acquisition deals. For the manufacturing sector, FDI firms still make up a controlling ratio in export scale and value.

By Lan Nhi

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