Vietnam has issued Decision 667 approving the foreign investment cooperation strategy for 2021-2030 on reforming the business environment and increasing foreign investment from certain countries. The government is therefore striving to improve foreign investment in quantity and quality, especially in the high-tech and digital economy sectors. Here, Vietnam Briefing highlights key takeaways for investors to know as the country launches a new foreign investment cooperation strategy.
On June 2, Deputy Prime Minister Pham Binh Minh signed Decision No. 667/QD-TTg (Decision 667) approving a National Foreign Investment Cooperation Strategy for the period 2021-2030. FDI inflows into the country continue to gain momentum with US$14 billion arriving in the country in the first half of 2022.
The strategy aims to increase the share of registered foreign investment capital from Asia, Europe and the United States so that the capital they place represents more than 70% of the total disbursed in Vietnam by 2025. and 75% by 2030.
These countries include major investors such as Singapore, South Korea, Japan, China, Taiwan, as well as Malaysia, Thailand, India, Indonesia and the Philippines. The strategy also aims to stimulate investments from EU partners such as France, Germany, Italy, Spain, Russia, the United Kingdom and the U
Another goal mentioned in Decision 667 is to place the country in the top 3 in ASEAN and in the top 60 worldwide in terms of business environment, according to the World Bank ranking.
Nine Ways to Leverage Foreign Investment Cooperation
The strategy proposes nine specific solutions:
- Effectively implement the solutions issued.
- Improving the business investment environment and improving the quality, efficiency and competitiveness of the economy.
- Develop an ecosystem of science, technology and innovation.
- Innovate and strengthen competition to attract foreign investment.
- Development of supporting industries, promotion of linkages and dissemination.
- Promote internal capacity and leverage competitive advantages to improve the efficiency of foreign investment cooperation.
- Improve the effectiveness of international economic integration and Vietnam’s position in the international arena.
- Modernize and diversify investment promotion.
- Improve the effectiveness and efficiency of state management of foreign investments.
However, the most notable can be summarized as follows:
- Develop the country’s innovation ecosystems: to accelerate the implementation of Resolution 52/NQ-CP issued in 2020 by the government on how the country should approach the Industry 4.0 revolution; put in place incentives for cooperation and technology transfer; complete the legal framework on the establishment, protection and commercialization of intellectual property (IP) rights in scientific, technological and creative activities.
- Promote support industries: continue to improve the legal environment for technology transfers by creating a system of synchronous documents; promote the formation and development of intermediary organizations; facilitate the formation of joint ventures and linkages between foreign-invested enterprises and domestic research institutes and universities.
Take away food
The ten-year national strategy aims to improve its business environment with respect to supporting policies and infrastructure and to develop a strong national business sector with maximum support for start-ups while having a perspective of other high-tech implications. in all sectors. This usually means the government is trying to make Vietnam an even more attractive investment destination for foreign capital.
And it promises a set of new regulations, policies and investment incentives from the government to attract a greater amount of foreign investment in the foreseeable future, especially in the country’s current priority areas like high-tech sectors. technology.
The strategy, meanwhile, also calls on national ministries and departments to speed up the resolution of other persistent problems for the country’s competitiveness, such as institutional reforms or the state’s management of intellectual property, which will all contribute to promote economic, cultural and social developments. from the country.
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