30-year FDI attraction: ripple effect on domestic businesses

ABO/VNA – The attraction and use of foreign direct investment (FDI) in the past 30 years have proven that the door-opening policy of the Party and State of Vietnam is a correct choice in line with the development trend of the era and the country’s situation, Minister of Planning and Investment Nguyen Chi Dung said.

Minister of Planning and Investment Nguyen Chi Dung addresses the conference (Source: VNA)

Addressing a conference reviewing 30 years of attracting FDI held in Hanoi on October 4, the minister said after more than 30 years following the policy of Doi Moi (renewal), door opening and international integration, Vietnam has risen to the rank of middle-income countries with constantly enhanced position and prestige in the international arena.  

The foreign-invested sector has become an important integral component of Vietnam’s economy. As of August 20, 2018, the country counted 26,500 valid FDI projects with total registered capital reaching 334 billion USD. Of the sum, about 184 billion USD has been disbursed. FDI disbursement accounted for an average 18-25 percent of total investment for development of society during 1991-2017.

Minister Dung noted that with the entrance of foreign investors, many service sectors such as finance-banking, insurance, auditing, maritime transport, logistics, education-training, health care and tourism have made remarkable development.

The foreign investment inflow is also a factor behind the formation of new space for development, new urban areas, industrial parks, for export processing zones and economic zones, he said.

The minister stressed that the foreign-invested sector has transferred advanced technology, know-how and experience in many industries and fields, producing ripple effects on the domestic sector, thus improving the technological level and management of Vietnam’s economy, despite certain limitations.

The attraction and use of FDI also contributed to perfecting institutions of the market economy in the country, improving the investment and business environment, expanding external relations and promoting international cooperation and integration, he said.

Minister Dung said the conference provides an opportunity to look back at the 30 years of development of foreign investment in Vietnam, and make a comprehensive assessment of the achieved outcomes along with limitations and shortcomings as well as their causes.

Based on such assessment, the conference will seek drastic and breakthrough solutions to further enhance the quality and effectiveness of FDI attraction and use, thus bolstering the country’s socio-economic development in the coming period.

 According to the minister, the outcomes of the conference will serve as reference for the Ministry of Planning and Investment to complete a master plan on directions for FDI attraction and use to 2030.

“We hope foreign investors come to Vietnam with good will and responsibility, along with specific and result-oriented commitments and actions to do long-term business on the basis of harmonizing interests of investors, the State and the community,” Dung told the conference.

(Source: VNA)