Viet nam- A "good-land" for high-quality FDI

Creating the spillover of high-quality FDI, connecting and spreading FDI enterprises to the domestic sector are two issues that are handled by Ms. Era Dabla-Norris, Head of the delegation of the International Monetary Fund (IMF) is responsible for Vietnam issues raised during an exchange from Washington (USA) with the Vietnam Investment Review.

Việt Nam cần tập trung tạo sức lan tỏa của khu vực FDI đến doanh nghiệp trong nước. Trong ảnh: Công nhân nhà máy tại Bắc Giang của Foxconn (Đài Loan).

The expert said that Prime Minister Nguyen Xuan Phuc's decision to set up a special working group to attract FDI, to welcome the wave of shifting production to Vietnam after the epidemic is very supportive. This shows that the Government understands the importance and contribution of FDI to productivity growth and economic growth.

A noteworthy move was the Politburo issued Resolution No. 50-NQ / TW dated August 20, 2019, to improve the quality of foreign investment attraction, call for improvement of the business environment for foreign investors; promote links and connections between the FDI sector and the domestic economic sector; At the same time, aiming to raise technical standards and environment ...

The efforts to improve Vietnam's legal framework on FDI attraction are commendable and can help Vietnam attract higher quality FDI in the near future, ”Ms. Era Dabla-Norris emphasized.

FDI inflows into Vietnam cannot avoid the impact of the Covid-19 pandemic, but Vietnam is still considered a "good land" to attract high-quality FDI capital after the epidemic.

IMF experts said that many large international corporations are seeking investment opportunities to diversify their supply chains and limit their dependence on the Chinese market. Vietnam has become one of the brightest candidates to welcome this flow of capital thanks to its success in preventing diseases.

Obviously, with the goal of welcoming high-quality FDI, bringing higher value, quality factors are always on top. This requires Vietnam to have a series of better overall reforms, such as institutional and regulatory reforms for FDI, enhanced protection of intellectual property rights, ensuring fair competition, and removal of non-tariff barriers and overcoming corruption, improving the skills of workers to meet the higher requirements of high-quality investors.

Ms. Era Dabla-Norris recommends that the strategy to attract investment that Vietnam should approach is not to pay attention to pure FDI attraction but to focus on creating the spillover of the FDI sector to domestic enterprises.