The Strategy for foreign investment cooperation in 2021 – 2030

05/07/2022
Prime Minister has just approved the Strategy for foreign investment cooperation in 2021 – 2030.
The strategy aimed at attracting foreign investment projects that utilize advanced technology, new technology, high technology of the fourth Industrial Revolution, modern administration, yield high added value, and connect global production and supply, demand chains; Expanding market, utilizing capital, technology, and knowledge regarding management and culture of enterprises in areas with foreign investment capital; improving competitiveness of the economy, enterprises, and domestic products; promoting industries, agriculture and service sectors in Vietnam, establishing and enhancing the role of Vietnamese enterprises in international communities; Improving comprehensive effectiveness in attracting and using foreign investment capital, increasing capital contribution percentage of foreign investment in socio-economic development to match benefits and support provided; Building and developing innovation centers, financial centers of regional and international scale to create socio-economic development drive.
The Specific objectives are: to complete specific objectives under Resolution No. 50-NQ/TW dated August 20, 2019 of the Politburo; Increase the percentage of investment capital registered by countries and territories in total foreign investment capital of the whole country to more than 70% in 2021-2025 and 75% in 2026-2030, including: (i) Asia: Korea, Japan, Singapore, China, Taiwan (China), Malaysia, Thailand, India, Indonesia, Philippines; (ii) Europe: France, Germany, Italia, Spain, Russian Federation, UK; and (iii) America: United States of America; Total number of multinational corporations listed as the world’s largest 500 corporations by Fortune Magazine (USA) having presence and operating in Vietnam increases by 50%; By 2030, Vietnam is listed among the top 3 ASEAN leading countries and top 60 worldwide leading countries in business environment category by World Bank.
Solutions for improving effectiveness of foreign investment cooperation focus on improving competitiveness index of Vietnam based on assessment criteria of World Bank, World Intellectual Property Organization, and World Economic Forum; focus on low indices in terms of institutions, infrastructure, and commodity market.
Regarding institution, it needs:
- Enhance the active, exhaustive, extensive, and practical participation of ministries, departments, and local governments in order to create fair, coherent, and transparent business investment environment. Ensure stable, consistent, synchronous, and developing investment environment and regulations in order to promptly adapt to new issues and deal with difficulties.
- Improve outlook capacity and transparency in developing legislative documents; develop procedures for monitoring, assessing conformity, impact, and quality of policies, effectiveness of policy implementation.
- Research and develop policies on flexibly adopting business investment procedures for appropriate business lines in order to create competitiveness in attracting and using foreign investment capital.
- Closely monitor the promulgation of business conditions for conditional lines of business. Conduct research to reduce unnecessary, unreasonable lines of business and business conditions in a manner that guarantees adequacy and consistency in business freedom of investors as per the law.
- Develop regulations on prevention of investment disputes; propose solutions for resolving difficulties and disputes of investors, issue early warnings regarding potential disputes between the Government and foreign investors.
- Issue policies to create legal corridors for development and management of new investment methods formats and methods conforming to international practice.
- Closely monitor acquisition activities of foreign investors and foreign-invested enterprises in domestic enterprises, especially major enterprises, enterprises operating in key sectors; closely monitor investment projects that can potentially impact national security or public order.
- Promote the development and completion of institutions in order to create the adequate and comprehensive legal basis for implementation and development of e-Government, moving towards digital Government and digital economy in Vietnam.
- Review and assess advanced institution solutions that have entered into pilot implementation or application and yielded positive results, implement institutions for application on a nationwide scale; assess preferential treatments that create inequality in terms of institutions among areas in order to narrow and soon eliminate institution inequality and inconsistency.
In terms of infrastructure, it needs:
- Produce planning for infrastructure development following modernization direction with strategic mindset, long-term aim, together with region connection in order to create development drive.
- Develop policies on facilitating types of ownership, including foreign investment, invest in development and trade of infrastructures via multiple forms, prioritizing PPP model and research shared risk mechanism conforming to international practice.
- Promulgate the list of priority projects for investment in infrastructure development in order to develop high quality infrastructure system for traffic, telecommunication, information technology, electricity, water, logistics, etc. in order to reduce transport cost and input costs of enterprises and improve competitiveness of the economy.
In terms of the commodity market, it needs:
- Diversify export market, utilize advantages brought by signed FTA, especially agreements such as the CPTPP, EVFTA, and RCEP.
- Review policies, tariff barrier and non-tariff barrier solutions, ensure integration commitment and benefits of domestic enterprises, and improve cooperative effectiveness with foreign investment sector.
- Form and ensure effective operation of markets serving commodity production, especially markets related to foreign investment such as finance, land, employment, technology, Etc.
- Enhance free market of commodity production factors; ensure market principles in access to land, capital, and market integration opportunity.
This Decision comes into effect on June 02, 2022. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities are responsible for implementing this Decision