Deputy PM underlines selective FDI attraction

Deputy Prime Minister Vuong Dinh Hue speaks at the working session.

Hue made the note during a working visit to the northern city of Haiphong on January 25, aiming to review the city’s attraction and use of foreign direct investment (FDI) in the past time.

Haiphong has earned plaudits from many international firms as it is home to some 630 FDI projects, totally valued at US$17 billion. As for 2018, FDI inflows into the city touched over US$2.62 billion, nearly three times higher than that of 2017.

FDI investments are said to give impetus to the city’s economic growth as the export turnover of foreign-invested enterprises holds an increasing proportion.

However, the management of FDI projects outside economic zones and industrial parks in Haiphong remains a major problem.

The city has yet to put forth effective measures destined for handling chronic FDI - related issues, including associated transactions, transfer pricing, and paper losses.

Nguyen Van Tung, chairman of the Haiphong municipal People’s Committee noted the requirement to ensure the selective attraction of FDI inflows with a focus on high-tech projects and others across the fields of supporting industries, renewable energy, and infrastructure.

Priority should be given to large-scale projects and those providing high value-added and competitive products and leveraging local firms to join the value chains of multinational corporations, thus bolstering the expansion of local supporting industries.

Deputy PM Hue wondered whether the tax incentives Vietnam has been offering to foreign investors would no longer be a big magnet.

He has high hopes that amendments to the Law on Investment, the Law on Enterprises, and relevant policies would trigger a new wave of FDI inflows into Vietnam.

Together with Haiphong, a working delegation led by Deputy PM Hue will continue to survey the attraction and use of FDI resources in other localities in a bid to refine a draft plan on ‘Orientations to complete mechanism and policies and to improve the quality and efficiency of FDI attraction and use until 2030.'

The draft plan is scheduled to be submitted to the Politburo for approval in March.