An electronic compenent factory of the Japanese-invested Nidec Sankyo Vietnam Co. Ltd in the Saigon Hi-tech Park in Ho Chi Minh City (Photo: VNA)Hanoi (VNA) – Vietnam attracted 24,397 foreign directinvestment (FDI) projects worth 312.9 billion USD from 128 countries andterritories in the first 10 months of this year. However, experts said that theprojects’ influence on the economy is still modest, necessitating a change inmindset to lure investment.
FDI has been poured into 18 out of 21 sectors and all 63 localitiesnationwide.
According to the Foreign Investment Agency under the Ministry ofPlanning and Investment, the FDI sector’s contributions to GDP rose rapidly to19 percent in 2016 from only 2 percent in 1992.
Exports from the sector accounted for 71.5 percent of the country’stotal in 2016, up from 64 percent in 2012. Its contributions to State budgetcollection also rose from 1.8 billion USD in the 1994-2000 to 14.2 billion USDin 2011-2010. In 2016, the sector paid about 7.1 billion USD to the Statebudget, accounting for 20 percent of domestic collection and 15 percent of thecountry’s total income.
However, along with positive contributions, the FDI sector has alsofaced many problems, as attracting high technology has been difficult.
[Infographics: Vietnam attracts 28.24 billion USD in FDI during Jan-Oct]
Wim Douw, a senior expert for trade and competitiveness policy at theWorld Bank, said that Vietnam’s FDI attraction over past years has dependedlargely on low-cost labour resources and investment incentives, while thequality of the investment has stayed low.
But the country’s advantages are fading, while the fourth industrialrevolution is changing the world rapidly, he said, stressing that Vietnamshould change mindset in calling for investment.
Le Duy Thanh, Vice Chairman of the People’s Committee of Vinh Phucprovince stressed that Vietnam should prioritise environmentally friendlyprojects with modern technology and a strong effect on domestic growth.
Currently, the Ministry of Planning and Investment is building a draftstrategy on FDI attraction for 2018-2022, which is expected to tackle problemsin the field, driving investment quality upwards.-VNA
VNA
