Scene at the mid-term Vietnam Business Forum (VBF) 2018 (Photo: baodautu.vn)Hanoi (VNA) – The mid-term Vietnam Business Forum (VBF)2018, themed “Linkage between domestic and FDI businesses – Partnership formutual benefit”, opened in Hanoi on July 4.
Co-hosted by the Ministry of Planning and Investment, theWorld Bank, the International Finance Corporation, and management board of theVBF Alliance, the event featured three sessions, focusing on value chain, responseto technological challenges, and financial resources for sustainabledevelopment.
In his opening speech, Minister of Planning and InvestmentNguyen Chi Dung said the year 2018 marks 30 years of foreign investmentattraction in Vietnam. The VBF has supported Vietnam’s efforts in improvingbusiness climate over the past 21 years.
The minister noted that the business community in Vietnam,comprising of both foreign-invested and domestic enterprises, have grown overthe years in both number and strength, becoming an important driving force forthe country’s economic development.
He stressed that the foreign-invested sector has madeconsiderable contributions to Vietnam’s economic achievements. So far 128countries and territories have invested in about 26,000 projects in Vietnam witha total registered capital of 326 billion USD with more than 180 billion USD disbursed.
The FDI sector has contributed about 25 percent to the totalsocial investment and roughly 20 percent of the GDP. As much as 58 percent ofFDI was poured into manufacturing and processing, creating 50 percent of totalindustrial production value, 72.6 percent of the total export, and 3.6 milliondirect jobs and 5-6 million indirect jobs.
However, Dung said linkage between foreign-invested anddomestic firms remains below expectation while support industry development andtechnological transfer are limited.
VBF Co-Chair and Chairman of the Vietnam Chamber of Commerceand Industry Vu Tien Loc said Vietnam has made important steps towards tradeliberalisation and economic openness via the government’s signing of theComprehensive and Progressive Agreement for Trans-Pacific Partnership,completion of legal review for the EU-Vietnam Free Trade Agreement andimplementation of the World Trade Organisation’s Trade Facilitation Agreement.
In addition, the 10 other FTAs that Vietnam has signed haveopened up more doors for Vietnamese goods to many important markets and stimulatedits efforts to improve economic institutions and build a sustainable, stableand attractive business environment in the eyes of domestic and foreigninvestors.
At the same time, Loc voiced several concerns, saying thattrade tension is likely to increase, resulting in unforeseeable changes in theworld markets, thus complicating competition in Vietnam and other markets.Capital, currency and securities markets are also face the risk of uncertainty.
He also noted that though Vietnam’s export revenue has notreduced, the export growth is dropping over months. Vietnam’s exports,especially aquatic products, are meeting with new barriers in major markets.
The US has imposed anti-dumping tax on Vietnamese tra fishand basa while the EU has issued yellow card warning and inspected all batchesof imported Vietnamese aquatic products, he said, adding that timely responseis needed before the situation worsens.
The forum serves as a dialogue mechanism betweenthe Government of Vietnam and the national and international businesscommunities to improve business conditions necessary to foster the developmentof private enterprises, facilitate investment environment, and contribute tosustainable economic growth.-VNA
VNA
