Writing on the blog of the World Economic Forum on May 23, PrimeMinister Nguyen Tan Dung stressed the role of foreign direct investmentin Vietnam's economy, reaffirming that FDI enterprises' success is takenas Vietnam's own. Following is the full text of his article:
"Attracting foreign direct investment (FDI) has always been a keypart of Vietnam’s external economic affairs. Vietnam already has manycomparative advantages and a strong investment climate, but we areworking hard to become even more appealing to foreign investors. We aredoing so by vigorously renovating the business and investment climate,and by recognizing that the FDI sector is an integral part of theeconomy – essential to restructuring the economy and raising nationalcompetitiveness.
As of last month, there were morethan 16,300 active FDI projects in Vietnam that have collectively pulledin a total of $238 billion. These investors came from 100 countries andterritories, and many of them are some of the world’s leadingmultinational corporations. In 2013, FDI inflow exceeded $22 billion, anincrease of more than 35% from 2012. The figures indicate that Vietnamhas become a destination of choice for foreign investors.
So what explains this Vietnamese success story?
First, Vietnam has been securing socio-political stability, and isknown to be one of the most dynamic economies. Economic growth between1991 and 2010 averaged 7.5% each year and, despite the many difficultiesthe country faced between 2011 and 2013, GDP growth still rose by 5.6%.Several international forecasts suggest that this trend will continuein 2014-2015 and beyond.
Second, Vietnam is now in aperiod of golden population structure 60% of its population are workingage. It also has a favourable geographical location right at the heartof East Asia – home to a number of large and vibrant economies.Furthermore, the country is a market economy, a member of the WTO, and aparty to multiple frameworks for international economic integration,including free trade agreements with partners both within and outsidethe region. In particular, the country is part of the Trans-PacificPartnership negotiations. These factors all go some way to explainingwhy so many choose to invest in Vietnam – and should draw in moreforeign investors.
Third, the Vietnamese governmentis committed to creating a fair and attractive business environment forforeign investors, and constantly improving its legal framework andinstitutions related to business and investment. The government has beenworking hard on restructuring the economy and its model for growth, aswell as enhancing national competitiveness.
To addnew chapters to this success story, the Vietnamese government iscontinuing to revitalize its business and investment climate. One way itis doing this is its work on three “strategic breakthroughs”: puttingin place market economy institutions and a legal framework; building anadvanced and integrated infrastructure, particularly transport; anddeveloping a quality workforce. These should all be completed by 2020.
The government remains determined to fulfil itstreaty obligations and promote the negotiation and conclusion of a newgeneration of free trade agreements. Vietnam views the success of FDIenterprises as its own success. As such, the government is committed toensuring a stable socio-political environment, protecting the legitimaterights and interests of investors, and creating an enabling environmentfor FDI enterprises in the country.
In the mediumand long term, Vietnam will continue in its efforts to attract andefficiently use FDI inflows to advance socio-economic development. Thecountry will target “high quality” FDI inflows, focusing on FDI projectsthat use advanced and environmentally friendly technologies, and usenatural resources in a sustainable way. It will also target projectswith competitive products that could be part of the global productionnetwork and value chain.
International forecastssuggest that as the world economy recovers, FDI flows are returning todynamic economies. Given the positive prospects for both global andregional economies, we are confident Vietnam will continue to findsuccess in this area.".-VNA
"Attracting foreign direct investment (FDI) has always been a keypart of Vietnam’s external economic affairs. Vietnam already has manycomparative advantages and a strong investment climate, but we areworking hard to become even more appealing to foreign investors. We aredoing so by vigorously renovating the business and investment climate,and by recognizing that the FDI sector is an integral part of theeconomy – essential to restructuring the economy and raising nationalcompetitiveness.
As of last month, there were morethan 16,300 active FDI projects in Vietnam that have collectively pulledin a total of $238 billion. These investors came from 100 countries andterritories, and many of them are some of the world’s leadingmultinational corporations. In 2013, FDI inflow exceeded $22 billion, anincrease of more than 35% from 2012. The figures indicate that Vietnamhas become a destination of choice for foreign investors.
So what explains this Vietnamese success story?
First, Vietnam has been securing socio-political stability, and isknown to be one of the most dynamic economies. Economic growth between1991 and 2010 averaged 7.5% each year and, despite the many difficultiesthe country faced between 2011 and 2013, GDP growth still rose by 5.6%.Several international forecasts suggest that this trend will continuein 2014-2015 and beyond.
Second, Vietnam is now in aperiod of golden population structure 60% of its population are workingage. It also has a favourable geographical location right at the heartof East Asia – home to a number of large and vibrant economies.Furthermore, the country is a market economy, a member of the WTO, and aparty to multiple frameworks for international economic integration,including free trade agreements with partners both within and outsidethe region. In particular, the country is part of the Trans-PacificPartnership negotiations. These factors all go some way to explainingwhy so many choose to invest in Vietnam – and should draw in moreforeign investors.
Third, the Vietnamese governmentis committed to creating a fair and attractive business environment forforeign investors, and constantly improving its legal framework andinstitutions related to business and investment. The government has beenworking hard on restructuring the economy and its model for growth, aswell as enhancing national competitiveness.
To addnew chapters to this success story, the Vietnamese government iscontinuing to revitalize its business and investment climate. One way itis doing this is its work on three “strategic breakthroughs”: puttingin place market economy institutions and a legal framework; building anadvanced and integrated infrastructure, particularly transport; anddeveloping a quality workforce. These should all be completed by 2020.
The government remains determined to fulfil itstreaty obligations and promote the negotiation and conclusion of a newgeneration of free trade agreements. Vietnam views the success of FDIenterprises as its own success. As such, the government is committed toensuring a stable socio-political environment, protecting the legitimaterights and interests of investors, and creating an enabling environmentfor FDI enterprises in the country.
In the mediumand long term, Vietnam will continue in its efforts to attract andefficiently use FDI inflows to advance socio-economic development. Thecountry will target “high quality” FDI inflows, focusing on FDI projectsthat use advanced and environmentally friendly technologies, and usenatural resources in a sustainable way. It will also target projectswith competitive products that could be part of the global productionnetwork and value chain.
International forecastssuggest that as the world economy recovers, FDI flows are returning todynamic economies. Given the positive prospects for both global andregional economies, we are confident Vietnam will continue to findsuccess in this area.".-VNA
