September, 17 2012 09:56:00

More effective investment policies urged

HA NOI (VNS)— Policies should be revised to boost the quality and effectiveness of foreign investment, said Do Nhat Hoang, head of the Ministry of Planning and Investment's Foreign Investment Agency (FIA).

Investment incentives in the past have attempted to draw investors to high-tech industries or infrastructure but failed co-ordinate with planning for those sectors, Hoang said.

Under a draft assessment of FDI, with orientations to 2020, the Ministry of Planning and Investment has proposed to adjust incentives to bring investment to sectors targeted in development plans, he said, noting that incentives could also be targeted to environment-friendly projects and projects in industrial zones, export processing zones and high-tech parks.

Foreign direct investment (FDI) declined 33.9 per cent in the first eight months of the year to US$8.47 billion, driven down by the sluggish world economy and the greater competitiveness of neighbouring economies at attracting FDI, according to the ministry.

Disbursements of FDI have also slowed, with many provinces and cities revoking the investment licences of projects that have been slow to disburse capital, especially the southern province of Ba Ria-Vung Tau, which has set a target to attract US$500 million in newly registered FDI this year, while promoting disbursement of $27 billion in 298 projects approved in past years.

Some other provinces, such as Quang Ninh, Binh Dinh, Hung Yen, and Bac Ninh, as well as the city of Da Nang, are reviewing all licensed foreign-invested projects that have seen slow implementation, seeking ways to reasonably supports these projects or to revoke the licenses of those without the financial capacity to proceed.

Together with standard investment incentives, the nation needed a system of flexible investment incentives aimed at stratetic foreign investors, especially multinational corporations, Hoang said. These investors could spur the development of needed support industries Viet Nam, and the right incentives could encourage them to invest more heavily in technology here.

Deputy Minister of Science and Technology Nguyen Van Lang said technology should be the highest priority in targeting foreign investment, since technology would help the nation improve its competitive capacity, access regional distribution chains and achieve sustainable development.

Viet Nam Institute of Economics director Tran Dinh Thien said Viet Nam should ensure basic conditions for foreign investors, including a proper legal framework for business operatons, sound infrastructure, and a trained workforce with proper management and technological skills.

To improve the efficiency of foreign investment and increase disbursements, Pham Thai Son, head of Hung Yen Province's industrial zone management board, also suggested that investment licences should only be granted once an investor has disbursed investment capital in accordance with a project's investment registration. — VNS

Send Us Your Comments:
Your E-mail address:

VietNamNews may edit your comments and not all emails will be published.


Mountains of coal sludge still threat to lives in Quang Ninh Mountains of coal sludge still threat to lives in Quang Ninh

Wiping sweat from his forehead, 36-year-old Trinh Duc Sang took big strides along a road covered with muddy coal sludge and dirt to the place that was his home until just three weeks ago. He climbed a rickety ladder that buckled under his weight to reach his neigh-bour's house overlooking a creek. From there, he crossed into his old home.

Doctors treat patients for free at clinic in Ha Noi Doctors treat patients for free at clinic in Ha Noi

For more than 20 years, Dang Thi Nhan, 67, has been waking up about 30 minutes earlier each day to bake cakes or prepare tea for two retired doctors in a clinic near her house in Ha Noi's Giap Bat Ward.

Wounds begin to heal between US, Viet Nam 1    Wounds begin to heal between US, Viet Nam

Pham Ba Lu swore thousands of times that he "would not live under the same sky as the United States".

Water resources, eroding land need saving Water resources, eroding land need saving

Water management has become a major topic of discussion in recent years among Viet Nam's lawmakers, experts and society. The country has been struggling to deal with water-related issues such as a rising sea level, land subsidence and saline intrusion in the Mekong Delta. Lawmakers and experts shared their views on water management with Viet Nam News reporters Thu Van and Hoang Anh.