Updated  
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:
Name:
Your E-mail address:
Title:
 

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

Highlight

Wild peach branches disappear as demand rises Wild peach branches disappear as demand rises

It's hard to find ancient wild peach branches on sale in the northern mountainous province of Son La, due to their overexploitation by the local people.

Flower Road to be opened today Flower Road to be opened today

The Flower Road in HCM City's Ham Nghi Street will be opened to the public at 7pm today. Viet Nam News photographer Van Dat presents different images of the Flower Road, as seen through his lens.

Vietnamese consumer confidence "largely intact": Economist Vietnamese consumer confidence "largely intact": Economist

Vietnamese consumers started 2015 with their confidence broadly unchanged after a tumultuous 2014, ANZ Bank Economist Glenn Maguire said in a recent report.

Viet Nam ranks 10th worldwide in remittances Viet Nam ranks 10th worldwide in remittances

Viet Nam was among the top 10 countries in the world with the largest amount of remittances from abroad last year, with around US$12 billion, according to the Western Union company, which handles money transfers worldwide.

Viet Nam sit at 137th in world football rankings Viet Nam sit at 137th in world football rankings

Viet Nam jumped up four steps in international football rankings, according to FIFA's latest list.