Workers at Hong Kong-based GTFV Ltd, in northern Hải Dương Province. — Photo ndh.vn

HÀ NỘI — Foreign direct investment (FDI) in Việt Nam has been forecast to hit an all-time high this year, said Đỗ Nhất Hoàng, head of the foreign investment department under the Ministry of Planning and Investment.

More FDI has been channelled into high-tech fields and industries that are environmentally-friendly. In addition, the ministry has been building a set of criteria to select investments that are suitable and beneficial to Việt Nam’s development strategy in the future, Hoàng said.

“Last year, FDI disbursement reached US$19.1 billion, setting a 30-year record. This year, the figure is very likely to be even higher,” said Hoàng.

Hoàng stressed the disbursement figure – as opposed to registered FDI which will likely reach over $35 billion in 2019 – reflects more accurately the country’s position as an attractive investment destination for foreign firms and will give an immediate boost to the economy.

“Multiple multi-billion dollar projects will arrive in Việt Nam in the near future, with many of them under South Korean and Taiwanese firms, who view Việt Nam as a strategic and crucial investment destination,” he said.

Besides existing mega-corporations such as Samsung, LG and SK who has set up operations in the country, many South Korean and Taiwanese firms are looking to land in Việt Nam.

Greener investments

FDI investment has also been getting greener in recent years thanks to an effort by the Government to filter out investment projects that were likely to negatively impact the environment.

“The time for outdated technologies that are harmful to the environment is over. The central government prioritises high-tech, environmentally-friendly projects. It’s a message we have made very clear to potential foreign investors and local governments,” Hoàng said.

The country’s direction for FDI has been further reinforced under Politburo’s Decision 50 that governs Việt Nam’s strategy in attracting FDI until 2030. The Ministry of Planning and Investment has been tasked to build a set of standards to select and review the effectiveness of FDI projects.

In the absence of such standards, local governments and firms have been having difficulties with the current regulatory mechanisms, according to Nguyễn Mại, chairman of the Vietnam Association of Foreign Invested Enterprises.  

Hoàng said the standards aim to select projects with advanced technologies, that are environmentally-friendly, with greater added-value and are likely to cooperate and connect with domestic firms. — VNS