Viet Nam Human Rights
Proactively improve the quality of FDI
28/1/15
Attracting and using foreign direct investment (FDI)
in 2014 has made significant progress over the last few years. According to the
General Statistics Office, the total FDI attracted in the year 2014 reached $20.2
billion, exceeding 19% higher than planned. Besides, real FDI is maintained a
positive trend with the number of $12.4 billion for 2014, increased 7.4% as
compared with the previous year and 2.9% higher than planned.
Total investment of the FDI sector increased by 10.5%
in 2014, made up 21.7% of the total social capital, corresponding to contribute
nearly 20% of GDP, more than 50% of the value of industrial production and more
than two-thirds of total exports of the country. It was not only impressed by
the figure, quality of FDI also made significant progress. On the one hand, FDI
is continuously poured into the leading-edge sectors such as processing and
manufacturing industry, making the proportion of the total registered capital
of 71.6% in 2014, on the other hand, this investment is to reduce the difficulties
in the market when pouring 17.8% of total registered capital in the business
project of real estate and construction.
In 2015 and the coming years, Vietnam will certainly
continue to be an attractive destination for foreign investors with the
increased scale of FDI, the number of FDI projects will be much more diverse
and wider in many sectors, areas because the investment environment is being
actively improved along with the deeper level of international economic
integration. To utilize more effectively the FDI resource, beside the efforts
to improve the quantity and quality, it is time for us to be more proactive in
improving the quality of attracting and using FDI through strategies to use and
attract methodically the FDI and link inextricably with strategies of economic
growth and industrialization, modernization of the country.
Orienting FDI in the sector to create more added value
for Vietnam, using high technology instead of outdated technology; using qualified
and skilled employment rather than unskilled labors; creating more competitive
commercial products or services on the domestic and international market;
enhancing spread of FDI to the manufacturing sector and business in the country
based on the establishment of links, economic cooperation in the environment
for fair and healthy competition. Besides, the quality of FDI is only enhanced
and ensured a while we attempt to overcome the limitations related to FDI
shortcomings revealed in the last time.
Popular Posts
-
Religion is a part of the spiritual life in society, this phenomenon of the superstructure has been strongly changed with economic - social... -
Vietnam has just done well for the second cycle of Universal Periodical Review (UPR) in Geneva, Switzerland. So, what’s the UPR? an... -
Thai people in Shutdown Bangkok protests Not until this crisis, we have realized the ne... -
Representatives from foreign countries congratulate Viet Nam on its election to the Human Rights Council for the first time on November ... -
A street flowers vendor in Hanoi Another new spring has come to Vietnam, bring... -
If nothing changes, there will be a preferential credit program with hundreds of thousands billion of capital for agriculture and r... -
Recently, several anti-governmental individuals have established series of illegal groups and organizations in the name of civil soci... -
Radio Free Asia (RFA) is a private, nonprofit international broadcasting agency of the United States government that broadcasts and...
All comments [ 10 ]
Foreign invested projects have significantly contributed to the development of the country’s infrastructure by improving production capacity and technological renovation.
Foreign invested projects have also contributed significantly to stimulating economic growth by expanding the types and quality of export products as well as resulted in an ever-widening of the global export markets.
These factors directly translate into improved business efficiencies and in turn raise the competitive edge of Vietnamese goods and services.
However, in the context of fierce competition in the region and the world, foreign investment in Vietnam still faces obstacles and challenges which need to be adequately resolved if economic sustainability is to be achieved.
One chief obstacle that concerns many leading market analysts is that foreign investment is overly dependent and directly linked to the ups and downs of the global economy. As the global economy declines so does foreign investment and vice versa, thereby adversely affecting sustainability
Vietnam’s FDI growth is far behind other regional countries. Most FDI projects in Vietnam are relatively small with registered capitalisation of US$100-500 million on average. The larger invested projects, those with more than US$1 billion projects, comprise just 0.2% of the total.
FDI attraction could be improved by continuing to improve human resources, further developing the legal system and eliminating draconian policies that are difficult to understand or implement, and sometimes contradictory.
Vietnam needs to accelerate administration reform, improve infrastructure, develop the support industry and high-qualified human resources, adjust technology transfer regulations, and enhance the efficiency of law enforcement to attract more FDI capital.
The country should be more selective and ensure that only high-quality projects with high added value and using environmentally friendly technologies are granted investment certificates.
Several criminal businesses make use of some loopholes to carry out illegal trading, and this must be strictly prohibited soon.
Your comments