More specific criteria to attract FDI

THU THU

The Ministry of Planning and Investment (MPI) has announced plans to issue more specific criteria for special investment incentives to better attract foreign direct investment (FDI).

The ministry is collecting opinions to finalise the draft of the Prime Minister's decision on special investment incentives. The decision also aims to institutionalise the provisions of the Investment Law and Government Decree No. 31/2021/ND-CP on issuing detailed regulations and guiding the implementation of a number of articles of the Investment Law.

Many experts have said Vietnam really needs to have new criteria of special investment incentives, aiming at efficiency in investment activities, attracting quality investment and investment in technology, and also ensuring environmental protection.

At the same time, priority should be given to projects with advanced technology, high-tech, added value and connection to the global production and supply chains. That is a goal of Politburo Resolution No 50-NQ/TW on perfecting institutions and policies for FDI attraction and improving the quality and efficiency of foreign investment cooperation.

In addition, the regulations of this decision must be clear and detailed in terms of the scale and duration of incentives, experts have said. The special investment incentives need to apply to both new projects and projects with new investment.

Besides special investment incentives and assistance, under Decree 31, projects can now join investment incentives specified in the investment license, business license, certificate of investment incentives, investment certificate or investment registration certificate. They can also receive incentives via a decision on investment guidelines or a decision on approval for investment guidelines.

Vietnam attracts over USD15 billion of FDI in six months. Among the 18 sectors attracting FDI, manufacturingprocessing lured the highest amount at USD6.98 billion, accounting for 45.7 percent of the total investment, followed by power production and distribution with USD5.34 billion, making up nearly 35 percent of the total investment.

As of 20 June, Vietnam had hosted 33,787 FDI projects worth USD397.89 billion in total, of which USD241.1 billion, or 60 percent, had been disbursed.

The export revenue of the foreigninvested sector has continued to rise at 32.2 percent to USD116 billion (including crude oil), accounting for 74.1 percent of the country’s total export revenue. The sector’s revenue excluding crude oil reached USD115.3 billion, up 32.6 percent year on year.

The sector imported USD102.6 billion worth of goods in the period, up 38.7 percent year on year. As a result, in the first half of this year, it enjoyed a trade surplus of USD13.4 billion including revenue from crude oil.