Vietnamese authorities have collected opinions for a government decision to be issued in early July on measures to attract new sources of foreign direct investment.
These measures target foreign investors, especially multinational companies from developed economies, aiming to increase the ratio of foreign investment to a third of all investment in the next five years.
Under the scheme, Vietnam investment promotion representative offices will be opened in Japan, the EU and the US.
An investment promotion fund will be established and a list of projects calling for foreign investment from 2006-2010 will soon be issued.
Ministries will focus on major investment-related programmes in accordance with the Investment Law and the Government's commitments with international organisations, aiming to create a more favourable and liberal investment and business environment.
Law and policy makers will reconsider tax policies and investment incentives which have hindered implementation of the Investment Law and will issue new directives.
Provincial authorities are required not to issue incentives contrary to the Government regulations on investment.
The draft decision on measures to promote investment is expected to call for the acceleration of administrative reform, including the decentralisation of investment licensing and the one-stop mechanism, in an effort to speed up licensing procedures.
Sufficient power supply is important in attracting investors, and the draft encourages the private sector to be more involved in infrastructure development, including building apartments for workers in industrial parks and export processing zones.
The draft also demands that Government agencies and localities create measures to prevent strikes, develop human resources and build a common salary scale for all labourers.
Media reports say trends suggest that large companies are adjusting their long-term investment strategies by transferring their capital to smaller countries.
This creates favourable conditions for Vietnam to attract FDI, with foreign investors showing greater attention to the country because its investment environment has improved.
Between 2001 and 2005, Vietnam attracted US $20.8 billion from FDI sources. In 2005 alone, FDI in the country amounted to US $6.8 billion, a year-on-year increase of 50%.
By the end of last year, total capital for foreign-invested projects operating in Vietnam reached US $50 billion.
Nhan Dan - (03/07/2006)