Politburo issues first resolution on FDI
Vietnam's Politburo has issued its first ever resolution on attracting foreign investment, prioritizing high-tech and clean sectors.
The main decision-making body of the Communist Party of Vietnam has ordered government bodies to be selective in licensing FDI, focusing on quality, efficiency, advanced technologies, and environmental friendliness.
The resolution also requires foreign-invested projects to have advanced management, high value addition and links with the global supply chain.
The number of foreign firms which use advanced technology and management and are environment-friendly needs to rise by 50 percent between 2018 and 2025 and double by 2030, it said.
The government needs to keep out small investments and prevent transfer pricing fraud, it said.
The Politburo targets FDI of $30-40 billion a year in 2021-25 and $40-50 billion a year in 2026-30, and disbursement rates of at least 66 percent and 75 percent respectively.
The rate of use of local components needs to rise from the current 20-25 percent to 30 percent by 2025 and 40 percent by 2030, the resolution said.
FDI pledges for new projects, increased capital and stake acquisitions in Vietnam downed 11.9 percent year-on-year to $20.22 billion in the first seven months of this year, according to the Ministry of Planning and Investment.
Estimated FDI disbursement for the seven months was $10.55 billion, up 7.1 percent year-on-year.
Vietnam has been attracting FDI for over three decades now, with the value reaching $334 billion as of August last year.