Investment
Foreign Direct Investment is an important component of Vietnam's economic growth strategy
For the period from 2011-2020, Vietnam looks to attract FDI projects, including:
i) Have advanced technologies, environmentally friendly, make efficient use of resources and have partnership with domestic enterprises;
ii) Supporting industries, including those that support agriculture and rural areas, competitive services, knowledge-based and information technology.
iii) Services, science and technology, education and training and infrastructure.
In addition, Vietnam will be more selective with regard to manufacturing, advance-technology industries, energy, metallurgy, and restrict investments into non-manufacturing sectors, investments that would worsen the trade deficit, energy consuming and mining that are not related to manufacturing.
Industrial Zones have been one of the key strategy to facilitate investments
At the end of 2011, Vietnam has a total of 283 industrial-manufacturing zones (IMZ), of which 180 are in full operation and 103 are partially established (lands being cleared), with total area of 76.000 ha; 33 economic zones (15 coastal economic zones and 18 border economic zones) with total area of 1,3 millions ha.
At December 2011, the industrial and manufacturing zones have attracted 4.113 foreign directed investment, with a total registered capital of 59,6 billion USD, of which 27 billions USD have been disbursed (45% of registered capital). On average, FDI in IMZ contributes up to 35-40% of the total new registered FDI in the whole country, of which FDI in industrial manufacturing contribute up to 80% of total of the whole country. Border economic zones also attracted nearly 70 FDI projects with total registered capital of 700 millions USD (as well as 500 domestic investments projects with total investments of nearly 2 billions USD.
While the industrial zones have been in operations for a number of years, many on-going efforts aim at increase productivity of IMZ, including:
i) streamline administrative procedures to facilitate "one-stop" application process, where issues pertaining investment, construction, labor, environment, trade... will be simultaneously addressed;
ii) enhance planning process with focus on integrating cross regions and industries and build on the advantages of different provinces (not pitting each provinces against others), eliminating over-lapping zones;
iii) build integrated infrastructures with services and public facilities serving IMZ, with a view toward modernization and competitiveness;
iv) focus on enhancing the quality of investment projects (advance technologies, environment friendly, require low level of capital, and build on the comparative advantages of Vietnam), build clusters of complementary IMZs and supporting industries, compatible with the re-structuring of the economy of each provinces to build more value-added industries;
v) better implementation of the national export promotion strategy to attract businesses that compatible with the comparative advantates and conditions of each provinces, through better identifying and attracting foreign partners;
vi) continue to enhance policies and measure to improve labor issues in IMZs, including wages, housing, facilities, training; update the national strategy for human resource development and building a professional, highly trained, efficient, disciplined labor force.
For specific questions with regard to investment, please contact Mr. Tuan Anh Le, at 202-861-0737 ext. 141, email: tuananh@vietnamembassy.us.
