BEGIC - The Ministry of Investment and Planning cooperated with Binh Duong province to organize the consultative conference on February 14 to discuss orientations towards refining mechanisms and policies on foreign direct investment (FDI) in the new context. Vuong Dinh Hue, Member of Politburo, Deputy Prime Minister chaired the conference.
Deputy Prime Minister Vuong Dinh Hue spoke at the conference
Addressing the conference, Deputy Prime Minister Vuong Dinh Hue affirmed that over 30 years, the efficiency of using and luring FDI has proved Viet Nam's renovation and integration successful. By the end of 2018, 27,353 FDI projects from 130 countries and territories have been in operation over the country. The total investment capital reached USD 340.1 billon. The amount of USD 191 billion has been invested. All localities have FDI projects and the provinces of south-eastern region occupied 43/6% of the total registered capital.
The Deputy PM said FDI is the important source of capital for social development and economic structure shifting. It also takes the key role in export and helps Viet Nam to step by step join in the production and global value chain network, to transfer technologies in some sector and fields, to develop subsidy industries, to contribute to the state budget, to support the balance of payment, to stabilize the economy and solve the unemployment issues, to shift the career structure and develop the manpower quality and to become the motivation of development.
FDI is also considered the dynamic resource that boost refining economic mechanisms, investment and business climate in appropriate with market economies and international practices, remarkably contributing to raising the position of the nation. In the initial stage, FDI has helped Viet Nam to improve and enlarge its international relations, to overcome difficulties and to normalize the relationship with other countries.
However, the luring and using of FDI have exposed certain limits and shortcomings including the technology transfer from FDI projects, FDI luring for infrastructure and agriculture, environment protection in some FDI projects. The Deputy PM stressed that in the new context Viet Nam is required to refine mechanism and policies; to re-set the targets and orientations for luring and using the FDI; to connect FDI with the strategies of socio-economic development from 2021 to 2030. He expected delegates to the conference basing on analyzing the situation, the trend of industrial revolution 4.0 would contribute specific suggestions, targets and orientations that help Government to refine mechanism and policies to lure FDI in coming time. The Ministry of Planning and Investment was in charge of complete the scheme on FDI attraction to submit to Government and Politburo for consideration.
Delegates at the conference
Leaders of provincial People's Committee of neighboring provinces and cities, representatives of international organizations, FDI businesses…contributed ideas on experiences to lure FDI for services and hi-tech fields in the context of new FTA, solutions and policies to boost FDI attraction from multi-national corporate, development of supporting industries, reinforcement of the link between FDI and domestic enterprises, challenges and suggestions on refining the investment laws and other related issues.
With his speech on "Roles of FDI upon industrial development in connection with smart urban development in Binh Duong", Chairman of Binh Duong provincial People's Committee Tran Thanh Liem revealed that Binh Duong has lured over 3,500 FDI projects from 64 countries and territories with the total registered capital of over USD 32 billion, ranking third about FDI attraction nationwide. In 2018, FDI businesses contributed more than 49.6% of the total investment and nearly 20% into the state budget of the locality, boosting the GRDP up to VND 130.3 million/person.
Chairman of provincial People's Committee Tran Thanh Liem addressed his speech at the conference
From the achievements in industrial development and resources from FDI, the adaptation to the Industrial Revolution version 4.0, in 2016, Binh Duong took its steps to new model of development, boosted FDI attraction, and created new motivations for sustainable development by launching the project: "Smart city of Binh Duong" which followed the experiences of Eindhoven city of Netherlands. Binh Duong also took drastic actions to renew the tasks of FDI lure for the 2016 – 20120 which focused on attracting potential partners, large corporate, to reinforce at he same time traditional markets, to call for FDI into environmentally friendly high-valued and hi-tech fields, to attract FDI project into available IPs, to drive FDI lure into supporting industries, and to join in the global value chains of multi-national corporate.
The strategies to leap forward, refine FDI lure, and develop smart city have brought Binh Duong with active influences on international stage. In 2018, Binh Duong was admitted to Smart21 by ICF and officially became member of WTA (World Technopolis Association). The province also successfully held 2 international conferences including the Global Innovation Forum to celebrate the 20th anniversary of WTA and the Asian Economic Forum, Horasis. All of the achievements have asserted the position of Binh Duong, opened new era with the trend of connection and cooperation between domestic localities and others abroad, created favorable conditions for businesses to approach new technologies, consolidated belief of investors, facilitated the tasks of FDI attraction with higher efficiency.
On this conference, Binh Duong granted investment certificates to 3 FDI projects capitalized at USD 175.8 million.
Deputy PM Vuong Dinh Hue (sixth from right) and leaders of ministries, sectors, Secretary of Binh Duong provincial Party Committee Tran Van Nam (eighth from right) witnessed the granting of investment certificates to businesses