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The Politburo issues the first FDI Attraction Resolution

The Politburo issues the first FDI Attraction Resolution

Friday 17, 01 2020
On 21st August, General Secretary and President Nguyen Phu Trong has signed the Solution no.50 on the Regulations and Policies completion orientation, as well as the increase in quality and effectiveness of the foreign investment cooperation until 2030.

After 30 years of attracting FDI, the Politburo issues the first specialized solution aiming to orient in the coming years. 

On 21st August, General Secretary and President Nguyen Phu Trong has signed the Solution no.50 on the Regulations and Policies completion orientation, as well as the increase in quality and effectiveness of the foreign investment cooperation until 2030.

The Politburo has emphasized that from now to 2030, the directive viewpoint must attract FDI selectively, using quality, effectiveness, technology, and environmental protection as the main factors for evaluate. Meanwhile, it also must prioritize projects with advanced, new, high-tech, and clean technology, high added value, widespread impact, connecting the global manufacturing and supply chain.

Besides, the general goals are completing the highly-competitive foreign investment cooperation regulations and policies and global integration while simultaneously fixing the basic limitation in building, completing, and implementing the regulations and policies on foreign investment cooperation. 
The Solution emphasized on the researches and building of regulations aiming to improve the situations of “thin capitalization”, price transfer, hidden investment, and fraud; the refusal to review the expansion and extension of projects using outdated technology, having implicit risks of environmental pollution and resource intensive. 

This directive was raised in the context of recent FDI attraction having gained some achievements but there still being the increasing and growingly subtle phenomena of price alteration, hidden investment, and fraud. Some companies and projects had wastefully exploited the natural resource and land, violated the labor and salary policy, etc., resulting in complicated domestic and international disputes and complaints. 

The Solution of the Politburo has also implemented the regulations on “the Conditions for National Defense and Security” during the considering, issuing investment registration certificate to new investment projects, investment activities through the form of capital contribution, share purchase, and contributed capital. 

The Politburo has demanded to clearly define the responsibility of the investors for the environmental protection during the project investment and implementation process, as well as for the business operation during the project implementation process. Together with those missions, the completion of the policies on the investment management and monitoring, as well as the innovation and improvement of the effectiveness of the investment promotion need to be paid attention to.  

The Politburo noted the emphasis on checking, supervision and inspection associated with improving the responsibilities of local authorities and heads; the thorough handle of projects that cause environmental pollution and inefficient land use, those that have suffered from business losses for many years, and those that did not comply with their commitments. 

Statistics show that after 30 years of receiving FDI capital

Vietnam has had more than 23.000 FDI projects with a total registered capital of more than 300 billion USD, in which the implemented capital accounts for 161 billion USD. The Solution no.50 set forth the goals of having the registered capital of 150-2000 billion USD in the 2021-2025 period (30-40 billion USD per year) with a implemented capital of 100-150 billion USD and having the registered capital of 200-300 billion USD in the 2026-2030 period with the implemented capital of 150-200 billion USD. 

The goals also include the increase by 50% by 2025 and by 100% by 2030 of the rates of companies using advanced technology, modern administration, and environmental protection, heading towards high-tech technology. The proportion of trained workers in the labor use structure also needs to rise from 56% in 2017 to 70% by 2025 and 80% by 2030.

>>> China, the FDI leader in Vietnam after 8 months of 2019

According to VnExpress - Compiled by VietnamCredit 

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Business

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