Vietnamese firms can and should buy into FDI peers, PM says

By Anh Minh   October 4, 2018 | 04:49 am PT
Vietnamese firms can and should buy into FDI peers, PM says
Seamstresses work at a foreign invested garment factory in Vinh Phuc province. Photo by Reuters
PM Nguyen Xuan Phuc said Thursday that domestic enterprises should actively acquire stakes in foreign-invested  companies.

Speaking at a conference on “30 years of FDI mobilization,” he said this would be a strategically sound move.

By leveraging the current market and distribution channels that the FDI firms have, domestic investors will just need to master new technologies and develop new management methods to produce quality products, he said.

Phuc encourages and supports domestic enterprises in entering joint ventures, becoming capital contributors and purchasing shares of FDI firms with advanced and new technologies.

“Vietnam is committed to introducing and implementing new foreign investment polices to create a more favorable and competitive investment environment,” Phuc said.

“The state is always willing to listen and work with investors to find proper solutions that satisfy both sides while ensuring sustainable development,” he added.

The prime minister also asked ministries to help maintain social and political stability while focusing on strengthening the macro-economy.

This will be quite a challenge, he said. “It requires a unification of ideas and perceptions about FDI, as well as the synchronous implementation of economic, social, security, defense and foreign affairs measures."

Phuc stressed that the legal framework on investment, preferential policies and incentives should be improved along with inspection and supervision mechanisms to ensure that FDI enterprises comply with investment criteria, commitments and other conditions.

Looking back at 30 years of FDI in Vietnam, Phuc affirmed that policies on opening doors to foreign investors were correct decisions.

The FDI sector has "become an inseparable part of Vietnamese economy,” he said

As of now, 129 countries and territories have pledged to invest over $334 billion in 26,500 FDI projects across Vietnam.

In 2017, the FDI sector accounted for nearly 20 percent of Vietnam’s GDP, contributed 23.7 percent of the total investment capital for social development, over 50 percent of industrial production value, and 70 percent of export turnover.

The sector has created direct employment for nearly 4 million people and 5-6 million indirect jobs, the conference heard.

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