In an article published on the website of the Ministry of Foreign Affairs of the Czech Republic, he noted that the revised law, which is to take effect at the beginning of 2021, will improve conditions and incentives for foreign investors.
The law aims to make Vietnam’s business climate more appealing to foreign investors and attract new investment in high technology, Jarkulisch said.
Although Vietnam is among the most attractive investment destinations in Asia, foreign investment in the country so far has primarily targeted low tech sectors, he added.
As a result, the Vietnamese Government decided to adjust its foreign investment attraction strategy last year to support innovative and high-tech industry sectors, the diplomat noted. An important factor of this strategy is to change investment incentives.
The Government emphasises that a majority of the incentives and changes in the new investment law reflect the demands of large multinational companies that have long sought to enter the Vietnamese market.
The author also underlined that despite the negative impacts of COVID-19, Vietnam remains attractive to investors and drew a total of US$18.8 billion in foreign investment in the first seven months of 2020, a year-on-year decline of only 7%.