Roles of foreign investment highlighted

Foreign investment has helped drive industrialisation and modernisation in Vietnam via the supply of capital and technology and contribution to the State budget, heard a conference held in Hanoi on April 9.

Nguyen Huy Hoang from the National Centre for Socio-Economic Information and Forecast under Ministry of Planning and Investment said foreign-invested enterprises make up two thirds of the nation’s export revenue and have created 3 million jobs in the country. 

A wide range of products manufactured by foreign-invested enterprises have gained a stable share in international markets such as phones, electronic spare parts, garments and leather shoes. 

A representative from the Irish Economic and Social Research Institute stressed that foreign-invested enterprises have exerted their influence on domestic businesses, pushing them to improve business management in line with international standards and respective competitive capacity. 

FDI businesses also helped create more jobs in materials and parts supply in the country.

Specialists at the conference recommended Vietnam improve its investment climate and create favourable conditions in administrative procedures to attract more foreign investment. 

They also said that a number of drawbacks in foreign-invested enterprises need to be addressed, including languid technology transference, environmental pollution and tax evasion, which have adverse effects on the investment climate in Vietnam.