According to the plan, the ministry will promulgate policies to support investors interested in setting up business in Laos and Cambodia. The MPI expects the plan will assist Vietnamese businesses in sharpening their skills so they can compete in Southeast Asia.

An official from the MPI’s Foreign Investment Agency said Vietnamese diplomatic and commercial affair bodies will be asked to periodically report on investment policies and opportunities in the countries where they are executing their assigned tasks.

The MPI reported that to date, there are 140 projects with a total capital of more than US$320 million invested in foreign countries. Of this, industrial projects account for more than 40 percent of total investment projects and 66 percent of total capital, followed by agriculture-forestry-fishery projects and the service industry.

Of the 30 countries and territories that Vietnamese businesses have invested in, Iraq saw the highest investment with a total capital of US$100 million in oil and gas exploration and exploitation, amounting to 30 percent of the total. Laos followed with 41 projects and a total registered capital of US$84.5 million.

According to the MPI, the number of projects is increasing, and so is the size of the projects. This is primarily due to the fact that many investors are currently seeking to enlarge their business activities and market.

Despite this fact, Vietnamese enterprises still find it difficult to invest in foreign countries due to the firms’ low competitive edge, financial restrictions, and a lack of experience.

The new mechanism will create favourable conditions for investors seeking to do business abroad and will protect Vietnamese investors’ benefits in accordance with international regulations.