Promoting advantages to attract investment

(VEN) – Attracting foreign investment in Vietnam in recent years has declined compared to previous years. According to specialists, this situation will be improved in 2013 if Vietnam pursues and promotes its advantages.

Attracting foreign investment in Vietnam will be improved in 2013 if the country pursues and promotes its advantages

Attracting foreign investment in Vietnam will be improved in 2013 if the country pursues and promotes its advantages

According to Faculty of Planning and Development of the National Economics University Dean, Associate Professor, Dr. Le Huy Duc, Foreign Direct Investment (FDI) in the world tends to increase to US$1.8 trillion in 2013, an increase of US$200 billion compared to 2012 and reach US$1.9 trillion in 2014. In particular, the East Asian and ASEAN countries are still attractive investment destinations.

In 2013, policies to stimulate the growth of major countries’ economy around the world begin to take effect and the economy of some countries is expected to recovery. Many countries in the world start looking for investment opportunities abroad to avoid the risk of concentrated investment in a particular country. Therefore, countries having a stable political regime, completed investment policy, favorable macroeconomic conditions and an abundant labor resource will have more opportunities to attract investment.

Vietnam is expected to attract a new wave of FDI in the future because Vietnam has a stable political regime, positive changes in all aspects of the economy, declined inflation, increased exports, increased foreign exchange reserves and declined interest rates.

In fact, Vietnam has received great consideration from international investors, especially Japanese investors. In 2012, FDI capital from Japanese enterprises to Vietnam reached US$5.13 billion, accounting for 39.5 percent of total investment capital in Vietnam. A wave of Japanese investment in Vietnam will rise sharply in the future. According to the forecast of the Japan Chamber of Commerce and Industry (JCCI), the number of Japanese small and medium-sized enterprises investing in Vietnam will increase by two to three times in next few years.

In addition to Japan, in 2012, the Republic of Korea (RoK)’s investment capital in Vietnam reached US$1.17 billion, ranking third in 58 countries and territories investing in Vietnam. In particular, according to RoK Ambassador to Vietnam Ha Chan Hoo, RoK’s investment in Vietnam will increase significantly in next years.

The message from the US Trade Representative in the CG 2012 showed the desire of US to have a larger role in the Vietnamese economy.

India’s Deputy President Mohammad Hamid Ansari during his official visit to Vietnam from January 14-17, 2013 confirmed that India has considered Vietnam as a focus in its policy. Therefore, the Indian investment in Vietnam is forecasted to increase in the future.

However, in order to attract investment, Vietnam needs to pursue and create advantages to increase the attractiveness of an investment environment. According to the reviews from FDI enterprises, administrative procedures, infrastructure, the quality of human resources and the macroeconomic instability caused too expensive costs are the weaknesses of Vietnam’s investment environment. Therefore, in order to attract FDI in 2013, Vietnam should gradually remove restrictions and promote its advantages.

In particular, the advantage of labor resources should be promoted. While other countries are falling into a phenomenon of population aging, Vietnam is still in the good position because of more than 50 percent of the population in working age. Minister of Planning and Investment Bui Quang Vinh said that this is a competitive advantage of Vietnam./.

By Nguyen Manh Cuong