The Vietnam Association of Foreign-Invested Enterprises (VAFIE) released its annual report on foreign investment in Vietnam at a meeting in Hanoi on May 10 last year.
The report was made in collaboration with KPMG Vietnam with the support of the Foreign Investment Department under the Ministry of Planning and Investment and a number of experts, the Vietnam News Agency reported.
Foreign investment is the pinnacle of Vietnam’s economic picture amid the negative effects of the COVID-19 pandemic on the national and global economies.
However, the remaining problems in the process of attracting and using FDI capital, such as the small number of high-tech projects from the US and Europe. Moreover, the contribution to the state budget of many FDI companies is disproportionate to the size of investment and the incentives they enjoy. The structure of FDI by region and province is still unbalanced and too few companies have established research and development centers (R&D).
In 2019, Vietnam’s Politburo issued Resolution No. 50-NQ/TW on guidelines for strengthening institutions and policies to improve the quality and efficiency of foreign investment by 2030. VAFIE recognized the need to have a report on FDI in the country, so published the report.
Since the National Assembly passed the Foreign Investment Act in Vietnam in 1987, the FDI sector has been developing continuously, making a significant contribution to the country’s economic growth and innovation, a growth model toward industrialization, modernization and promoting Vietnam’s international economic integration strengthens the country’s position in the world.
Foreign direct investment currently accounts for about 25% of total social investment, 55% of the total value of Vietnam’s industrial output and more than 70% of the country’s export turnover.
It has directly created jobs for 4.6 million people or more than 7% of the country’s workforce and indirectly jobs for millions.