A new policy drafted by the Ministry of Planning and Investment and relevant agencies is expected to fuel foreign direct investment (FDI) flows into Vietnam. The Prime Minister recently asked the designated agencies to draft a resolution aimed at improving the efficiency of FDI attraction, use and management till 2020.
The resolution focuses on amendments to current policies to create the best possible conditions for foreign businesses to operate in the long term and to ensure Vietnam’s investment climate is as attractive as those of other countries in the region. Foreign businesses are expecting the issuance of this resolution to facilitate their operations in the country. The Japan External Trade Organisation (JETRO) has forecast that there would be a third wave of Japanese investment into Vietnam this year. Hirokazu Yamaoka, chief representative of JETRO Office in Hanoi, quoted the result of a recent survey, saying an increasing number of Japanese investors are confident of their improved performance in Vietnam in 2013.He revealed that Japanese investors plan to expand operations in the areas of information technology, software development, retails, and medical services, alongside the current manufacturing and processing industries in the country. Among 17 foreign investors in Vietnam in January 2013, Japan took the lead, pouring US$157.7 million into newly-licensed and existing projects, making up 56.1 percent of the country’s total. It was followed by Thailand (US$54.2 million or 19.3 percent) and France (US$20 million or 7.1 percent).Overall, foreign businesses invested US$280 million in eight industries in Vietnam last month. The manufacturing and processing industries attracted the most investment capital amounting to US$202.9 million. The real estate and sci-tech development sectors came in second and third, attracting US$50 million and US$13.9 million from newly-licensed and existing projects, respectively.