The head of government also asked localities in key economic regions to strive to become magnets for major foreign corporations and receive re-directed regional and global flows of investment so as to translate the challenges presented by the coronavirus into opportunities.
According to the Ministry of Planning and Investment, foreign firms in the fields of IT and high technology, electronics and e-commerce, consumer goods and retail sales and logistics are seeking to relocate their investments.
Multinational companies are speeding up the process of diversifying their investment destinations, relocating their manufacturing bases, expanding their business and implementing new projects, and Vietnam has been earmarked as a safe potential destination for such a shift.
But the opportunity is not only for Vietnam as other countries in the region are also working aggressively to attract high-quality investment during this relocation. If Vietnam acts slowly, it will miss out on the opportunity. The advantages of a safe investment climate, cheap labour and tax incentives are not enough now to attract foreign investors. In this new period, Vietnam must introduce more competitive policies so as to attract major multinational companies, which possess advanced technologies and are also environmentally friendly.
The establishment of the special working group on attracting FDI is a shift in the approach to of seizing on such opportunities. Instead of waiting for foreign investors to visit Vietnam and learn about the business environment, the working group will proactively make plans to see what foreign investors need for their investment so that Vietnam can take appropriate actions to bring the benefits to both sides.
In other words, the working group’s task is to proactively look for high-quality capital and attract world-class firms in order to change Vietnam’s economic structure and assist the country with its scientific and technological development in the future.
After more than 30 years of economic liberalisation, integration and business environment reform, Vietnam has become an attractive destination for foreign investors, with FDI playing a significant role in Vietnam’s socio-economic development. However, there are still many problems in relation to foreign investment activities in Vietnam. Therefore, this is a turning point for Vietnam to begin attracting a new generation of foreign investment.
If Vietnam wants to attract large firms to set up their manufacturing bases in Vietnam in the upcoming economic migration, Vietnam needs to create a transparent business environment and construct good infrastructure so that it is fully prepared to receive new projects when investors decide to pour their capital into the country.
