Vietnam maintains fair, favorable investment environment

Prime Minister Pham Minh Chinh (middle) chairs a conference with foreign direct investment (FDI) enterprises with the theme “Companionship and development” on October 16 in the capital city of Hanoi - photo: VNA

Investor suggestions

Prime Minister Pham Minh Chinh chaired a conference with foreign direct investment (FDI) enterprises with the theme “Companionship and development” on October 16 in the capital city of Hanoi.

Giving a speech at the meeting, Vu Thi Huong Giang, Director of Foreign Affairs for Vietnam, Thailand, Cambodia, Nike Group, said Nike Group has been present in Vietnam since 1995 and has obtained its achievements and successes thanks to a favorable business environment and dedicated leaders with a vision to development of Vietnam. She proposed that Vietnam continue considering sustainable development a top priority, heavily invest in engineering, technology and administration training, and further enrich negotiation experience to promote goods exports.

Minh Do, Country Director of Warburg Pincus, affirmed the foundation has welcomed the Vietnamese Government's policy of turning Vietnam into an international financial center in the region. He said it is crucial for Vietnam to further maintain and improve mechanisms, institutions and policies to maintain and spur development and prosperity, and form a comprehensive financial system.

Lai Minh Thuy, Head of Trade and Treasury Solutions at Citibank Vietnam, said the draft law on credit institutions will be very important not only for the banking system but also for Vietnam's economic growth and development in the coming years. FDI enterprises need to have easy and effective access to bank loans in Vietnam to develop production and trading activities. “We really hope that the Government and the State Bank of Vietnam will consider the banking working group’s comments so that the draft law on credit institutions ensures efficient credit risk control, helping promote foreign investment in Vietnam in the long term,” Thuy said.

Phung Viet Thang from Intel Vietnam said it is necessary for Vietnam to develop the semiconductor workforce and have related proper policies.

Representatives of FDI enterprises at the October-16 conference - photo: Nhat Bac

Commitments to investors

The Prime Minister said at the conference that Vietnam always protects the legal and legitimate rights and interests of investors in any cases, accompanies businesses in overcoming difficulties and challenges, and maintaining long-term, stable investment in Vietnam. Vietnam will not criminalize economic and civil relations, but punish those infracting the law to protect the right ones, and has pledged to create a fair, healthy and sustainable production and business environment.

Reporting at the conference, Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc said this event is to affirm consistency in policies and guidelines of the Party and State for foreign enterprises and to show the concern and companionship of the Government for the terms of the business community and foreign investors.

Foreign investment plays an essential role in economic growth; therefore, foreign investors must be treated equally in order to promote external resources, arouse the spirit of dynamism and creativity, uphold internal strength, quickly seize opportunities and improve the effectiveness of investment cooperation.

According to the leader, the global economic context is complicated and unpredictable, which is more extreme than the forecast level. Multinational corporations are restructuring, repositioning and restoring production chains and capital flows to regions and countries with political, economic and social stability.

Amid the current global issues and unprecedented challenges, the Government and the Prime Minister have performed expansionary fiscal policy comprising extending and reducing land taxes and fees rates, monetary policy and other macro policies; resolved legal problems in the real estate sector; supported the tourism market's recovery; applied preferential credit policies to reduce costs, lower loan interest rates and so on.

In the first nine months of 2023, Vietnam's macro-economy remained stable; inflation was under control and major balances of the economy were maintained. Vietnam's gross domestic product (GDP) increased by 4.24 percent in the first nine months of the year.

The currency market stayed stable and the exchange rate was managed flexibly in accordance with market developments. Besides, interest rates dropped sharply, controlling inflation and meeting the economy's credit requirements, which ensured the safety and liquidity of the banking system. Vietnam enjoyed a trade surplus of US$21.6 billion.

The Ministry of Planning and Investment committed to continuing the innovation and strongly promoted its consultation role for the Government to create breakthroughs in improving business environment, innovating business support methods; and closely coordinating with ministries, sectors and localities to create favorable conditions for investment activities of the business community in general and foreign investors in particular in Vietnam.