Foreign investors bet on Vietnam’s growth: minister

Foreign investment in Vietnam is poised to remain robust as international firms see potential for the country to become a global supply hub and play a crucial role in boosting world trade, according to Minister of Planning and Investment Nguyen Chi Dung.

Emboldened by Vietnam’s prompt response to global turbulences, solid macroeconomic fundamentals, and improved credit ratings, a large number of high-technology corporations have been seeking business opportunities, indicating they are placing trust in the country’s growth outlook and investment environment, the minister said at the OECD-Vietnam Investment Forum in Hanoi on Friday.

Dung highlighted that Vietnam places importance on inclusive, rapid and sustainable growth, building an independent and self-reliant economy in tandem with deeper international integration. The government also prioritizes science-technology and innovation on its growth path.

The country needs support from international organizations, including the Organization for Economic Cooperation and Development (OECD), and foreign investors in policy consultation and cutting-edge technology transfer, and investment from funds and financial institutions, particularly multinational corporations, Dung noted.

The country is prioritizing foreign investment in science-technology and innovation, green, digital, circular and knowledge-based economies, electronic components, electric vehicles, semiconductors, new and renewable energies, financial hubs, and biotechnology.

The Ministry of Planning and Investment pledges to create favorable conditions for overseas investors in Vietnam, he said.

Speaking at the forum, OECD secretary general Mathias Cormann hailed Vietnam’s achievements in economic growth and foreign investment attraction.

The OECD is committed to supporting Vietnam in tax-related reforms in line with international practices, foreign investment in a selective manner, setting out roadmaps for green growth and digital transformation, and tapping renewables, Cormann added.

At a reception for Mathias Cormann held on Friday, Vietnamese Prime Minister Pham Minh Chinh asked the OECD to help Vietnam build policies to lure high-quality investments, deepening its participation in global value and supply chains in a manner that investors’ rights are ensured on the back of the enactment of the Global Minimum Tax.

Chinh also called on the OECD to help Vietnam ramp up new driving forces such as green transformation and digital transition, develop a carbon market, and stimulate innovation.