Strategic investment attraction should be seen as a means, not an end: HCMC official
Vietnam and Ho Chi Minh City in particular need to look at attracting foreign investment as a means to realizing the goal of developing domestic industrial capacity, not just a short-term fix, said Nguyen Anh Thi, head of the Saigon Hi-Tech Park's (SHTP) management board.
Speaking at a Thursday conference on prospects and solutions to attract investors in the context of the global minimum tax (GMT) being applied and new trends in HCMC, the SHTP representative said that in the past the Vietnamese economy has relied heavily on foreign investment.
Industry lies at the center of every country's economic policy, so if Vietnam wants to develop an independent and autonomous economy, it must develop the domestic industry.
“Technological capacity and the presence of national high-tech parks are very important in attracting foreign investment, especially to key industries like semiconductors,” he noted.
Citing the SHTP as an example, Thi said that the park is building two ecosystems associated with two stages of semiconductors in the short term: design and packaging. By the end of 2023, the SHTP had attracted $5 million of investment capital from Dutch company BE Semiconductor Industries N.V (Besi). This project is expected to promote the transfer of semiconductor chip packaging technology to HCMC in particular and Vietnam in general over the next 2-3 years, he added.
"We need to consider attracting strategic investment as a means, not an end. We must make strategic investors help us with improving technology transfer capacity and attracting investors to the supply chain," Thi stated.
The SHTP head noted that current investment attraction policies should revolve around people. If Vietnam wants to compete with other countries in the region, it must have a competitive personal income tax policy alongside other incentives.
“Vietnam’s six economic regions currently have different levels of development, leading to different mechanisms. Therefore, it is necessary to pilot this approach in leading localities like Ho Chi Minh City,” he said.
Noting 2024 is the first year that Vietnam will officially apply the GMT, he said that its implementation will create conditions to increase tax revenue from FDI enterprises, but will directly impact the country’s policies to attract foreign capital and its investment environment.
Pham Binh An, deputy director of the Ho Chi Minh City Institute for Development Studies, said that in the first two months of this year, Vietnam’s FDI commitments reached more than $4.29 billion, an increase of 38.6% over the same period in 2023. Domestic and foreign investors have been active in partnering with each other in catching up with new trends like emerging industries, new materials and energies, green and sustainable growth.
- Read More
Vietnamese women revive traditional vocations with modern innovations
Three Vietnamese women have made a mark for themselves and the nation’s agricultural sector by reviving traditional vocations using modern innovations and reaching out to the world with quality products.
Companies - Sat, November 23, 2024 | 7:35 am GMT+7
Sumitomo subsidiary acquires 49% stake in Vietnam’s top crop protection firm
Summit Agro International Ltd., a member of Japanese conglomerate Sumitomo, has acquired a 49% stake in Hop Tri Investment Corporation, a leading crop protection firm in Vietnam.
Companies - Fri, November 22, 2024 | 8:25 pm GMT+7
E-wallets get thin as banking apps prosper in Vietnam
E-wallets appear unable to compete strongly against online banking applications in Vietnam, several market observers say.
Banking - Fri, November 22, 2024 | 7:15 pm GMT+7
Use social media influencers in targeted manner for e-commerce success: Vietnam execs
Vietnamese companies should use new generation influencers in a targeted manner, prioritizing specific market segments, standardizing quality and focusing on strong product categories to achieve e-commerce success, says Nguyen Ngoc Luan, CEO of Meet More Coffee.
Companies - Fri, November 22, 2024 | 4:26 pm GMT+7
VinFast’s parent, PV Power partner to speed up charging station expansion
Vietnamese private conglomerate Vingroup, the parent firm of electric vehicle manufacturer VinFast, and state-controlled PV Power have entered an agreement to develop charging stations across the country and promote rooftop solar installations.
Companies - Fri, November 22, 2024 | 4:11 pm GMT+7
Petrovietnam, Petronas to boost renewable energy cooperation
Petrovietnam and Petronas, two state-owned oil & gas giants of Vietnam and Malaysia, will further cooperate in renewable energy, including exchange of information, knowledge, and experiences.
Energy - Fri, November 22, 2024 | 2:59 pm GMT+7
FTSE Vietnam ETF may heavily buy Vinhomes, sell Vingroup in upcoming reshuffle: broker
FTSE Vietnam ETF is forecast to strongly buy in several Vietnamese heavyweights such as Vinhomes, Hoa Phat, and Vietcombank in its upcoming portfolio reshuffle.
Finance - Fri, November 22, 2024 | 2:45 pm GMT+7
$681 mln central Vietnam urban area project eyed by Sun Group gets authorities' nod
A VND17.3 trillion ($681 million) urban area project that is drawing the interest of major realty developer Sun Group has received an in-principle approval from Khanh Hoa province's administration.
Real Estate - Fri, November 22, 2024 | 1:53 pm GMT+7
Vietnam foreign ministry dismisses allegations of tightening visa rules for foreigners
Allegations of Vietnam tightening visa policies and control over foreigners are "baseless", Foreign Ministry spokeswoman Pham Thu Hang said Thursday.
Politics - Fri, November 22, 2024 | 11:29 am GMT+7
Thailand-invested food giant CP fined $31,000 for environmental violations
Vietnam’s southern province of Dong Nai has issued a fine of VND790 million ($31,080) to Thailand-invested C.P. Vietnam Corporation for violating environmental regulations.
Companies - Fri, November 22, 2024 | 10:48 am GMT+7
Vietnamese billionaire’s daughter spends $25 mln on Masan share purchases
Nguyen Yen Linh, the daughter of chairman Nguyen Dang Quang of consumer goods giant Masan Group (HoSE: MSN), has purchased nearly 8.5 million MSN shares over the past three weeks, meeting 85% of her target.
Finance - Fri, November 22, 2024 | 10:27 am GMT+7
PYN Elite manager upbeat about Vietnam’s economy, stock market despite Trump uncertainty
The Vietnamese economy will still fare well, and the local stock market will remain appealing despite the recent pullback following Donald Trump’s election win for a second term, said Petri Deryng, portfolio manager of Finland-based the PYN Elite fund.
Finance - Fri, November 22, 2024 | 8:25 am GMT+7
Central Vietnam province plans to build $2.4 bln LNG power plant from 2031
The 4,800-MW Chan May LNG power plant, with an investment of $2.4 billion, can be deployed in 2031-2035, according to Thua Thien Hue authorities.
Energy - Thu, November 21, 2024 | 10:41 pm GMT+7
Indonesia, France step up cooperation in economy, defence
Indonesian President Prabowo Subianto discussed economic and defence cooperation during a bilateral meeting on Tuesday with French President Emmanuel Macron on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, Antara reported.
Southeast Asia - Thu, November 21, 2024 | 10:25 pm GMT+7
Thai economy to maintain upward momentum in 2025
The National Economic and Social Development Council of Thailand (NESDC) expects the Thai economy to sustain its upward momentum in 2025 with a growth of 2.3-3.3% despite growing risks.
Southeast Asia - Thu, November 21, 2024 | 10:24 pm GMT+7
Former parliament chairman Vuong Dinh Hue warned for violations
The Politburo, Vietnam's supreme decision making body, on Wednesday issued warnings to Vuong Dinh Hue, former Chairman of the National Assembly, and Nguyen Van The, former Minister of Transport, for violations while on duties.
Politics - Thu, November 21, 2024 | 10:10 pm GMT+7