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FDI's contributions and future orientation (28/3)
28/03/2013 - 14 Lượt xem
The contribution of the FDI sector
Deputy
Minister of Planning and Investment Dao Quang Thu said that FDI is the
most dynamically growing sector with a gross domestic product (GDP)
growth always higher than the country's average. In 1995, the sector
reached a GDP growth of 14.98 percent, while the country's average was
9.54 percent. The rates were 11.44 percent and 6.79 percent in 2000,
13.22 percent and 8.44 percent in 2005, and 8.12 percent and 6.78
percent in 2010, respectively. The sector's contribution to the
country's GDP increased from two percent in 1992 to 12.7 percent in
2000, 16.98 percent in 2006 and 18.97 percent in 2011.
In
1991-2000, the FDI sector poured into Vietnam US$29.67 billion,
accounting for 24.32 percent of all investment capital in the country in
this period. The numbers were US$69.47 billion and 22.75 percent in the
2001-2011 period, respectively. The FDI sector's contribution to
Vietnam's economic structure in the 2000-2011 period increased 5.4
percent.
|
As
of the end of December 2012, according to statistics of the Foreign
Investment Agency of the Ministry of Planning and Investment, Vietnam
attracted 14,522 FDI projects with a total registered capital of
US$210.5 billion, US$ 71.9 billion of which was already invested.
Investors from 100 countries and territories worldwide have invested in
most of important fields in the country, such as processing and
manufacturing, real estate, accommodation and catering services,
construction, information and communications, entertainment, mining,
wholesale and retail, agriculture, forestry and fisheries, finance,
banking and insurance, health, science and technology, education,
administrative management and support services.
Foreign investors in Vietnam include many world leading corporations: Total, Toyota, Canon, Samsung, Intel, and Unilever. |
FDI
contributed significantly to exports. Prior to 2001, exports of the FDI
sector accounted for only 45.2 percent of Vietnam's total export
revenue (including crude oil). Since 2003, the sector's exports
developed considerably to make a 64 percent contribution to the
country's total export revenue in 2012. The sector's contribution to
state budget revenue has increased. It paid US$1.8 billion and US$14.2
billion in taxes to the state budget in 1994-2000 and 2001-2010 periods,
respectively. In 2012 alone, the sector paid US$3.7 billion in taxes to
the state budget (except crude oil), accounting for 11.9 percent of
Vietnam's total budget revenue.
The
FDI sector contributed to transforming the Vietnamese economic
restructure towards industrialization and modernization. About 58.4
percent of all FDI in Vietnam was found in industry and construction. It
has technological level higher than the country's average. Foreign
invested industrial and construction sectors grew an average of 18
percent per year, which was higher than the whole industrial and
construction sector's average. The FDI sector has made a contribution of
almost 45 percent to the total industrial production value in Vietnam
while contributing to the formation of a number of key industries of the
economy, such as telecommunications, mining, oil and gas processing,
electronics, information technology (IT), steel and cement.
Besides,
the FDI sector contributed to economic restructuring in Vietnam through
the application of science and technology in agricultural production
and created two million direct jobs and three to four million indirect
jobs. It is an important channel of technology transfer that contributes
to improving the technological level of the Vietnamese economy.
According to the statistics, from 1993 to now, Vietnam had 951
approved/registered technology transfer contracts, of which 605 or 63.6
percent were of the FDI sector. These contracts were implemented through
connectivity between FDI and domestic enterprises, through which to
create favorable conditions for domestic companies to approach
transferred technology. Many made-in-Vietnam products made by FDI
businesses have cared a niche in the US, EU, Japan and other foreign
markets.
Problems and solutions to solve problems
Minister
of Planning and Investment Bui Quang Vinh admitted that the attraction
and use of FDI in Vietnam has not reached expectations; the rate of
high-tech projects remained low; Vietnam had not attracted any source
technology projects; and the percentage of new jobs remained low;
investment licensing that is incompliant with approved plans and
inefficient use of natural resources were still found in a number of FDI
projects. Many FDI projects did not comply with the law of Vietnam.
They still involved transfer pricing and discharged wastes into the
environment.
According
to Minister Bui Quang Vinh, Vietnam is entering a new period with a
target of basically becoming a modern, industrialized country by 2020 so
FDI attraction in the coming time needs to be implemented according to
the four following directions: 1) to create a big change and to shift
from a model of attracting as many FDI projects as possible to a model
of only attracting quality projects, high-tech and environmentally
friendly projects and projects compliant with the orientation on
economic restructuring for specific regions and Vietnam as a whole; 2)
to attract large-scale projects with highly competitive products that
have participated in global value chains of transnational corporations,
based on which to construct and develop support industries; 3) to
prepare FDI attraction plans by sector, field of operation and partner
and in accordance with advantages and potential of specific regions and
national benefits; and to gradually shift from attracting FDI based on a
low labor cost to attracting FDI based on high-quality resources.
To
reach this target, according to Vinh, Vietnam needs to have effective,
practical solutions; apart from strengthening macroeconomic stability,
expanding the domestic market, solving problems related to
infrastructure and human resources, and developing domestic businesses,
it is necessary to improve the legal framework for attracting investment
that is competitive with that of other countries in the region./.
Source: VEN
Source: VEN
