more jobs, thus enhancing human resource quality and labour re-structuring.

FDI investment has had a positive impact on accelerating industrialisation and modernisation and integration in the global economy. It has also helped create significant capital for the economy.

Some high-quality services have been created such as tele-communications, international tourism, finance and banking, insurance, audit, shipping and logistics.

Challenges

Meanwhile, there has been a rapid increase in FDI firms' import turnover: from 43.5 per cent in 2010 to 56.71 per cent last year, said the ministry.

FDI businesses have not yet produced a great deal of high-value added and intensive products in Viet Nam. They also depend heavily on imported materials.

For example, mobile phones, electronics and automobiles are mainly assembled from imported spare parts; and apparel and footwear are just CMT (cut-make-trim) from imported materials.

FDI firms have not actually focused on technology transfer as committed. Also they have not contributed to support industries in Viet Nam, and they have not developed large projects on agriculture or projects in mountainous areas.

Besides challenges and solutions, the conference also discussed the outlook for FDI activities, implementation of the export-manufacturing plan, and challenges in policies related to finance and taxes, exports and imports, and customs procedures.

The event also discussed detailed recommendations on how to increase production and export of FDI firms.

Speakers said the country should focus on producing high-value exports with high value added.

It was also recommended to invest in production chains of materials, including fabric making, weaving and dying, footwear materials, high-class plastic materials, electronic components, and motorbike engines.

Speakers also recommended that Viet Nam enhance its value supply chain with companies in support industries. In addition, the country should continue to transfer technology and improve the local value content of Vietnamese products.

Investment in large-scale agricultural projects and food processing industry in rural and mountainous areas was also suggested.

There are 101 countries and territories with investment projects in Viet Nam.

Source: Vietnamnews