Want to be in the loop?
subscribe to
our notification
Business News
EDUCATION AND HEALTHCARE AMONG PRIORITY FDI SECTORS IN 2018-2030
New-generation FDI attraction for 2018-2030 will focus on education and healthcare, the sectors making the most added value, in addition to financial services, metal forging & chemistry, hi-tech equipment, logistics, and pharmaceutical.
Vietnam has so far achieved remarkable outcomes in FDI attraction. FDI capital has increased by nearly 1,000 per cent over the last ten years. FDI value per capita has exceeded China, India, and all big ASEAN countries, excluding Malaysia.
FDI capital in 2017 has nearly doubled in comparison to 2014.
However, processing and manufacturing projects, which create low added value, wages, and weak spillover effects, have been dominating the FDI scene with huge total investment value.
As a result, the Foreign Investment Agency (FIA) has just announced the draft of the new-generation FDI attraction orientation and strategy for 2018-2030, when Vietnam cannot actively promote investment in all sectors at the same time, so Vietnam needs to select priority sectors and concentrate resources in order to gain preferable outcomes as well as protect the environment, save energy, and strengthen linkages with domestic firms.
Thereby, the new-generation FDI attraction strategy will focus on the sectors which bring the most added value, use new technology, promote R&D activities, and create strong spillover effects. These will support domestic firms to join global value chains, as well as act as catalysts to create a new generation of successful domestic firms.
Priority FDI sectors are combined with others that make the most added value for connected investment promotion activities. Of these, education and healthcare bring the most added value, and pharmaceutical and hi-tech equipment, health products, OEM automobiles, and transport are the sectors with the highest potential.
The FIA's strategy identified the 17 sectors that gain the most added value and will see investment promotion activities.
(Note: OEM: Original equipment manufacturer; KPO: Knowledge process outsourcing; MRO: Maintenance, repair, and overhaul)
In order to attract FDI to these sectors, Vietnam needs to build incentives which are more interesting than in surrounding countries. According to a research of the World Bank, Vietnam is already applying the duty-free regime. However, investors in Vietnam could enjoy only 2-4 years of duty-free operations, lower than the regional average of 8-10 years, but they would receive 50 per cent tariff reductions in the next 4-9 years.
On the other hand, Vietnam’s preferential taxes by each sector are better than the average of the East Asia-Pacific region and investors in the country can enjoy various incentives at the same time, according to FIA's report.
Source: VIR
Related News
DIGITAL TRANSFORMATION IN LOGISTICS – A KEY TO UNLOCKING SUSTAINABLE E-COMMERCE AND ECONOMIC DEVELOPMENT
Accelerating digital transformation in logistics is critical in order to promote the sustainable development of e-commerce, a conference on applying technology held by the Ministry of Industry and Trade heard on Thursday, as well as accelerating overall economic growth.
SOILBUILD EXTENDS ITS HORIZONS INTO VIETNAM INDUSTRIAL REAL ESTATE
Soilbuild Group, an integrated real estate group, has broadened its investment in industrial real estate to Vietnam through its Soilbuild International division. The official launch of Soilbuild International (Vietnam) took place in Hanoi on May 9th, 2024, and was attended by esteemed guests, including domestic and international partners.
SEMINAR: BUSINESS SPOTLIGHT - THE HONG KONG-INSPIRED PRESENCE NESTLED IN THE HEART OF HANOI'S EAST
16h00 - 18h00, Wednesday (May 22nd, 2024)Almaz Convention Center - Hanoi (GG map: https://maps.app.goo.gl/YtWyGgkiTwWvFnfX6)
VIETNAM SECURES REMARKABLE ECONOMIC SUCCESSES SINCE NATIONAL REUNIFICATION
Since the national reunification on April 30, 1975, Vietnam has obtained admirable economic achievements and is now on its way to become the 20th largest economy in the world. Back to 1975, Vietnam, torn by two major wars, was a backward economy dependent on agriculture and foreign assistance. Foreign loans and aid accounted for over 63 percent of its budget.
350 EXHIBITORS TO TAKE PART IN HCM CITY PAPER, COATINGS, RUBBER, PLASTIC EXPOS
They will have a total display area of 10,000sq.m, 30 per cent more than last year, and the participation of over 350 local and international exhibitors who will showcase thousands of products and technologies.
INT’L INVESTORS EYE VIETNAM’S DATA CENTER MARKET – REPORT
Vietnam’s data center market is increasingly attractive to foreign investors, driven by the country’s expanding digital economy, rising data consumption, and supportive government policies, said a new report by JLL. While Vietnam’s data center sector has traditionally been dominated by local telecommunications companies, global players are now entering the market.