Many large corporations are interested

At the end of last August, Minister of Planning and Investment (MPI) Nguyen Chi Dung had an online meeting with General Director of Intel Products Vietnam Kim Huat Ooi. Intel proposes several issues related to the implementation of research and development (R&D) activities, technological innovation, and deployment of modern assembly technology; Enhancing Intel's capacity in Vietnam to become a manufacturing plant with modern technology, manufacturing the latest products. At the same time, Intel also provides recommendations and proposals related to corporate income tax (DN) and support for the implementation of R&D activities. Information to Intel, Minister Nguyen Chi Dung said that the National Assembly of Vietnam had passed the Law on Investment (amended), which specifies policies and principles to apply incentives and investment supports. Intel can study and follow the provisions of Vietnamese laws to make specific proposals and plans. The Ministry of Planning and Investment will continue to coordinate to exchange, agree, and submit to the Government of Vietnam for consideration and approval. 

Since the outbreak of Covid-19 globally, many investment promotion activities and meetings of multinational corporations interested in Vietnam have been changed to an online form with the Vietnamese bridge located Executive Center of the Ministry of Planning and Investment. In July, more than 1,000 Japanese investors attended the Vietnam - Japan online investment promotion conference to find new investment opportunities in Vietnam in the context of enterprises tending to restructure production chains and supply chains to diversify investment and avoid depending on one country and one partner. Among the enterprises supported by the Japanese Government to shift production or expand investment in ASEAN, 15 enterprises have received support to invest in Vietnam in the new value chain.

According to the Foreign Investment Agency (Foreign Investment), in the eight months of 2020, the total foreign investment capital into Vietnam reached 19.54 billion USD, equaling 86.3% of the same period in 2019; realized capital was estimated 11.35 billion USD, equaling 94.9%. In which activities of capital contribution and share purchase by foreign investors plunged. Still, new and additional investment capital remained uptrend with an increase of 6.6% and 22.2% respectively thanks to big project attractions Department of Foreign Investment assessed: Although the results of attracting investment in eight months of 2020 have decreased compared to the same period, in the context of a consequential decline in global investment due to the impact of the Covid-19 epidemic is still better than many other countries. The attractiveness of Vietnam in the eyes of international investors. There are still a lot of foreign investors interested and wishing to invest in Vietnam. Although the epidemic has severely affected many countries' economies, in the past eight months, Vietnam has continued to have a trade surplus, mainly contributed by the FDI sector.

Preferential incentives

The Covid-19 pandemic is accelerating, shifting the global supply chain, forming a trend to withdraw investment capital back in the country, or expand investment to another country with a competitive advantage, in line with new development trends. Prof Dr. Nguyen Mai, The President of the Association of Foreign Investment Enterprises, analyzed: Along with India and Indonesia, Vietnam is emerging as one of the three destinations to attract capital shifts. Previously, Vietnam had the advantage of political stability, macroeconomic stability, low inflation, and appreciated its quality human resources. Now two new benefits are added to increase the attractive investment environment. That is considered by leading international organizations such as the World Bank (WB), the International Monetary Fund (IMF) as a model of crisis response in the impact of Covid-19 epidemic and the endurable ability of Vietnamese enterprises are very good ... But to catch the shifting FDI inflows is not easy because the direct competitors India and Indonesia have promptly devised an obvious strategy with outstanding preferential policies to achieve the goal of attracting investment from multinational corporations in any way. In that context, Vietnam must have a comprehensive and effective solution from the land policy, ready to have a "clean" land fund ... to high-quality human resources with affordable costs. Prof Dr. Nguyen Mai noted: These are investment-shifting projects, including the transfer of used equipment. Therefore, there should be a flexible mechanism if Circular No. 23/2015 / TT-BKHCN of the Ministry of Science and Technology is applied to regulate the import of used machinery, equipment, and technological lines for In these cases, no investors want to enter. The process of evaluating the technical equipment standards should be done after the project has completed construction. If it meets the Vietnamese standards, it can operate. These factories also have orders available, so investment procedures must be done quickly to soon go into production, meeting the contract schedule of customers.

Vietnam's strategy on foreign investment in the coming time will give priority to selectively attracting quality, and efficient capital flows, in line with Vietnam's needs for investment cooperation. Accordingly, Vietnam proactively approaches and is ready to support large corporations and foreign investment projects according to the above orientation to carry out excellent and significant business investment activities.