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Thursday, October 29 2020
Tiếng Việt
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Date 07/09/2020-17:07:00 PM
Vietnam – A rising star
(MPI) - On September 7th, 2020, the Ministry of Planning and Investment cooperated with Standard Chartered Bank and the State Bank of Vietnam to hold an online conference specializing about Vietnam with the theme "Vietnam - A rising star”, attracting the participation of business leaders from Asia, Europe and the United States. This event is part of Standard Chartered Bank's series of investment attraction activities focusing on ASEAN region. The first part of the series starts with the ASEAN Standard Chartered Business Forum 2020, held online with the participation of Prime Minister Nguyen Xuan Phuc and 4,700 delegates from around the world.
Minister Nguyen Chi Dzung delivered opening speech at the Conference.Photo: MPI

Speaking at the opening of the Conference, Minister Nguyen Chi Dzung appreciated Standard Chartered Bank's efforts in proposing to coordinate with the Ministry of Planning and Investment and the State Bank of Vietnam to organize this online Conference. This is a good opportunity to share new investment trends, solutions to reform Vietnam’s investment environment, and making recommendations to improve cooperation efficiency heading towards success when investing and doing business in Vietnam.

For years, many multinational corporations around the world have had the process of restructuring investment and re-positioning supply chains in order to optimize investment efficiency.When the world economic and political context becomes complicated recently, the trade conflict between major economies remains straining, and especially the negative impact of the Covid-19 pandemic has broken up the supply chains, multinational corporations have to accelerate the process of restructuring and diversifying investment in order to avoid reliance on one country, or one partner.Given its existing competitive advantages, strong reforms of the investment climate and increasing international position, and positive and effective anti-Covid-19 measures, Vietnam is highly appreciated by the international community, becoming an attractive and safe investment destination for foreign investors.

In the context that global FDI is likely to decline by up to 40% in 2020, Vietnam's FDI attraction results in the first 8 months of the year are still relatively positive with total registered capital of nearly 20 billion USD, especially newly registered capital, expanded and added registered capital up by 6.6% and 22.2%, respectively.These figures are very encouraging, confirming the efforts and determination of the Government and all levels of authorities in attracting foreign investment capital, particularly high quality foreign investment flows suitable to Vietnam’s orientation.It is a priority to attract projects using high technologies, advanced technologies, new technologies, clean technologies, modern governance with highly added value, spillover effects, to transfer technologies and support Vietnamese businesses to participate in the production chains associated with human resource training.

Recently, Vietnam has been proactively preparing inputs for investment activities, such as: preparation of land infrastructure and land clearance;accelerating the process of training human resources to meet the needs of foreign-invested enterprises;continuing to improve the business investment environment and enhancing the country's competitiveness in order to receive high quality foreign investment capital flows as well as attracting investment in large corporations around the world.Vietnam also sets up a Working Group to promote foreign investment cooperation and attract investment from multinational corporations and large enterprises, promptly grasping investment cooperation opportunities in the new situation.

At the last National Assembly session, a series of laws related to investment and business, e.g.: the amended Investment Law, the amended Enterprise Law, and the Public-Private Partnership (PPP) Investment Law, have been passed with many new points which tend to simplify investment procedures, increasing decentralization andtransparency, diversifying investment forms, providing special investment incentives for large-scale projects that meet the criteria and make significant contributions to the socio-economic development of Vietnam.

In addition, the Vietnam - EU Free Trade Agreement (EVFTA) and the Vietnam - EU Investment Protection Agreement (EVIPA) have also been approved by the National Assembly, leading to a new, broad, comprehensive and more strengthened cooperation development between Vietnam and the EU.These two Agreements and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and other free trade agreements are seen as modern large-scale highways helping Vietnam get closer to other economies in the world;offering market access advantages when Vietnam has free trade relation with 55 countries, of which 15 are the G20 members.According to a recent study by the World Bank (WB), the simultaneous implementation of both EVFTA and CPTPP will help Vietnam's GDP increase by 3.2% in the decade of 2021-2030.

With a worldwide network of connection, the Ministry of Planning and Investment would like Standard Chartered Bank to strengthen the connection with investors, attracting multinational corporations around the world to invest in Vietnam in order to build special centers and facilities and create the driving force of socio-economic development in the coming time such as Center for Innovation, International FinancialCenter, etc.

Opportunities exist. Given the desire to become a rich and powerful country, we realized that Vietnam needed to have higher determination, renewed thinking, and strong, drastic and creative action in the implementation process to overcome current challenges and difficulties, Minister Nguyen Chi Dzung emphasized.

Panorama of the session.Photo: MPI

Speaking at the Conference, State Bank Governor Le Minh Hung said that Vietnam had always been rated as an attractive destination by foreign investors over the past 20 years thanks to many factors which play a very important role, including the political, economic and social stability and policies of foreign investment facilitation.As the state management agency in the monetary and banking sector, the State Bank has always focused on performing properly the task of ensuring macro stability, currency and exchange rate stability, and a healthy banking sector which has high resilience and capability to timely meet capital needs for economic development, so as to create a favorable business environment for all economic sectors, including foreign investors.In the context of the Covid-19 pandemic causing negative impacts on all socio-economic sectors, the Government and the State Bank have taken measures to flexibly and promptly respond to minimize negative impacts and turn challenges into opportunities.

From the beginning of the year till now, the State Bank has taken correct and timely steps in both monetary policy management, payment and banking sector management.Two times of reducing the executive interest rate to support credit growth, lowering the ceiling deposit interest rates and lending rates in priority areas have created favorableconditions for both credit institutions and borrowers to access funding sources at lower costs.The Bank continues to closely monitor market developments, managing the exchange rate actively and flexibly in accordance with the market's supply and demand, proactively communicating to maintain public confidence and issuing the legal documents to help credit institutions restructure debts, to reduce interest rates for customers affected by the Covid-19 pandemic, to waive payment services and continue the reform and supervision of the banking sector to ensure the healthy development of the system.

Standard Chartered Bank Vietnam General Director Nirukt Sapru and the group of five ASEAN and South Asian countries shared that Vietnam continued to offer exciting investment opportunities given its strong fundamentals of a young, dynamic andtech-savvy population, a growing domestic market, a rising middle class and an open economy.Many multinational corporations have been interested in establishing business and investment in Vietnam in order to leverage their strategic connectivity and proximity to Asian economies as a gateway to grow their business.While Covid-19 is likely to prolong, it should not prevent us from exploring the new opportunities that Vietnam can offer and attempt new strategies to build and sustain growth in the country.

The panel discussion at the conference was participated by Soren Bech, General Manager of RB Health Vietnam and C. K. Tong, CEO of BW Industrial Development, and moderated by Nirukt Sapru, CEO of Standard Chartered Bank Vietnam and ASEAN & South Asia Cluster Markets, and Nguyen Xuan Thanh, Independent Non-Executive Director of Standard Chartered Bank Vietnam.The speakers paid attention to Vietnam's 10-year socio-economic development strategy for the period 2021-2030, the role of foreign investment in this Strategy, and important upcoming policies to create a more open and favorable environment for M&A activities in Vietnam with the participation of foreign investors and how Vietnam will continue to open up to key service industries as a foundation for productivity improvement, economic competitiveness and productivity.

Minister Nguyen Chi Dzung wrapped up the discussion.Photo: MPI

Sharing about these issues, Minister Nguyen Chi Dzung said that Vietnam's socio-economic development strategy for the period 2021-2030 was still in the process of studying and collecting ideas to perfect the draft version.The overall goal of the strategy is to strive that Vietnam is a developing country with a modern-oriented industry that surpasses low middle income by 2025.It is targeted to be a developing country with modern industry and high middle income by 2030, and a developed country with high income by 2045.The principle of economic development is fast and sustainable, mainly based on science, technology, innovation and digital transformation,proactively and actively integrates, diversifies the market, and improves the economy's adaptability.The market plays a key role in mobilizing, distributing and efficiently using production resources. The legal system must promote innovation, digital transformation and the development of products and economic services. The human factor is highly appreciated, where the person is considered as the center, the subject, the main resource andthe goal of the development. Economic, cultural and social development is cohesively and harmoniously attached to strengthening defense,safetyand security, environmental protection, improving the efficiency of external activities,maintaining political security, ensuring social order and safety.In the new development strategy, foreign investment continues to be an important source of capital, being encouraged and facilitated for long-term development, healthy cooperation and competition with other economic sectors.The State respects and protects the legitimate rights and interests of investors, ensuring the harmony of interests between the State, investors and employees in enterprises.

Regarding M&A activities, Minister Nguyen Chi Dzung said that the current legal provisions on this activity were open and transparent to create the most favorable conditions for investors.New provisions have been incorporated in the Investment Law 2020 to simplify procedures, and offering more favourable conditions for investors implementing M&A activities in Vietnam. Principles of investment attraction on the basis of harmonizing the interests of the State and investors while ensuring national security and defense are also provided in the Law.

On improving the competitiveness of the economy, Minister Nguyen Chi Dzung said that the opening of the service market of Vietnam was implemented in accordance with WTO commitments.However, Vietnam has committed to opening the market further in a number of new-generation FTAs which ​​have been signed recently.Regulations on market access for foreign investors are also provided in the Law on Investment 2020 with the principle of negative listing. Accordingly, foreign investors are allowed to apply the same market access conditions as domestic investors except for sectors in the list of industries and trades in which business and investment is conditional or inaccessible.The Ministry of Planning and Investment is concretizing this content in the Decree guiding the Investment Law 2020 and welcomes all contributions from the business community to further improve this provision.

Vietnam wishes to have the companionship of development partners, experts, scientists and investors to cooperate for sustainable development towards success and efficiency on the way of developing the country. Your success is also the success of Vietnam, emphasized Minister Nguyen Chi Dzung./.


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