Viet Nam Industrial Investment Report and Investment Monitoring Platform launched
HO CHI MINH CITY, 7 August 2013 – Over a hundred participants attended the launch of the latest Viet Nam Industrial Investment Report and Investment Monitoring Platform, organized today by the United Nations Industrial Development Organization (UNIDO) and the Ministry of Planning and Investment.
The Report confirms the essential role of Foreign Direct Investment (FDI) in creating jobs and improving financial resources, access to technology and managerial know-how. It also suggests that the majority of foreign invested enterprises are heavily dependent on imported capital and intermediate inputs, whilst being engaged in the production of low value-added manufacturing activities. This dependency is the result of the lack of local supporting industries, a structural weakness that not only affects foreign invested enterprises but the economy as a whole.
The report calls for the periodic and systematic collection of evidence in order to understand the nexus between export orientation, employment creation, value addition and productive efficiency in sectors with extensive foreign direct investment. It stresses the need to focus on human resources and the development of skills, as well as the need to formulate a long-term plan with incentives for tailor-made investments in high value-added manufacturing activities.
The paper also suggests that potential investors become aware of the investment opportunities in Viet Nam mainly through contact with the existing investor community. It points out that while investment promotion stakeholders should keep up their current efforts to have direct contact with prospective investors, they should put more emphasis on caring for existing investors, who act as country advocates. In this context, one of the report’s main policy recommendations concerns the need to continuously strengthen the investment promotion framework and its advocacy functions through the empowerment of the Ministry’s Foreign Investment Agency and other FDI management authorities. More effective investment promotion policies are essential to the promotion of quality FDI inflows to the country, and they should be based on improved reporting mechanisms and strengthened after-care support services.
For more information, please contact:
Le Thi Thanh Thao
National Programme Officer
UNIDO Viet Nam Country Office
Le Thi Hai Van
Director of Statistics and Information Division
Foreign Investment Agency, Ministry of Planning and Investment