|Issuing body:||Prime Minister||Effective date:|
|Official number:||667/QD-TTg||Signer:||Pham Binh Minh|
|Issuing date:||02/06/2022||Effect status:|
Approve the Strategy on foreign investment cooperation in the 2021-2030 period
On June 02, 2022, the Prime Minister issues the Decision No. 667/QD-TTg approving the Strategy on foreign investment cooperation in the 2021-2030 period.
Accordingly, the Strategy sets out targets to raise the ratio of registered investment capital of countries and territories in a number of areas to the total national foreign investment capital to over 70% in the 2021-2025 period and 75% in the 2026-2030 period, including: (i) Asia: Republic of Korea, Japan, Singapore, China, Taiwan (China), Malaysia, Thailand, India, Indonesia, the Philippines; (ii) Europe: France, Germany, Italia, Spain, Russian Federation; and (iii) America: the United States.
To achieve the aforementioned targets, ministries, ministerial-level agencies, government-attached agencies, provincial/municipal People’s Committees need to step up the enforcement of policy groups boosting higher labor productivity, total factor productivity (TFP) to develop the internal capability and competitiveness of the economy.
At the same time, to concentrate on improving Vietnam’s competitiveness evaluation indexes according to the evaluation criteria of the World Bank, the Intellectual Property Organization and World Economic Forum. Thereby, the following specific solutions should be synchronously applied: To strictly control foreign investors’ and foreign-invested enterprises’ acquisition of domestic enterprises, especially big enterprises and enterprises operating in strategic domains; To strictly control investment projects threatening to cause negative impacts on national security and public order, etc.
This Decision takes effect after its signing.
THE PRIME MINISTER
THE SOCIALIST REPUBLIC OF VIETNAM
Hanoi, June 2, 2022
Approving the Strategy on foreign investment cooperation in the 2021-2030 period
THE PRIME MINISER
Pursuant to the June 19, 2015 Law on Organization of the Government; the November 22, 2019 Law amending and supplementing a number of articles of the Law on Organization of the Government and the Law on Organization of the Local Administrations;
Pursuant to the Politburo’s Resolution No. 50-NQ/TW of August 20, 2019 on the orientations for institutional and policy finalization for higher quality and efficiency of foreign investment cooperation towards 2030;
Pursuant to the 2021-2030 ten-year socio-economic development strategy adopted at the 13th National Congress of the Communist Party of Vietnam;
Pursuant to the Government’s Resolution No. 58/NQ-CP of April 27, 2019, promulgating its action program for materialization of the Politburo’s Resolution No. 50-NQ/TW of August 20. 2019 on the orientations for institutional and policy finalization for higher quality and efficiency of foreign investment cooperation towards 2030;
At the proposal of the Minister of Planning and Investment,
Article 1. To approve the 2021-2030 Strategy on foreign investment cooperation with the following major contents:
1. To thoroughly study the guidelines at the Politburo’s Resolution No. 50-NQ/TW of August 20, 2019, on the orientations for institutional and policy finalization for higher quality and efficiency of foreign investment cooperation towards 2030.
2. To conform to the 2021-2025 five-year socio-economic development plan, the 2021-2025 plan on economic restructuring and the 2021-2030 ten-year socio-economic development strategy.
3. To closely associate foreign investment attraction with building and developing the independent and self-reliant economy in the spirit of substantive, efficient, intensive and extensive international integration.
4. To concentrate on focal and central foreign investment attraction; to select regions, markets and partners for promotion of development cooperation in the world and regional contexts; to relocate the investment capital flows, reducing the dependence on markets with many risks and potential disputes; to prioritize the connection of global production and supply chains; to attract green investment, high technologies, supporting technologies, modern management and administration methods.
5. To promote and improve the comparative edges, suitable to development trends, to approach advanced international standards and harmonize with international commitments, ensuring synchronism, consistency, publicity, transparency and high competitiveness.
6. To promote foreign investment cooperation in parallel with the process of socio-economic development, growth model renewal, economic restructuring and utmost promotion of internal resources; to closely associate and heighten the national competitiveness, the competitiveness of each sector, each enterprise; to intensify the connection between regions, zones and areas in the country on the basis of comparative edges.
7. To build and form the awareness of “cooperation for joint development”, intensifying the connection of domestic production with the production chains of multi-national groups in order to improve Vietnam’s position in production chain; to raise the localization rates, value added contents of domestic enterprises, organizations and individuals; to heighten the responsibility towards society and environmental protection with a view to raising the efficiency of foreign investment cooperation.
8. To balance the interests of investing parties with the interests of the state and the people in foreign investment cooperation activities in the spirit of interest harmony and risk sharing; to comply with the conditions on sustainable development and security and defense maintenance.
1. General objectives
a/ To attract foreign investment projects applying advanced technologies, new technologies, high technologies of the fourth Industrial Revolution, modern administration with high value added, with positive widespread impacts, connecting global production and supply chains;
b/ To expand markets, making full use of capital, technology, management knowhow and business culture of the foreign investment sector; to heighten the competitiveness of the economy, enterprises and domestic products; to boost domestic industrial, agricultural and service sectors, establishing and enhancing the role of Vietnamese enterprises in international community;
c/ To comprehensively raise the efficiency and quality in the attraction and use of foreign investment capital, increasing the contribution rate of foreign investment sector in socio-economic development, commensurate to the enjoyed privileges and supports;
d/ To build and develop innovation centers, financial hubs of regional and international levels, creating socio-economic development impetus for the coming period.
2. Specific objectives
a/ To achieve the specific objectives stated at the Politburo’s Resolution No. 50-NQ/TW of August 20, 2019 on orientations for institutional and policy finalization for higher quality and efficiency of foreign investment cooperation towards 2030;
b/ To raise the ratio of registered investment capital of countries and territories in a number of areas to the total national foreign investment capital to over 70% in the 2021-2025 period and 75% in the 2026-2030 period, including: (i) Asia: Republic of Korea, Japan, Singapore, China, Taiwan (China), Malaysia, Thailand, India, Indonesia, the Philippines; (ii) Europe: France, Germany, Italia, Spain, Russian Federation; and (iii) America: the United States;
c/ To increase by 50% the number of multinational groups in the 500 largest groups in the world ranked by Fortune magazine (the US), which are present and operating in Vietnam;
d/ By 2030, to be among three top ASEAN nations and 60 leading world countries under the World Bank’s business environment ranking.
III. SOLUTIONS TO HIGHER EFFICIENCY OF FOREIGN INVESTMENT COOPERATION
1. To effectively apply the solutions already promulgated
a/ The Politburo’s Resolution No. 50-NQ/TW of August 20, 2019 on the orientations for institutional and policy finalization for higher quality and efficiency of foreign investment cooperation towards 2030;
b/ The Politburo’s Resolution No. 23-NQ/TW of March 22, 2018 on the orientations for formulation of national policy on industrial development towards 2030 and a vision towards 2045;
c/ The 12th Party Central Committee’s Resolution No. 10-NQ/TW of June 3, 2017 on the development of private economy into an important motive force of the socialist-oriented market economy;
d/ The Government’s Resolution No. 58/NQ-CP of April 27, 2020, promulgating the action program for implementation of the Politburo’s Resolution No. 50-NQ/TW of August 20, 2019 on the orientations for institutional and policy finalization for higher quality and efficiency of foreign investment cooperation towards 2030;
dd/ The Prime Minister’s Decision No. 1851/QD-TTg of December 27, 2018, approving the Scheme” Boosting the transfer, mastery and development of technologies from foreign countries into Vietnam in priority branches and domains in the period to 2025, with a vision towards 2030”;
e/ The Prime Minister’s Decision No. 67/QD-TTg of October 2, 2019, approving the Scheme “Impacts of the US-China trade disputes on the attraction of foreign direct investment into Vietnam”.
2. To improve the business and investment environment, raising the quality, efficiency and competitiveness of the economy
To concentrate on improving Vietnam’s competitiveness evaluation indexes according to the evaluation criteria of the World Bank, the Intellectual Property Organization and World Economic Forum; to focus on low indexes on institutions, infrastructures and commodity market. Thereby, the following specific solutions should be synchronously applied:
a/ On the institution
- To intensify the proactive, vigorous, equal and substantive involvement of ministries, ministerial-level agencies and localities with a view to constructing a fair, open and transparent business investment environment. To ensure a stable, unified, synchronous and more and more complete investment and legal environment, promptly adapting to new matters, handling inadequacies to heighten the foreign investment quality and efficiency.
- To improve the predictability and transparency in the course of elaborating normative documents; to formulate the process for monitoring, assessing the conformity, impacts and quality of policies and the effect and efficiency of policy enforcement.
- To study the mechanism for flexible application of business investment procedures on the post-audit principle to appropriate business lines and sectors in order to create competition in the course of attracting and using foreign investment capital.
- To strictly control the promulgation of business investment conditions for conditional investment business lines. To study further reduction of unnecessary and irrational business lines and investment business conditions, ensuring the full and consistent exercise of investors’ rights to business freedom under provisions of law.
- To finalize legal provisions on prevention of investment disputes; to propose solutions to settle problems, disputes of investors for early warning of danger of arising disputes between the state and foreign investors.
- To promulgate policies on creating legal corridors for the development and management of new investment forms and modes suitable to international practices.
- To strictly control foreign investors’ and foreign-invested enterprises’ acquisition of domestic enterprises, especially big enterprises and enterprises operating in strategic domains; to strictly control investment projects threatening to cause negative impacts on national security and public order.
- To step up the institutional formulation and finalization, creating full and comprehensive legal bases for building and developing e-government, towards digital Government and digital economy in Vietnam.
- To review and evaluate the superior institutional solutions already experimented or applied with good results, proceed with the institutionalization thereof for application nationwide; to assess the preferential treatments which create the institutional inequality between sectors in order to narrow then get rid of unequal and inconsistent institutional conditions.
b/ On infrastructure
- To plan the infrastructural development towards synchronism and modernization, with strategic thinking and long-term vision, in association with regional linkage with a view to creating the development spillover impetus.
- To complete institutions and policies so as to create favorable conditions for various economic sectors, including foreign investment sector, to invest in infrastructure construction and dealing in various forms, attaching importance to public-private partnership (PPP) model, studying the formulation of risk-sharing mechanism suitable to international practices.
- To promulgate lists of projects prioritized for attraction of investment in infrastructure development with a view to developing the system of high-quality infrastructures, such as traffic infrastructures, telecommunications infrastructures, information, water and electricity supply, logistics… technologies in order to reduce the transport costs and input expenses for enterprises, raising the competitiveness of the economy.
c/ On the commodity markets
- To diversify the export markets, making full use of advantages brought about by concluded free trade agreements, particularly such agreements of new generation as the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), Vietnam- Europe Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP).
- To scrutinize the tariff and non-tariff barrier policies and measures, ensuring the integration commitments as well as interests of domestic enterprises, raising the efficiency of cooperation with the foreign investment sector.
- To fully form and efficiently operate assorted markets in service of commodity production, especially markets directly related to foreign investment such as financial, land, labor, technological… markets.
- To intensify the market liberalization of commodity production factors; to ensure the market principle in access to land, capital and opportunities to join the markets.
3. To develop scientific, technological and innovation eco-systems
- To promote and raise the awareness of administrations at various levels about the importance of innovation and innovation start-up. To build and develop the National Innovation Center, linking with regional, local, enterprise innovation centers with a view to developing the start-up[ and innovation eco-systems, supporting enterprises to approach the technological renewal, innovation start-up activities.
- To resolutely and efficiently realize the Government’s Resolution No. 50/NQ-CP of April 17, 2020 on the action program for materialization of the Politburo’s Resolution No. 52-NQ/TW of September 27, 2019 on a number of undertakings and policies on proactive participation in the fourth Industrial Revolution.
- To build and develop the scientific, technological and innovation eco-systems with flexible management mechanisms suitable to digital business environment so as to create favorable space for innovation and innovation start-up, laying the foundation for attracting and developing high technologies.
- To work out policies to encourage cooperation, technological transfer and administration based on agreement and voluntariness for Vietnamese enterprises. To raise the technical norms and standards on products, environment and resource protection and energy saving in harmony with regional and world standards.
- To finalize the legal framework on establishment, protection and commercialization of intellectual property rights in order to ensure the rights and interests of organizations and individuals participating in scientific, technological as well as innovation activities.
4. To renew and heighten competition in foreign investment attraction
- To elaborate policies on attraction of foreign investment with balance and rationality between regions, zones; to ensure the foreign investment attraction and cooperation in strict accordance with orientations, planning, development requirements and the target of improving Vietnam’s position in global production chains.
- Preferential investment policies should be considered, based on the output results such as value added, hi-technological components, research and development, technological transfer to Vietnamese enterprises, support for Vietnamese enterprises in participation in supply chains at different levels.
- To proceed with incremental transition from attraction of foreign investment in accordance with existing domestic product groups to anticipation and formulation of mechanisms and policies for higher capacity to attract investment in the production of products with development priority in each period.
- To work out institutions and policies for economic zones, industrial parks, hi-tech parks, information technology parks, hi-tech application agricultural zones and other similar models towards clearly identifying focuses of development and dominant mechanisms as well as policies suitable to the peculiarities of each model, ensuring the linkage and synchronism with other regions.
5. To develop supporting industries, promote linkage and spillover
- To assess current technological status, trends and market, formulating the strategy of prioritizing the development of a number of specific fields of the supporting industries according to each period so as to prioritize development and avoid scattered and inefficient investment.
- To formulate mechanism of encouragement and satisfactory preferences in order to increase the linkage between foreign investment and domestic investment, domains prioritized for investment attraction; to raise the absorbing capability then incrementally proceed to technological self-reliance; to develop sector-linkage clusters, value chains, contributing to raising the domestic added value, competitiveness of products and national position in global value chains.
- To further complete the technological transfer-legal environment on the basis of establishing the synchronous system of documents in enforcement of policies in support of enterprises to invest in technological renewal; to promote the formation and development of intermediate organizations, creating conditions for development of science and technology market, encouraging enterprises in technological transfer, application and renewal, promoting the commercialization of results of technological research and development; to form joint-ventures, linkages between foreign invested enterprises and domestic research institutes as well as universities.
6. To promote the internal capability and make full use of comparative edges with a view to improving the efficiency of foreign investment cooperation
a/ To step up the enforcement of policy groups boosting higher labor productivity, total factor productivity (TFP) to develop the internal capability and competitiveness of the economy, specifically:
- To study the establishment of the National Productivity Committee and formulate the strategy to raise the national productivity up to 2030 and a vision towards 2045.
- To step up scientific and technological research and application, and innovation. To lay stress on the role and importance of innovation as a breakthrough of the strategy to heighten the national competitiveness.
- To modernize and market the education and training, including vocational training, attaching importance to raising the professional qualifications, occupational skills and digital technological skills in conformity with practical demands and satisfy the requirements of the fourth Industrial Revolution.
- To intensify international cooperation in the training of specialists contingent, raising productivity to support enterprises in satisfying the requirements of digital transformation.
b/ To boost production and business development; to clearly identify branches, domains and products with leading comparative edges in order to work out proper policies in support of development; to concentrate on raising the labor productivity, competitiveness, technological levels and innovation.
c/ To study the construction of a financial center of regional level
- To study models of international financial centers in the region for flexible application in order to link and promote economic development, ensuring the national security interests.
- To study and formulate institutions, laws and policies of competitive and dominant nature for financial center towards focusing on the factors: (i) ensuring good investment and business environment; (ii) attracting and developing the high-quality financial human resources; (iii) building the system of international-level infrastructures and logistics; (iv) developing the transparent, healthy and strong national finance; and (v) building the brands and fames of international level.
d/ To heighten the capability of domestic enterprises
- To develop a strong domestic enterprise sector capable of international integration; to render maximum support for start-up enterprises, innovation enterprises, small and medium enterprises for joint venture and cooperation with the foreign investment sector, focusing on high technologies, new technologies, advanced technologies and key technologies of the fourth Industrial Revolution, modern services, manufacturing industries, information technologies and financial services.
- To promote and support domestic enterprises for joint ventures, cooperation through capital contribution, purchase of shares or contributed capital of foreign-invested enterprises in branches and domains using high technologies, new and advanced technologies, then proceed to own and master the technologies.
- To orientate and support domestic enterprises in assessing, selecting and receiving technologies transferred from foreign-invested enterprises, ensuring their compatibility, synchronism and conformity with the objectives of national technological development in each period.
- To establish databases on domestic enterprises capable of supplying raw materials, materials, spare parts and components in the supporting industries for foreign investors to approach and connect.
dd/ To heighten the human-resource quality
- To finalize the labor institution suitable to international practices, ensuring the enforcement of commitments in free trade agreements of new generation. To raise the human-resource quality in order to attract high-quality foreign investment.
- To enhance trainings in profession, skills, disciplines, culture and heighten the awareness for labor forces, especially in branches with foreign investment attraction priority, in conformity with international standards and requirements of foreign investment attraction and use. To study the formulation of mechanism of coordination with big domestic and foreign groups as well as investors in trainings by “order placement”.
- To encourage on-line trainings; recognize the value of on-line learning certificates so as to develop the labor market.
- To encourage foreign-invested enterprises to provide trainings, skill and qualification improvement for Vietnamese laborers to that the latter can undertake important positions in foreign-invested enterprises.
- To encourage the employment of Vietnamese laborers who have worked or studied overseas, especially developed countries, and returned to work in Vietnam. To further expand the linkage networks and study the promulgation of policies to encourage enterprises to employ Vietnamese talents overseas.
- To encourage global vocational training organizations to invest in Vietnam; to step up the ramification of tertiary and vocational trainings; to reform the functions, tasks and organization of education and job-teaching management system in conformity with the requirements of labor market development; to strongly develop the “school in enterprises” model.
- To invest in developing the modern labor market information system, providing maximum support for enterprises in labor attraction, training and recruitment.
7. To heighten the international integration efficiency and Vietnam’s position on international arena
- To proactively effect comprehensive international integration towards higher effect and efficiency, seizing opportunities and surmounting challenges so that international integration makes practical contributions with widespread impacts, really becoming a means in service of sustainable national development on the basis of defense of national sovereignty and security.
- To apply measures for going in company with, and supporting enterprises in the process of integration and enforcement of commitments to international economic integration, promptly listen to the opinions and feedbacks of enterprises on policy matters and problems in international economic integration and the course of negotiation and enforcement of free trade agreements.
- To protect legitimate interests of the Vietnamese State, enterprises and consumers in international economic, trade and investment disputes.
- To formulate and apply trade protection measures with a view to protecting the legitimate rights and interests of domestic enterprises; to study and apply the advantages from international regulations on intellectual property right protection, including geographical indications, origin appellation, label, copyrights, relevant rights…, to protect the intellectual property of Vietnamese individuals and organizations in foreign countries.
8. To modernize and diversify the investment promotion activities
- To continue renewing, completing and raising the efficiency of investment promotion activities. To enhance the coordination and connection between central and local administrations, between regions, between state management bodies and professional associations in investment promotion activities.
- To renew investment promotion activities to be substantive, effective with objectives, central and focal points. The investment promotion activities should be carried out in association with new investment cooperation criteria; to continue maintaining the traditional markets and partners while expanding new markets and new partners.
- To proceed with proactive approach and flexible mobilization through different channels such as influential individuals, investors, business associations, international organizations, first-rank consultancy companies, influential investment funds and individuals in order to attract big groups with quality projects brought into Vietnam.
- To make satisfactory investment with a view to diversifying and modernizing investment promotion activities and modes.
- To intensify dialogue mechanism, renewing and expanding modes of receiving petitions and reports of investors; to definitely and promptly remove difficulties and problems related to projects being underway.
- To scrutinize and restructure the system of existing investment promotion agencies towards professionalism, independence, non-overlapping, non-coincidence with bodies functioning to perform the state management of foreign investment; to consider the possibility of higher association with trade and tourism promotion in a flexible manner, suitable to the requirements and peculiarities of each locality. With regard to potential markets, to study the mechanism of cooperation and exchange towards privatization of investment promotion activities.
- To build sets of national, central and local brands and images in conformity with investment attraction development planning and strategy.
- To cooperate with big groups investing in Vietnam in building the “ambassadors” of investment images for Vietnam in order to take advantage of the influence and brands of prestigious investors.
- To build a set of criteria for evaluation of efficiency of investment promotion activities at central and provincial levels.
9. To raise the effect and efficiency of state management over foreign investment
- To intensify the inspection, examination and supervision of licensing, adjustment and recovery of foreign investment projects, promulgating the regulations on investment preferences and support…, promptly detecting violations with illegal signs; to review the policy enforcement without synchronism and consistence between localities.
- The local management of foreign investment must ensure socio-economic and environmental efficiency, conformity with planning, strict accordance with criteria on project selection and screening…; the strict compliance with legal provisions; the strict accordance with the law-prescribed foreign investment project-licensing, adjustment and termination order and procedures. To complete the investment processes and procedures, which are open but controllable via legal tools.
- To consolidate the foreign investment state management apparatus towards tidiness, elite, effective and efficient operation, with one coordinator at ministries, ministerial-level agencies and localities, meeting the local, inter-sector, inter-regional and national management requirements. To enhance the awareness and unanimity among administration authorities, chiefly the heads.
- To step up the responsibility division, decentralization, authorization and coordination among ministries, ministerial-level agencies and localities in association with intensified examinations and supervisions. To simplify and unify set of forms of enterprises’ periodical reports to competent authorities.
- To definitely handle projects causing environmental pollution, using land inefficiently, suffering business loss for many years, projects not being executed or failing to abide by the commitments. To prevent, early and effectively settle disputes related to foreign investment.
- To complete the system of databases and national information on investment towards synchronism and connection with labor, land, construction, tax, customs, banking, foreign exchange, securities…sectors and with localities. To raise the quality of statistical work, ensuring the timeliness, fullness, accuracy and conformity with international practices; to associate the responsibility of enterprises’ periodical reporting with the post-audit preference regime.
Article 2. Organization of implementation
1. The Ministry of Planning and Investment:
a/ To assume prime responsibility for, and coordinate with relevant units in, elaborating the Prime Minister’s Decision on action program for materialization of the 2021-2030 Strategy on foreign investment cooperation;
b/ To synthesize the situation of implementation of the Strategy and annually report thereon to the Prime Minister; to organize the final review of the implementation of the Strategy to 2025 and identify tasks and solutions for subsequent periods.
2. Other ministries, ministerial-level agencies, government-attached agencies, provincial/municipal People’s Committees:
a/ To continue performing the tasks assigned at: (i) The Government’s Resolution No. 58/NQ-CP of April 27, 2020, promulgating its action program for materialization of the Politburo’s Resolution No. 50-NQ/TW of August 20, 2019; (ii) The Politburo’s Resolution No.23-NQ/TW of March 22, 2018 on orientation for formulation of policy on national industrial development to 2030 and a vision towards 2045; (iii) The Prime Minister’s Decision No. 67/QD-TTg of October 2, 2019 approving the Scheme “ Impacts of the US-China trade disputes on attraction of foreign direct investment into Vietnam”; and under current provisions of law;
b/ To incorporate the viewpoints and objectives of the Strategy into socio-economic development planning, plans and strategies of their respective ministries, ministerial-level agencies and localities;
c/ To make preliminary and final reviews of the implementation of the Strategy in their respective domains and management scopes under the guidance of the Ministry of Planning and Investment; send the annual reports to the Ministry of Planning and Investment for sum-up report to the Prime Minister.
Article 3. This Decision takes effect after its signing.
Article 4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People’s Committees shall implement this Decision.-
For the Prime Minister
Deputy Prime Minister
PHAM BINH MINH