Resolution No. 50-NQ/TW 2019 orientations for completing policies of foreign investment cooperation by 2030

RESOLUTION OF THE POLITICAL BUREAU
PROVIDING ORIENTATIONS FOR COMPLETING INSTITUTIONS AND POLICIES, AND IMPROVING THE QUALITY AND EFFICIENCY
OF FOREIGN INVESTMENT COOPERATION BY 2030

I – THE SITUATION AND ITS CAUSES

1. Over 30 years of renovation, our Party and State have issued many guidelines, policies and laws to attract and manage foreign investment, create a favorable business and investment environment, gradually approaching to international practice. The foreign-invested economic sector has developed rapidly and effectively, becoming an important part of the economy, contributing positively to the socio-economic development of the country. 

Foreign investment activities have been flourishing with many hi-tech multinational corporations and large enterprises investing in our country; capital size and project quality have been increased, contributing to creating jobs and income for employees; improving production capacity and productivity; increasing state budget revenues to stabilize macro economy; promoting economic restructuring and innovating the growth model; enhancing Vietnam's position and reputation in the international arena.

2. However, the mobilization, management and operation of foreign investment still have limitations and emerging problems. Institutions and policies on foreign investment are not in accordance with development requirements. Preferential policies are still un-concentrated, inconsistent and unstable. The investment and business environment and the competitiveness has been improved, but still limited; the quality and efficiency of attracting and managing foreign investment are not high. Socio-economic infrastructure and high-quality human resources have not met the requirements; there remains the lack of essential social and cultural institutions. The mechanisms and capacity to handle disputes remain less effective. The organizational structure and capacity to attract and manage foreign investment are inadequate, dispersed, and unable to meet the requirements and lack of proactivity and professionalism. 

The number of small-scale, low-tech, and labor-deficient projects is still large; the distribution is uneven; the ratio of implemented capital per registered capital is still low. The proportion of contributions to the state budget tends to decrease. Connectivity and interaction with other sectors of the economy are not close, while the spillover effect on productivity and technology is not strong; localization rate remains low. The transfer pricing, illicit investment and falsified investment are increasingly sophisticated and tend to increase. Some enterprises and projects have wastefully used resources and land, violated policies and law provisions on labor, wages, taxes, social insurance, environment...; many complex domestic and international disputes and complaints have arisen. The development and promotion of the role of party organizations, trade unions, socio-political organizations and socio-professional organizations in the foreign-invested economic sector have some difficulties.

3. The abovementioned limitations and weaknesses are caused by many reasons, which mainly are subjective causes. The awareness of all levels, sectors and the whole society is still insufficient and inconsistent; the mobilization of foreign investment lacks selection. The thinking and orientation of innovation as well as the improvement of relevant mechanisms, policies and laws have not met practical requirements without comprehensive implementation; many regulations are still overlapping and contradictory. The capacity of the officials in charge of attracting and managing foreign investment in many places is still limited, lacking proactivity and creativity; analysis and forecasting capabilities are still inadequate. Inspection and handling of violations remain not strictly sometimes and somewhere. 

II- VIEWPOINTS AND OBJECTIVES

1. Viewpoints

- Foreign-invested economic sector is an important component of Vietnam's economy, encouraged and facilitated for long-term development, healthy cooperation and competition with other economic sectors. The Government respects and protects legitimate rights and interests of investors; ensures harmonization of interests of the Government, investors and employees in the enterprises.

- Building and perfecting institutions and policies on foreign investment in accordance with development trends, approaching international standards and harmonizing with international commitments, ensuring the consistency, publicity, transparency and high competition.

- Proactively attracting and selectively cooperating on foreign investment, taking quality, efficiency, technology and environmental protection as the main evaluation criteria. Priority is given to projects with advanced technology, new technologies, high technology, clean technology, modern management, high added value, spreading and connecting with global production and supply chains.

- Multilateralization and diversification of partners and forms of investment, interwoven benefits in foreign investment cooperation and organic connection with domestic economic zones shall be focused in consistency with the economic restructuring orientations and sustainable development goals; ensuring environmental protection, national defense, security, welfare, social order and safety and improving the independence and autonomy of the economy.

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