Ministry of Planning and Investment
FOREIGN INVESTMENT AGENCY
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Friday, 03/02/2023
Key Economic Indicator
34 YEARS OF OPENING THE ECONOMY FOR INTEGRATING AND ATTRACTING FDI
Thursday, 30/06/2022 03:40
34 YEARS OF OPENING THE ECONOMY FOR INTEGRATING AND ATTRACTING FDI

2022 marks the 34th anniversary of Vietnam officially opening its doors to the first wave of direct foreign investment and becoming a bright spot for attracting FDI investors from around the world.

2022 marks the 34th anniversary of Vietnam officially opening its doors to the first wave of direct foreign investment and becoming a bright spot for attracting FDI investors from around the world. Let us take a look back at the following significant milestones in the journey that have resulted in a large number of turning points and significant achievements for the economy and overall development of the country:

▪️ At the end of 1987, Foreign Investment Law was approved by the National Assembly, formalizing foreign capital flows into Vietnam.
▪️ At the start of 1988, the Government tasked the Ministry of Foreign Economic Affairs with evaluating and licensing FDI projects. In the same year, the Ministry of Foreign Economic Affairs issued the first license for a direct foreign investment project, paving the wave for a series of future projects.
▪️ In March 1989, the State Committee for Cooperation and Investment (SCCI) was established to handle FDI projects licensed by the Ministry of Foreign Economic Affairs.
▪️ In 2007, Vietnam joined WTO - a bright moment in the renovation journey when our country officially became the 150th member of the world's largest trade organization. Since then, Vietnam has been ready and confident to integrate, open its economy, and increase international cooperation.
▪️ In 2008, Vietnam welcomed up to 64 billion USD in FDI, which was three times more than in 2007.
▪️ In 2020, Vietnam was ranked 19th in the world in terms of attracting the most FDI.
▪️ During the Covid-19 epidemic in 2021, the Government of Vietnam determined to fight the epidemic with timely measures and issued Resolutions 105/NQ-CP, 128/NQ-CP,... which promote economic development and help the FDI business community remain confident. Despite the epidemic, several large investors decided to invest during the market exploration process.
▪️ Vietnam will remain an appealing destination for foreign capital flows in 2022. In the first five months, 578 newly-licensed projects, 395 adjusted projects, and 1339 enterprises contributed capital by shares. Vietnam received a total of 11,7 billion USD in foreign direct investment (FDI). The newly-licensed investment capital was 4,1 billion, the adjusted capital was 5,6 billion, and the share purchase capital was 1,98 billion.

 

The Government always promotes an open business investment environment and policies that are flexible. The Law on Investment, which combines the Laws on Domestic and Foreign Investment, in particular, established equality between domestic and FDI enterprises. Furthermore, the state gradually reduced corporate income tax in order to improve the investment climate. Moreover, in order to build trust with foreign partners, domestic enterprises must strive to improve capacity in all areas, from technology to the level of workers and managers.

 

There is no doubt that FDI has a big impact on the economy's growth. It helps Vietnam produce and export more, brings in more money for the Government, and gives people jobs. It also helps Vietnam improve its status, role, and position in the international community.

 

 

 

 

Theo FIA
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