Viet Nam has set top priority for projects that are environmentally friendly, have low fuel consumption, and use a low proportion of cheap labour, according to Dang Huy Dong, deputy minister of Planning and Investment.

“The orientation focuses on foreign development investment (FDI) high-tech projects of high additional value and friendly to the environment,” Dong said. “Projects with low fuel consumption and less need for usage of cheap labour will also be given priority.”

All of these criteria would promote sustainable development, Dong told the Viet Nam Investment Review.

As for the second top priority, the country plans to focus on attracting investors to the industrial sector and its support industries.

It also will encourage sectors to join in a comprehensive group.

“A comprehensive group of several industrial sectors could help to increase additional value, boost the development of support industries and lower the trade deficit by reducing the volume of imported materials,” Dong explained.

The concentration of sectors in a group could help to reduce transportation costs as well, he continued.

Dong called for improvement in the legal framework in order to ensure that the orientation remains practical.

He said the existing legal framework for FDI investment, which treats unqualified investors the same as highly qualified ones, is not appropriate in the new economic context.

In several localities, the emphasis on the political factor on selection of FDI projects led to unrealistic projects out by unqualified investors, Dong said.

“We have begun new policies that create incentives to qualified investors whose projects are considered essential for the country’s benefit and can meet requirements for this new orientation,” he said.

Recently, many projects related to hi-tech electronic manufacturing, software development and clean energy have come to Viet Nam.

Investment from Intel, General Electronics, Compal and First Solar shows a new trend of FDI flow, according to experts, even though the country suffers from a shortage of trained high-tech employees.

Dong said that the company products export to the world market and it would help prove that Viet Nam had been recognised as part of the global supply chain.

“For the coming time, we will attempt to seek investment from global groups, such as Intel or Samsung, who are high-tech and environmentally friendly,” he said.

Investment in research and development (R&D) establishment has also become a new trend in FDI in Viet Nam, with international groups including HP, Samsung, Robert Bosch and Nokia.

“The existence of R&D centres of these groups is significant for orientation for human resources training,” Dong said.

Experts believe the trends will help the country become a manufacturing centre instead of just a destination for processing work via subcontracts.

Source: VNS