New Party resolution issued to direct flow of foreign investment

Hanoi (VNA) – Party General Secretary Nguyen Phu Trong has signed for issuing Resolution 50-NQ/TW on directions for improving institutions and policies to enhance the quality and effectiveness of foreign investment cooperation to 2030.

The resolution expresses Vietnam’s viewpoints, policies and targets in attracting foreign investment in the new stage.

It also provides the foundation to address the trend of developed countries exporting pollution to developing ones through FDI, as one of the guiding viewpoints mentioned in the resolution is to proactively attract foreign investment in a selective manner, based on the main criteria of quality, effectiveness, technology and environmental protection.

One of the specific targets set by Resolution 50 is to attract 150-200 billion USD of foreign investment in the 2021-2025 period, or 30-40 billion USD each year, and 200-300 billion USD in the 2026-2030 period, or 40-50 billion USD each year.

The disbursement of foreign investment capital should reach 100-150 billion USD during 2021-2025, and 150-200 billion USD during 2026-2030.

To achieve this target, the resolution said institutions and policies on foreign investment attraction must encourage foreign investors to join fields and sectors outside those subject to State protection.

The document outlined criteria to select and prioritise investment, as well as to build mechanisms to assess the possible impacts on national security of certain foreign-invested projects and activities. 

It is noteworthy that besides preferential treatment and incentives for foreign-invested enterprises, the resolution mentioned the principle on providing incentives along with conditions and commitments, and requiring investors to compensate when they break their commitments.

The resolution also emphasized continued protection of investors through such institutions as investment protection treaties with other countries, and building of mechanisms for arbitration and complaint settlements for investors.

Director of the Foreign Investment Agency Do Nhat Hoang said four groups of measures should be taken to fulfill the targets set by Resolution 50.

First, it is necessary to review the legal system to solve the problem of overlapping and inconsistency towards ensuring feasibility.

Second, investment attraction policies should be revised based on the viewpoint of selective attraction. Research is also needed to create breakthrough incentives.

Third, measures are needed to ensure the rights, interests and assets of investors while enhancing investors’ responsibility for complying with the law and contributing to the community.

The fourth group of measures deal with management and monitoring investment activities.

Resolution 50 is expected to make the investment environment more transparent and healthy, which is what genuine investors hope for./.