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VBF 2019: FDI has role and responsibilities in sustainable development

Released at: 18:06, 10/01/2020

VBF 2019: FDI has role and responsibilities in sustainable development

Photos: Tuan Minh

Annual Vietnam Business Forum 2019 attended by Deputy Prime Minister Trinh Dinh Dung.

by Minh Do

Deputy Prime Minister Trinh Dinh Dung attended the annual Vietnam Business Forum 2019 with the theme “Roles and Responsibilities of the Foreign-Direct Investment Community in Rapid and Sustainable Development” held on January 10 in Hanoi by the Ministry of Planning and Investment, the World Bank, and International Finance Corporation in Vietnam.

Mr. Dung said the theme of the Forum this year is appropriate as the government’s goal is to improve the quality of growth and ensure macroeconomic stability, especially monetary policy. Vietnam is converting its model from developing in breadth to harmony in breadth and depth on the basis of effectively exploiting natural resources, taking advantage of scientific and technological achievements, increasing workplace productivity and raising the competitiveness of goods and services, and improving the efficiency of the economy in general and the efficiency of investment capital in particular.

Rapid development must, however, go hand-in-hand with sustainable development, implementing a green growth strategy, and ensuring the development of a low CO2 economy and the efficient use of energy. In the process, enterprises and the State must both be active and the government will always accompany the business community in its efforts.

Deputy Prime Minister Trinh Dinh Dung addresses the Forum

2019 was a year of breakthroughs in the implementation of socioeconomic tasks, with economic growth of 7.2 per cent and inflation controlled at 2.79 per cent, among other positive indicators. The foreign investment sector contributed 20 per cent of GDP.

The business environment has been stable over recent years and the number and quality of Vietnamese enterprises have also improved, with many enterprises investing in technology improving markedly.

Besides the positive results, however, challenges remain that require the government be creative and the business community and citizens need to turn challenges into opportunities.

In the context of Industry 4.0, it is important to be aware of trends that will impact new business methods and ideas. High-income consumers will change the structure of consumption, opening up new opportunities where businesses need to be creative, the trend towards technological change needs attention from all of society, and globalization is a new driving force for enterprise development in Industry 4.0 and also the basis of government management to build a business environment that encourages creativity and competitiveness.

The government is to focus on investing in infrastructure development, in particular encouraging investment in education and science and technology towards a circular economy and creative innovation in business.

Policies will be implemented in three areas - agriculture, industry, and services - with the private sector to be the driving force of economic development, with restructuring to take place in the business environment and more focus put on State-owned enterprises (SOEs).

“The government will also complete institutions for foreign investment cooperation in 2020, with specific solutions to continue resolving complex business matters to create new businesses and mobilize resources,” Mr. Dung said. “We will create favorable conditions to support e-government and apply the new green business model. Focus will be given to ensuring resources are released smoothly to increase business capital for manufacturing and business, and we will concentrate on developing an ecosystem of innovation centered around enterprises. The government will also set up an independent working group with the goal of eliminating barriers relating to the business investment, reducing the total number of procedures by 20 per cent each year and administrative costs relating to business investment by 20 per cent.”

For sustainable development, it is necessary to develop support industries by calling on foreign corporations to create conditions for their development, from assisting small and medium-sized enterprises (SMEs) to joining global supply chains.

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