Vietnam plans to improve its legal framework to create a favorable investment environment and help the State better manage investment activities, said an official from the Ministry of Planning and Investment at a seminar on May 16 in Hanoi.
Many experts said the recovery of foreign direct investment (FDI) in 2013 was not sustainable and growth in Vietnam was lower than other regional countries. In the first four months of this year, FDI fell 41 percent to USD 4.85 billion while FDI disbursement continued to grow by 6.7 percent to USD 4 billion against the same period last year.
Deputy Minister of Planning and Investment Dang Tien Dong said Vietnam faced challenges in attracting investors, competing with regional and global competitors, and simplifying administrative procedures.
To improve the investment climate and state agencies’ capacity to manage foreign capital, participants agreed that obstacles in investment procedures should be examined.
Do Nhat Hoang, director of the Foreign Investment Agency, said that while Vietnam had a strict licensing process for FDI, management of operations was not strict enough. Therefore, the country should reform administrative procedures, improve infrastructure, develop supporting industries and focus on human resource training.-