FDI attraction perspectives

It has been 30 years since the approval of the Law on Foreign Investment and the start for foreign direct investment into Vietnam. However, experts believe it is time for Vietnam to change how it attracts FDI. This was also the key discussion raised at an online conference held in Hanoi on Tuesday regarding perspectives on attracting FDI in the coming time. According to participants, cheap labour and a large labour force is no longer an advantage for Vietnam. It has been proposed to limit industrial projects valued at less than 1 million US dollars. Instead, it is necessary to focus on high-tech projects with high added value, such as information technology, electronics, artificial intelligence and internet of things. In addition, Vietnam needs to be prepared to compete for FDI projects and invest in highly skilled labour in the context of several free trade agreements that are set to take effect and intensify competition within the ASEAN bloc.