(Photo: VNA)

Speaking at the event, Deputy Minister of Planning and Investment Nguyen The Phuong said that after 30 years Vietnam opening its door to foreign investors, the FDI sector has become an important part of the country’s economy. In the first half of 2018, foreign investors pour capital into 1,362 new projects, and 507 existing projects and contribute capital to buy shares of Vietnamese businesses in 2,748 projects, with a combined capital of over USD20 billion.

Foreign investments account for 25 percent of the country’s total investments and contribute 20 percent of GDP. Last year, the sector contributed nearly USD8 billion to the State budget, making up 14.4 percent of total revenue.

At present, 58 percent of foreign investments focus on processing and manufacturing, generating 50 percent of industrial production value.

Along with creating jobs and increasing the quality of human resources, FDI enterprises have helped transfer advanced technologies to domestic ones.

However, the transfer work has yet to meet expectations, Phuong stated, adding that foreign-invested enterprises do not create a close linkage with Vietnamese ones yet to participate in the value chain together.

Deputy Director of the Central Institute for Economic Management (CIEM) Nguyen Thi Tue Anh said that pervasive influence from FDI businesses’ technology transfer remains weak, as few Vietnamese businesses gain access to their supply chains.

Therefore, she emphasized the need to create an equally competitive environment so that FDI and domestic enterprises can compete healthily and coordinate in production.

Meanwhile, Nguyen Huu Xuyen from the National Institute for Patent and Technology Exploitation stressed the necessity to soon complete a legal framework to make the National Technology Innovation Fund operate effectively.

The fund must operate as a financial organization and does not hamper businesses’ approach to preferential credit for technology reception, transfer and innovation, he added./.

CPV/VNA