16/12/2017 12:54 GMT+7 Email Print Like 0

Workshop seeks to promote links between domestic and FDI firms

The Foreign Investment Agency (FIA) under the Ministry of Planning and Investment held a workshop in Hanoi on December 15 to strengthen links between domestic and foreign direct investment (FDI) enterprises to develop the supporting industry in Vietnam.

The number of domestic businesses joining supply chains for FDI firms remains limited, especially in the key fields of automobile manufacturing and assembling, electronics and industrial machinery, said Nguyen Manh Linh, deputy director of the centre for developing supporting industry enterprises under the Institute for Strategic and Policy Studies of the Ministry of Industry and Trade.

He noted that only a few of domestic enterprises are capable of meeting the quality requirements of FDI companies due to restrictions in production technologies, management system and undiversified products.

Additionally, there are not many assistance programmes from the Government and relevant agencies to increase information exchanges between Vietnamese supporting enterprises and FDI firms, Linh said.

The official suggested local businesses proactively connect with FDI firms and invest in new technologies and human resources while joining supply chains suitable with their development level.

He called on FDI businesses to outline strategies to connect and cooperate with Vietnamese partners and support them to increase corporate governance capacity, technological application, and human resource quality.

The Government should devise preferential policies to promote links between domestic and FDI firms and encourage the expansion of effective models adopted by FDI businesses, Linh said.

He also mentioned measures to improve the investment environment and encourage all economic sectors to invest in the supporting industry.

Meanwhile, FIA Director Do Nhat Hoang underlined the increasing contributions by FDI enterprises to Vietnam’s gross domestic product (GDP), noting that political stability and reform are attractive factors to foreign investors.

Vietnam will focus on drawing selective projects applying high technologies while strictly prohibiting those causing environmental pollution, he said.

Chairman of the Vietnam Association of Foreign-Invested Enterprises Nguyen Mai said that FDI businesses are making up 70 percent of the country’s total export turnover and contributing 18 percent to the State budget collection and 20 percent of the GDP.

They also generated jobs for 3.7 million direct workers and adopted new business production and distribution methods, he added.