Vietnam attracted more than 20 billion USD in FDI in first half of 2018 - Illustrative image

The capital was poured into 1,362 new projects and 507 existing ones and used to contribute capital and buy shares in domestic companies, said Deputy Minister of Planning and Investment Nguyen The Phuong at a conference on technology transfer in the FDI sector in Hanoi on June 25.

According to him, after 30 years Vietnam of opening its door to foreign investors, the FDI sector has become an important part of the economy.

To date, the country has attracted nearly 26,000 projects with a registered capital of 326 billion USD. Disbursement is estimated at 180 billion USD.

Foreign investment accounts for 25 percent of the country’s total investments and contributes 20 percent of GDP. Last year, the sector contributed nearly 8 billion USD to the State budget, 14.4 percent of total revenue.

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

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

However, the transfer work has yet to meet expectations, Phuong stated.

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

She emphasised the need to create an equally competitive environment so that FDI and domestic enterprises can compete healthily and coordinate in production.

(VNA)