A security evaluation mechanism will be applied to foreign-invested projects with risks of harming national security, a Party resolution notes.
Illustrative photo (Source: VOV)
General Secretary of the Communist Party of Vietnam Central Committee Nguyen Phu Trong has signed the resolution No. 50-NQ/TW on orientations to perfect institutions and policies to enhance the quality and efficiency of foreign investment cooperation through 2030.
The paper looks to make mechanisms and policies in foreign investment cooperation more competitive, meeting requirements in reforming the growth model and restructuring the economy, protecting the environment, dealing with social issues, and improving the quality, efficiency and competitiveness of the economy.
It encourages the transfer of technology and management methods to Vietnamese firms as well as the use of local labourers while projects damaging the environment and failing to effectively use land will be strictly handled.
The resolution highlights the significant role of the foreign-invested sector in the economy, while stating that the sector is encouraged to develop and cooperate, and compete equally with other economic sectors. P
riority will be given to projects with advanced and environmentally-friendly technology and high added value.
The foreign direct investment (FDI) sector has seen rapid growth with the presence of an increasing number of multinational groups and large-scale projects.
However, it also points out that institutions and policies regarding foreign investment have yet to suit development requirements, adding that the number of small-scale projects with low technology remains high, the sector’s connection with other economic sectors is still loose, and the localisation ratio maintains modest.
To this end, the resolution mentions several solutions, including the synchronisation of the legal system to deal with existing problems, and ensuring equal treatment among foreign and domestic investors.