FDI commitments to Vietnam are forecast at $335 billion. Photo: Internet
Actual foreign direct investment (FDI
) in Vietnam could reach a combined $118 billion between 2017 and 2015 when the country enters the aged population period, PhD. Nguyen Thuong Lang from the Hanoi National Economics University (HNEU) has said in a report.
FDI commitments are forecast at $335 billion in the period, the Saigon Times newspaper cited Lang as saying.
Foreign investment flows into Vietnam can reach $13 billion this year, he added.
He recommended Vietnam quickly ratify new-generation free trade agreements such as the EU-Vietnam FTA and join new pacts like the Regional Comprehensive Economic Partnership (RCEP
) in order to lure more foreign investment.
However, the government should say no to overseas projects that pose risks to the environment, apply backward technologies and infringe local laws, the economist noted.
Although the foreign sector plays an increasing important role in Vietnam’s economy in recent years, overseas investors still focus on tapping natural resources, low labor cost and are yet to help advance the country’s science-technology considerably, HNEU Principal Tran Tho Dat said.
He also pointed out that the technological gap and the lack of skilled labor force contribute to the weak linkage between foreign and domestic companies.
Prof. Nguyen Mai, chairman of the Vietnam Association of Foreign-invested Enterprises (VAFIE), told BizLIVE late last year that FDI commitments to Vietnam totaled nearly $300 billion between 1988 and 2016, but actual FDI was just $160 billion.