THE CENTRAL COMMITTEE | THE COMMUNIST PARTY OF VIETNAM |
No.: 50-NQ/TW | Hanoi, August 20, 2019 |
I – ACTUAL SITUATIONS AND CAUSES THEREOF
1. Over the period of more than 30 years of innovation, our Communist Party and Government have promulgated a lot of policies and regulations with a view to attracting and managing foreign investment, creating favorable business and investment environment as well as gradually accessing international practices. Foreign-invested economic sectors have rapidly and efficiently grown, thereby becoming one of the most important contributors of the national economy as well as making positive contribution to the national social-economic development.
Foreign investment activities are more and more lively and exciting. A lot of multinational companies and large firms that adopt emerging technology make investments in Vietnam; there is a considerable increase in investment scale and quality of projects, thereby creating and improving jobs and income for workers, improving production capacity, increasing state budget revenues, achieving the macroeconomic stability, promoting economic restructuring and innovation-based growth models, and strengthening and enhancing Vietnam’s position and prestige in international markets.
2. However, there are still unsolved issues and difficulties arising in the course of attraction and management of foreign investment activities. Applicable regulations and policies for foreign investment cannot correspond to development requirements. Incentive policies are still not consistent and stable. Although business and investment environment, and competitive capability have been improved, they are still limited. The attraction and management of foreign investment are not really effective. Demand for social-economic infrastructure and high quality human resources is not yet met; essential social and cultural institutions are not yet available. Efficiency and effectiveness of mechanisms for dispute settlement as well as capability to settle disputes are still low. Managerial agencies are inadequate, dispersed and incapable of meeting investment attraction and management requirements, and lack initiative and professionalism.
There are a lot of small-scale projects that adopt low and labour-intensive technology, are unreasonably arranged and have a low ratio of exercise capital to registered capital. The contribution to state budget is forecasted to be decreased.
The foreign investment lacks close cooperate and interaction with other economic sectors; capacity and technology spillover effects appear weak; local content requirements are not satisfied. Price transfer and illegal investment activities are more and more sophisticated and seem to grow. Some enterprises and projects waste resources, land area and violate regulations and laws on labour, salary, taxation, social insurance and environment, etc.; there are a lot of complicated domestic and international disputes and complaints. Difficulties arise in the course of development and promotion of role of units of the Communist Party, Trade Union, socio-political organizations and socio-professional organizations in foreign-invested economic sectors.
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Mọi chi tiết xin liên hệ: ĐT:(028) 3930 3279DĐ:0906 22 99 66
1. Viewpoints
- Foreign investment sector is one of the most important contributors of Vietnam’s economy, is encouraged and facilitated with a view to promoting its long-term development, cooperation and fair competition with other economic sectors. Investors shall have their rights and legitimate benefits protected by Vietnam's Government; the harmony between the State interests and those of investors and employees should be ensured.
- Establish and improve regulations and policies for foreign investment which should correspond to development trends, may access international standards, be conformable with international agreements, consistent and transparent, and encourage competition among business entities.
- Take initiative to promote selective attraction and cooperation in foreign investment. Investment results shall be evaluated according to quality, investment efficiency, technology and environmental protection criteria. The priority shall be given to projects that adopt advanced, emerging, high or clean technology, apply modern management methods, and have high value-added and positive impacts on global production and supply chains.
- Diversify investment partners and investment forms; benefits gained from foreign investment cooperation should be associated and connected with domestic economic sectors, conformable with economic restructuring orientations and sustainable development objectives as well as meet requirements regarding environmental protection, national defense and security, public order, social security and safety, and enhance economic independence and autonomy.
- Improve the leading role of the Communist Party, effectiveness and efficiency in state management, the role of Vietnamese Fatherland Front and of socio-political organizations, and promote the creativity and dynamism of citizens and enterprises in the improvement, enforcement and supervision of implementation of regulations and policies for foreign investment attraction and cooperation.
2. General objectives
Improve regulations and policies for foreign investment cooperation that ensure economic competition and international integration, correspond to the adoption of new growth models, meet economic restructuring and environmental protection requirements, effectively settle social issues as well as enhance productivity, quality, effectiveness and competitiveness. Basically deal with unsettled issues and difficulties that arise in the course of formulation, improvement and implementation of regulations and policies for foreign investment cooperation. Create business environment and competitiveness meeting standards of ASEAN-4 and ASEAN-3 countries by 2021 and 2030 respectively.
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Mọi chi tiết xin liên hệ: ĐT:(028) 3930 3279DĐ:0906 22 99 66
The foreign investment sector is expected to achieve the following primary objectives:
- Total registered capital is expected to reach USD 150 - 200 billion (approximately USD 30 - 40 billion/year) in the 2021 – 2025 period, and USD 200 – 300 billion (approximately USD 40 – 50 billion/year) in the 2026 – 2030 period.
- Total exercise capital is expected to reach USD 100 - 150 billion (approximately USD 20 - 30 billion/year) in the 2021 – 2025 period, and USD 150 – 200 billion (approximately USD 30 – 40 billion/year) in the 2026 – 2030 period.
- The expected percentage of enterprises that adopt advanced technology and modern management methods, and meet environmental protection requirements with a view to adopting high technology is 50% and 100%, compared with those in 2018, in 2025 and 2030 respectively.
- The localization rate is expected to rise from the existing rate of 20 - 25% to the rate of 30% and 40% in 2025 and 2030 respectively.
- The percentage of skilled employees in the workforce is expected to rise from 56% in 2017 to 70% in 2025 and 80% in 2030.
III-PRIMARY SOLUTIONS AND TASKS
1. Improve general regulations and policies for foreign investment
- Establish a consistent legal framework to deal with existing issues and difficulties. Amend regulations on investment conditions and procedures, and concepts of investment activities, lists of areas, business sectors and entities eligible for investment incentives provided in laws on foreign investment and relevant laws with a view to ensuring their consistent implementation and conformity with international agreements to which Vietnam is a signatory.
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Mọi chi tiết xin liên hệ: ĐT:(028) 3930 3279DĐ:0906 22 99 66
- Improve laws and regulations on investment, securities and foreign exchange management towards the clear differentiation between foreign direct investment and foreign indirect investment, the consistency between the law on enterprises and the law on foreign exchange management in terms of purchase and transfer of shares.
2. Improve regulations and policies for investment attraction
- Compile the list of areas in which the foreign investment is restricted or banned which should be conformable with international commitments; foreign investors that make investment in areas other than those in such list shall receive the same treatment as domestic investors. Foreign investors are encouraged to make investment in industries/areas in which patent protection is not required by Vietnam.
- Formulate investment criteria for selecting investment areas given priority in conformity with local/sector/area development orientations or plans. Formulate mechanisms for national security assessment and review process applicable to foreign-invested projects or foreign investments that has caused or may cause adverse impacts on the national security.
- Review and modify investment incentive mechanisms/policies; formulate mechanism for encouraging enterprises that have good performance of business operations and strictly complied with commitments; there is difference in incentives between different investment sectors/areas. There are incentive policies for technology cooperation and transfer should be made on the basis of voluntary agreements. Rules of investment incentives shall be applied in association with specific conditions/commitments and inspection mechanisms, and request for compensation in case of breach of commitments.
- Formulate regulations and policies for investment incentives that are really considerable and internationally competitive so as to facilitate the attraction of investment in large-scale projects, nationally important projects or those adopting high technology, etc., attract strategic investors and multinational companies that are expected to make investment, and establish their offices and R&D centers or innovation centers in Vietnam.
- Formulate appropriate incentive policies so as to strengthen the linkage between foreign investment and domestic investment, and promote foreign investment in prioritized areas; develop industrial clusters and value chains with a view to increasing the domestic value added and the competitiveness of domestic products as well as Vietnam’s position in the global value chain. The transfer of technology and management to Vietnamese enterprises is encouraged. Specific incentive policies shall be applicable to foreign-invested enterprises that provide training and improving skills for Vietnamese workers, or employ Vietnamese workers who have worked or attended training courses in advanced countries.
- Improve law regulations on supporting industries, startups and innovation. Domestic enterprises shall be supported in cooperating with foreign-invested enterprises and improving their capacity to adopt new technologies with a view to gradually taking the autonomy in technology and taking part in the global value chain.
- Formulate policies for attraction of foreign investments in regions/areas in an appropriate manner; ensure that foreign investment attraction and cooperate are conformable with development requirements, orientations and plans. Specific incentive policies should be formulated to attract foreign investments in infrastructure systems in the Northern Highlands, Central Highlands and Mekong Delta.
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Mọi chi tiết xin liên hệ: ĐT:(028) 3930 3279DĐ:0906 22 99 66
- Continue study and reform regulations and policies for economic zones, industrial parks, hi-tech zones, hi-tech agricultural zones and similar models with a clear determination of primary development objectives and special policies/mechanisms which are conformable with each model and ensure its linkage and conformity with other areas.
- Diversify and promote public-private partnerships (PPP) in infrastructure investment projects, mergers and acquisitions (M&A) for foreign investors. Pilot mechanisms for new investment methods and business models shall be adopted with the aims of taking the best advantages of the Fourth Industrial Revolution.
3. Improve regulations and policies for protecting investors and burdening them with responsibility
- Consider amending regulations regarding rights, obligations, acceptance and protection of lawful ownership of property, intellectual property rights, investment capital, income and other legitimate interests of investors and relevant entities in conformity with international commitments. Additionally, regulations on penalties for violations must be promulgated.
- Consider amending law regulations on labour, employment and salary, ensuring legitimate interests of both employers and employees in a transparent manner and meeting international integration requirements. Distance in region-based minimum wages between regions must be reasonably minimized with the aims of decreasing the concentration of workers in large cities and relieving infrastructure burdens. Responsibility of infrastructure investors and foreign-invested enterprises in the course of construction of social housing, houses for workers, nursery schools, health, cultural and sports facilities, etc. serving workers must be elaborated.
- Stipulate investors’ responsibility for environmental protection in the course of making investment, executing projects and during the term of each project in accordance with applicable law regulations.
4. Improve investment management regulations and polices
- Improve the capacity to make analysis and forecasts of agencies in charge of formulating and promulgating regulations and policies; promptly promulgate regulations governing new economic relations and new business models or methods, etc. so as to facilitate investors' operations and the performance of state management tasks.
- Review and improve regulations on antitrust in conformity with international practices; on satisfaction of economic concentration in accordance with the competition law; on satisfaction of national defense and security by foreign investors and foreign-invested enterprises that make capital contributions, purchase shares, engage in merger or acquisition of enterprises in Vietnam.
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Mọi chi tiết xin liên hệ: ĐT:(028) 3930 3279DĐ:0906 22 99 66
- Establish mechanisms for prevention and settlement of queries, complaints and claims of investors. Enhance quality and efficiency of regulations on dispute settlement, and organize implementation of such regulations. Improve the legal framework for efficiently dealing with difficulties concerning projects in which foreign investors have made commitments to transfer their assets to Vietnam’s government or Vietnamese party without compensation, and dealing with cases where foreign investors are absent or evade fulfilling their obligations while making investments in Vietnam.
- Improve assignment, decentralization, authorization and cooperation mechanism between state regulatory authorities; adopt single-window system and inter-agency single-window system. Establish criteria for assessing efficiency of foreign investments in terms of economic, social, environment, national defense and security aspects, etc. Improve regulations on management and supervision of foreign investments, providing for responsibility of ministries and local governments to take charge and cooperate in management and supervision of foreign investments.
- Formulate mechanisms and policies for protecting domestic distribution markets, thereby facilitating development of domestic enterprises and compliance with international commitments.
5. Improve efficiency of investment promotion
- Continue reviewing, improving and increasing efficiency of investment promotion activities. Review and restructure existing investment promotion agencies (without establishment of the new ones) towards professionalism, independence from and non-overlapping with other agencies in charge of managing foreign investments; consider the possibility to promote investment associated with tourism promotion activities in a flexible manner and in conformity with the facts and specific conditions of each local area.
- Strengthen the cooperation and linkage between central governments and local governments, between regions, between state regulatory authorities and professional associations in conducting investment promotion activities. Proactively conduct investment promotion activities with specific objectives and focus associated with new investment cooperation criteria; maintain traditional markets and partners and at the same time, expand markets and cooperate with new partners. Diversify investment promotion activities and methods; attach a special importance to in-country investment promotion activities with specific successful cooperation projects. Make appropriate investment in promotion activities. National, regional and interdisciplinary investment promotion activities shall be given priority.
- Publish information relating social-economic, legislation, policy, planning and market issues, etc. Strengthen mechanisms for dialogue, change and adopt new methods for receiving complaints and feedbacks from investors; promptly and definitely deal with difficulties and queries concerning in-progress projects.
6. Improve effectiveness and efficiency of state management of foreign investment
- Regulatory authorities at all levels must strictly comply with the law on investment and other laws concerning foreign investment, and shall not involve in any international complaints and disputes. There are solutions for dealing with the inconsistent implementation of regulations and policies between central governments and local governments or between local governments. Any acts of licensing, modifying, managing or negotiating foreign investment projects or promulgating regulations on investment incentives and subsidies, etc. inconsistently with authority or laws shall be prohibited. All negotiations and agreements on Government Guarantee and Undertakings (GGU), conclusion of BOT contracts, exclusivity agreements, etc. must comply with law regulations.
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Mọi chi tiết xin liên hệ: ĐT:(028) 3930 3279DĐ:0906 22 99 66
- Intensify inspection and supervision activities associated with enhanced accountability of local governments and leading persons for compliance with policies and guidelines of the Communist Party and State laws concerning foreign investment. Definitely deal with projects that cause environmental pollution, inefficiently use land area, have incurred losses from operations for several years or fail to comply with commitments. Take actions to prevent and effectively settle disputes concerning foreign investment.
- Strengthen state agencies in charge of managing foreign investment in a well-arranged, effective and efficient manner, and establish a contact point of ministries and local governments, meeting interdisciplinary/inter-region management requirements nationwide and in local regions. Improve assignment, decentralization and cooperation between ministries and local governments in association with inspection tasks.
- Attach a special importance to improving capacity and ethical standards of officials working at ministries and local governments, and performing state management of foreign investment in conformity with requirements and duties regarding foreign investment management.
- Establish and improve a consistent national investment database connected with other fields such as labour, land, taxation, customs, credit and foreign exchange, etc., and local governments. Improve quality of statistical works, ensuring timely, sufficient and accurate statistical reports in conformity with international practices.
- Closely cooperate with business associations and international organizations to improve quality and efficiency in selecting and raising foreign-invested enterprises; periodically select and praise foreign-invested enterprises with excellent performance.
- Establish and develop Communist Party units in foreign-invested enterprises with a due consideration of specific factors; provide instructions and guidelines for organizational structure, methods and contents of activities, etc. for Communist Party units in foreign-invested enterprises. Strengthen the association of Communist Party units and members with enterprises or their owners through mutual interests and development objectives.
- Strengthen the leading role of executive committees of the Party hierarchy at all levels in developing the Communist Party activities in foreign investment sectors; select and assign qualified officials who possess excellent political credentials to manage foreign investment and regularly inspect their performance.
- Develop and improve efficiency in operations of Trade Union units in foreign-invested enterprises, and promote their role in representing and protecting legitimate rights and interests of Party members and workers; establish harmonious, stable and advanced relationship as well as strengthen dialogues between enterprises and workers. All enterprises that employ 25 workers or more are expected to establish Trade Union units.
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Mọi chi tiết xin liên hệ: ĐT:(028) 3930 3279DĐ:0906 22 99 66
1. The Party committee of the National Assembly, and the Party civil affairs committee of the Government shall review, amend and improve the law on foreign investment cooperation and other relevant laws. Intensify the supervision of compliance with laws and policies for foreign investment cooperation by the National Assembly, the Standing Committee of the National Assembly, Ethnic Minorities Council, commissions, Delegations and members of the National Assembly.
2. The Party civil affairs committee of the Government shall play the leading role in formulating and organizing the implementation of foreign investment cooperation strategies for the 2021 – 2030 period, reviewing and improving relevant plans; formulating and organizing the implementation of action programs for implementation of this Resolution.
3. Provincial, town or city committees of the Party, the party committees in organizations, and Party units affiliated to central governments shall organize studying and formulating plans for implementation of this Resolution subject to the facts of industries, local governments, and regulatory authorities; include relevant objectives of this Resolution to their annual plans; regularly inspect and evaluate the implementation of this Resolution.
4. The Central Propaganda Commission shall play the leading role and cooperate with the Party civil affairs committee of the Government to provide instructions and disseminate information relating to this Resolution and implementation results thereof.
5. The Central Economic Committee shall play the leading role and cooperate with relevant agencies to regularly monitor, supervise, inspect and expedite the implementation of this Resolution; organize periodical preliminary and final reviews and report on the implementation of this Resolution to the Politburo and Secretariat./.