Opportunities for Vietnamese businesses
Talking to Lao Dong Newspaper immediately after the Conference ended, Mr. Nguyen Van - Vice Chairman of Hanoi Association of Supporting Industry Enterprises (HANSIBA) said: "For the community of supporting industry enterprises, Resolution 10-NQ/TW is a particularly important orientation. We are very impressed with the viewpoint emphasized by General Secretary and President To Lam at the Conference, which is to attract foreign investment not to replace internal strength but to strengthen internal strength, improve the autonomy and competitiveness of the economy. This opens up great opportunities for Vietnamese supporting industry enterprises, including Hanoi enterprises, to participate more deeply in the value chain and global supply chain".
According to Mr. Van, although the Resolution focuses on attracting foreign business capital, Vietnamese businesses see many opportunities. “We highly appreciate the orientation of shifting from competition to attract investment with incentives to competition with institutional quality, human resource quality, innovation capacity and investment environment quality. These are decisive factors for Vietnam in general and Hanoi in particular to attract new generation FDI capital, with high technology content, high added value and strong spillover potential.
For Hanoi Capital, the orientations on developing high-quality human resources, science and technology, innovation and digital transformation mentioned at the Conference also open up many new opportunities for the supporting industry business community. We expect to have more mechanisms and policies to promote Vietnamese businesses to participate more deeply in the supply chain of multinational corporations, strengthen technology transfer, human resource training and develop domestic production capacity.
For domestic enterprises, which have been and will participate in the field of supporting industry production, high technology and new generation industry. Among them, there are many member enterprises of HANSIBA. There have been specific cooperation steps with FDI partners, typically right in the Southern Hanoi Supporting Industrial Park (Hanssip Hanoi), by N&G Corp Company, a member of N&G Vietnam Group, developing synchronous and modern infrastructure, according to ESG standards and 17 sustainable development criteria of the United Nations.
With the new Resolution, we have more conditions to develop in a specific way, in terms of financial resources, land, factories, high-quality human resources, and import and export tax incentives. From there, create specific efficiency, deeply participate in the global supply value chain, with FDI enterprises that have developed many large-scale factory complexes in this industrial park, contributing hundreds of millions of USD of initial investment capital to Hanoi capital" - Mr. Van shared.
Creating new development capabilities for the nation
At the Conference, Politburo Member, Standing Deputy Prime Minister Pham Gia Tuc said: "After nearly 40 years of renovation, the Party's policy of opening up and attracting foreign investment has achieved great achievements, of strategic significance for the country's development. Vietnam has become an attractive investment destination for the region, attracting nearly 550 billion USD of registered capital, with more than 46,000 valid projects, making an important contribution to promoting growth, industrialization, modernization, export development, job creation, improving Vietnam's governance capacity and position in the world economy. It can be affirmed that the Party's policy of attracting foreign investment in the past nearly four decades is completely correct and has achieved very important results.
However, with the new requirements, to achieve the goal of rapid and sustainable development, building an independent and self-reliant economy associated with deep international integration, Vietnam needs a new development mindset for the foreign-invested economy.
If for nearly forty years, the central task has been to open up to attract international resources, then in the new period, the central task is to effectively promote those resources to work with the country's internal resources to create new development capabilities for the nation" - the Standing Deputy Prime Minister emphasized.
With 6 major changes in development thinking of Resolution 10-NQ/TW, the targets set are very specific: By 2030, attract 200-300 billion USD of registered FDI capital, of which realized capital reaches 150-200 billion USD; Improve the quality of capital flows with 75% of new registered capital coming from developed economies with potential in technology, capital and modern management; The average localization rate in key industries reaches 40-50%. About 10,000 Vietnamese enterprises participate in the supply chain of foreign-invested enterprises; Upgrade the stock market to emerging markets before 2030, creating a stronger foundation to attract international indirect investment capital flows.
The goal by 2045 is for the foreign-invested economic sector to develop effectively and sustainably, closely linked to the state economy and private economy; Vietnam becomes a production, service, innovation and regional operation center for many multinational corporations, thereby enhancing Vietnam's position in the global value chain; the foreign-invested economic sector accounts for about 25% of total social investment capital and contributes about 30% of GDP.
Our supporting industry is very interested in the goal of about 10,000 Vietnamese enterprises participating in the supply chain of foreign-invested enterprises by 2030. What the supporting industry community expects now is not only opportunities from high-quality FDI capital flows but also specific support policies and a strong enough "launch pad" from the State so that domestic enterprises can improve their competitiveness and participate more deeply in the global supply chain.
More importantly, it is necessary to create conditions for Vietnamese supporting industries to be strong enough to become equal partners of FDI enterprises, instead of just waiting to be "pulled into the chain". To do so, domestic enterprises must be supported to improve their internal capacity, and policies need to aim to promote substantive linkages between the two business sectors," Mr. Nguyen Van expressed.
Talking to Lao Dong Newspaper, Assoc. Prof. Dr. Le Quoc Ly - former Deputy Director of the Ho Chi Minh National Academy of Politics analyzed that if the initial stage of the renovation focuses on opening up to attract external resources to overcome the situation of lack of capital, lack of technology and lack of management experience, then in the new development stage, the requirement is no longer to attract how much investment capital, but to transform how much value from that capital flow into the competitiveness of the Vietnamese economy.
That is the development mindset that focuses on growth quality, endogenous capacity, innovation and strategic autonomy. In the context of global competition increasingly based on technology, innovation and data, an economy that only relies on cheap labor or investment incentives will find it difficult to maintain long-term competitiveness. Therefore, the development of the FDI sector must aim to form endogenous capacity and increase the value of the Vietnamese economy" - Assoc. Prof. Dr. Le Quoc Ly said. VUONG TRAN
