Tuesday, March 19, 2024 1:06:06 PM - Markets open
VN-INDEX 1,244.22 +0.66/+0.05%
HNX-INDEX 236.93 +0.25/+0.11%
UPCOM-INDEX 90.57 +0.25/+0.28%
UKFTA promotes quality FDI flow to VN
Vietnamnews - 9/14/2022 4:20:12 PM
 (0 ratings. You must sign in to rate.)
The UK – Việt Nam Free Trade Agreement (UKVFTA) was promoting the influx of quality foreign direct investment (FDI) into Việt Nam.
 
The country is seeing drastic efforts in boosting reforms to unlock the potential for investment cooperation coupled with significant changes in the Government’s FDI attraction orientations.
 
The trade deal opened huge potential for Việt Nam to attract investment from the UK in the sectors of the UK’s strength, such as green finance, renewable energy, hi-tech manufacturing, digital transformation, healthcare, education and climate change adaptation.
 
Those were prioritised sectors in attracting FDI of Việt Nam as the country was striving to build a digital economy and promote green growth.
 
The latest updates showed that the UK was the 15th largest investor out of 139 countries and territories pouring capital into Việt Nam, with total investment worth nearly US$4.2 billion as of August 20, accounting for around 1 per cent of the total FDI value into the country.
 
In August alone, the UK invested in 25 new projects, bringing the total number of projects with UK investment to 478.
 
The existing investment from the UK was mainly poured into the manufacturing and processing industry, real estate business and mining. With the UKVFTA, there was significant room for Việt Nam to attract investment from the UK in renewable energy and hi-tech manufacturing as well as digital transformation.
 
Việt Nam committed at the 2021 United National Climate Change Conference (COP26) to achieve net zero emissions by 2050. Under the national strategy for green growth by 2030, the Government set the goal of greening economic sectors through the conversion of growth models and promoting the circular economy model through the efficient use of energy and resources based on the application of science and technology and digital transformation.
 
The Southeast Asian country’s FDI attraction policies were also switching to attract quality FDI which helped integrate the indigenous firms of developing countries into worldwide supply chain networks.
 
Chris Milliken, vice president of the British Chamber of Commerce in Việt Nam, at a workshop in June, said that he highly appreciated Việt Nam’s commitment to bringing net emissions to zero by 2050.
 
To achieve this goal, Việt Nam was currently quite open to receiving technological solutions to develop its renewable energy foundation, he said, adding that this was the area that the UK had an advantage in, especially renewable energy and energy saving.
 
According to the Multilateral Trade Policy Department under the Ministry of Industry and Trade, the UKVFTA gave Việt Nam the opportunity to cooperate with the UK in a number of important fields including industry and energy.
 
The department pointed out that the UK was a country with strengths in pharmaceuticals, high-tech industries, and energy saving, adding that Vietnamese enterprises have great opportunities to enhance investment cooperation with the UK and promote technology transfer from the UK.
 
Taking advantage of the UKVFTA, Vietnamese businesses also had the chance to participate in the UK’s industrial and energy supply chain as well as export industrial products to the UK.
 
According to the department, to integrate with the UK’s supply chain network, Vietnamese enterprises must pay attention to technical requirements and food hygiene and safety standards of the UK to prepare carefully in terms of business plans and product development.
 
In addition, enterprises also needed to pay attention to regulations related to sustainable development such as labour and environment because the UK was very interested in these issues, the department said.
 
Under the UKVFTA, Việt Nam had committed to higher standards of treatment for UK service suppliers and investors than those currently applied for other foreign service providers and investors under its WTO commitments. Many of these commitments lowered market entrance requirements or enlarged the scope of activities for UK services suppliers and investors than before.
 
Accelerate reforms
 
Việt Nam’s drastic effort in improving the business environment in recent years made the country an attractive and safe investment destination in the context that multinational corporations were seeking to diversify and optimise their supply chains after the COVID-19 pandemic.
 
The UKVFTA not only provided a push for trade and investment cooperation but also acted as a catalyst to accelerate institutional reforms and improve the business climate in Việt Nam, economist Võ Trí Thành said.
 
The trade deal contributed significantly to creating a favourable business environment to attract quality FDI and establish supply chains, he added.
 
Viet Nam climbed 34 places to rank 70th in the World Bank’s Ease of Doing Business Rankings from 2007 to 2020.
 
In the race to attract quality FDI and take advantage of the UKVFTA and other trade deals in which Việt Nam was a member country, further efforts to improve the business climate, improve the FDI policies and legal framework were required, according to the Việt Nam Foreign Investment Agency.
 
In addition, it was necessary to actively enhance trade promotion activities in the UK to introduce the country and the people together with advantages and opportunities when investing in Việt Nam.
 
The UK investors should be encouraged to invest in sectors of their strengths, including pharmaceuticals, technologies, aviation and renewable energy, the agency said. — VNS
 
Read original article here
 
Newer News
15/03 Petrol prices decrease slightly in latest adjustment
15/03 HCM City urged to create breakthroughs in foreign investment attraction
15/03 Japan seeks to boost seafood processing collaboration with Việt Nam
15/03 Việt Nam's rice exports to Senegal remain low compared to demand
15/03 Northern power corp’s output up 12.02 per cent
15/03 Controlling shipping line surcharge increases for market stability
14/03 Đà Nẵng tapped to transform into international financial centre
14/03 Vietnamese economy making dynamic shift with robust growth: Hong Kong news site
14/03 Việt Nam's GDP reaches over $430 billion in 2023, fifth most in Southeast Asia
14/03 PM chairs meeting on monetary policies to remove obstacles, promote growth
Older News
13/09 Indices struggle on rising selling force
13/09 Economists petrol stabilisation fund to be scrapped
09/09 IMF optimistic about Việt Nam's economic growth
09/09 US DOC delays final verdict on Vietnamese steel for the 5th time
05/09 Vietnam must prepare for new wave of investments
04/09 Conference promotes cooperation in four southern Lao provinces
02/09 Tourism sector pushes digital transformation for future growth
30/08 Việt Nam’s economic recovery to accelerate remarkably in H2: Standard Chartered
27/08 DOC not yet issued final decision for trade remedies on hardwood plywood
25/08 Seafood companies face a difficult third quarter
 
Newsletter Signup
Top Stories
Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
VN-Index corrects, liquidity stays high
Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
Corporate bond market quiet in February
Losses in bank stocks weigh on market sentiment
Market Update
Last updated at 1:04:58 PM
VN-INDEX 1,244.22 +0.66/+0.05%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.