Political stability and the Vietnamese people are the two main reasons drawing foreign investors, especially multinationals to the country.

Prime Minister Pham Minh Chinh at the session. Source: VGP

Prime Minister Pham Minh Chinh made the view during a National Assembly discussion session held today [November 12].

“A stable political environment would persuade foreign investors to commit long-term in Vietnam, which is particularly important for those planning large-scale investment projects,” Chinh said.

The second factor, Chinh said, comes from the Vietnamese people. “In addition to being hard-working and supportive to each other, Vietnamese people are known for their creativity and flexibility,” Chinh continued.

In this regard, Chinh said the international community welcomed Vietnam’s approach of putting the people at the center of its Covid-19 response.

“It is for the benefits of the people that Vietnam would not sacrifice social equality,  social progress, and environment for pure economic growth,” he stressed.

While Vietnam has identified domestic resources as the key factor for growth, Chinh noted the foreign direct investment (FDI) would help create breakthroughs for the country to move forward, especially in terms of capital, technology, corporate governance, and human resources training.

Vietnam attracted over US$23.7 billion in FDI commitments in the first 10 months of 2021, up 1.1% year-on-year, including 1,375 fresh projects with registered capital of over $13 billion.

Meanwhile, the disbursed FDI amount was estimated at $15.15 billion during the period, down 4.1% year-on-year. Out of 97 countries and territories having investment projects in Vietnam, Singapore led the pack with $6.77 billion, followed by South Korea ($4.15 billion) and Japan ($3.4 billion).

Covid-19 response fund under consideration

As the Covid-19 pandemic has wreaked havoc on the local economy for most of the year, Chinh stressed the priority for Vietnam to soon issue a comprehensive economic recovery plan during the last two months of 2021.

“The first priority in such a plan should be to enhance the public health capabilities, including preventive healthcare and medical facilities at grassroots levels,” Chinh said.

Chinh also mentioned the possibility of setting up a Covid-19 response fund and a social welfare fund with more streamlined administrative procedures compared to current social funds.

The prime minister pointed out the necessity to focus on the people in any social relief package, saying the people are the most valuable resources for any country.

Meanwhile, Chinh noted small and medium enterprises (SMEs), accounting for over 90% of the total number of enterprises in Vietnam, are still struggling with the Covid-19 impacts.

Chinh requested Government agencies to draft more support policies for SMEs, but at the same time acknowledged the difficulties in balancing between economic growth and efforts to control inflation and stabilizing macro-economic conditions.

“Another solution for the economy is non-financial support packages, which are administrative reform and solutions to create a favorable platform for businesses and people to recover,” he concluded.