THE PRIME MINISTER
SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom - Happiness
No. 15/2007/CT-TTg
Hanoi, June 22, 2007
DIRECTIVE
ON A NUMBER OF MAJOR SOLUTIONS TO PROMOTING FOREIGN INVESTMENT INTO VIETNAM
In recent years, thanks to the coordinated application of solutions under the Governments Resolution No. 09/2001/NQ-CP on enhancing the attraction and raising the efficiency of the use of foreign investment capital in the 2001 -2005 period, and the Prime Ministers Directives No. 19/2001/CT-TTg of August 28, 2001, and No. 13/2005/CT-TTg of April 8, 2005, on a number of solutions to create new changes in the attraction of foreign investment into Vietnam, many difficulties and obstacles have been tackled while the countrys investment environment has been constantly improved and become more attractive. As a result, foreign investment activities have overcome the period of depression of the 1997 regional financial crisis, have been incrementally recovered and quickly increased since 2004. Along with the foreign direct investment flow, foreign indirect investment has also seen a remarkable increase, particularly after the Investment Law, the Enterprise Law and their guiding documents took effect. Yet, the results of foreign investment attraction remain incommensurate with the big potential and requirements of capital mobilization to ensure quick and sustainable economic development. The progress and quality of some investment projects remain low and the amount of realized investment capital remains small compared to the registration, failing to boost the transfer of source and advanced technologies into the country.
The guideline on enhancing the attraction and raising the efficiency of the use of foreign direct investment (FDI) capital is manifested in various Party and State documents and was reiterated at the Xth National Party Congress: To enhance the attraction of foreign investment so that it will account for one third of the societys total development investment in five years (2006-2010). To expand domains, geographical areas and forms of FDI attraction, focusing on highly potential markets and the worlds leading economic groups, creating vigorous changes in quantity, quality and efficiency of FDI.
Beginning its 2006-2010 socio-economic development plan, though facing not a few challenges, Vietnam has new and big opportunities and advantages for the attraction of foreign investment:
First, Vietnams economy continues to grow at a high, stable and sustainable rate. Particularly in 2006, its GDP increased over 8.17% and export turnover reached nearly USD 40 billion; the investment environment was constantly improved, reincreasing the FDI flow from 2004 and giving rise to a new wave of investment into the country, further creating an impetus for a high growth rate in the years to come.
Second, that Vietnam officially became a member of the WTO, successfully organized the 14th APEC Summit and was granted the status of permanent normal trade relations (PNTR) by the US parliament as well as successful bilateral and multilateral working trips of its high-ranking state leaders have helped raise its prestige in the international arena.
Third, the countrys market economy institutions have been increasingly formulated and perfected. Particularly, the system of laws and policies related to the investment and business environment has seen important improvements, creating an equal, more transparent and favorable legal environment for domestic and foreign investors to do business fruitfully in Vietnam.
Fourth, Vietnam has a stable political situation and maintains social order and safety; is a developing potential market with a population of over 80 million, which will rise to 100 million in the near future. It is also a favorable commercial gateway to the markets of many ASEAN member countries. Meanwhile, the worlds economic environment continues its positive development trend. Big world economic centers have overcome depression and moved into a period of stabilization or continue developing vigorously and all strongly promote offshore investment activities.
These factors are important for the creation of new opportunities and advantages to boost the attraction of investment into Vietnam. However, to make full use of opportunities, efforts should be concentrated on overcoming investment-related limitations in the enforcement of laws and policies, the quality of infrastructure and human resources, the promotion of investment and administrative procedures, and handling corruption and negative practices.
I. MAJOR SOLUTIONS
In order to take advantage of new opportunities and increase foreign investment in the spirit of the Resolution of the Xth National Party Congress, the Prime Minister requests ministries, branches and provincial-level Peoples Committees to urgently implement the following major solutions and specific tasks:
1. Planning work
a/ To speed up the formulation and approval of required plannings; to review for regular supplementation or adjustment of inappropriate plannings so as to facilitate investors identification and formulation of projects.
b/ To firmly grasp and consistently implement the Investment Laws new provisions on planning, ensuring that branch, sector and product-based plannings conform with international commitments.
c/ To finalize and publicize land use plannings to accelerate the process of ground clearance for investment projects.
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