DECISION

APPROVING THE STRATEGY FOR FOREIGN INVESTMENT COOPERATION FOR THE PERIOD OF 2021 - 2030

PRIME MINISTER

Pursuant to Law on Governmental Organization dated June 19, 2015; Law on amendments to Law on Government Organization and Law on Local Governmental Organization dated November 22, 2019;

Pursuant to Resolution No. 50-NQ/TW dated August 20, 2019 of the Politburo guiding development of regulations, policies, quality, and effectiveness of foreign investment cooperation until 2030;

Pursuant to the 10-year Socio-Economic Development Strategy of 2021 - 2030 approved at the 13^th National Communist Party Congress;

Pursuant to Resolution No. 58/NQ-CP dated April 27, 2019 of the Government promulgating the Government’s Action program implementing Resolution No. 50-NQ/TW dated August 20, 2019;

At request of Minister of Planning and Investment.

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Article 1. Approving the Strategy for foreign investment cooperation in 2021 - 2030 as follows:

I. PRINCIPLES

1. Thoroughly publicize policies under Resolution No. 50-NQ/TW dated August 20, 2019 of the Politburo guiding development of regulations, policies, quality, and effectiveness of foreign investment cooperation until 2030.

2. Conform to the 5-year socio-economic development plan of 2021-2025, Economy restructuring plan of 2021-2025, and 10-year Strategy for socio-economic development of 2021-2030.

3. Integrate foreign investment attraction with development of independent and autonomous economy on the basis of practical and effective international integration.

4. Concentrate on attracting foreign investment with proper goals; select regions, markets, and partners to promote cooperation in development depending on international and regional scene; reposition investment capital, reduce dependence on risky markets; prioritize connecting to global manufacturing and supply chains; attract green investment, high technology, auxiliary technology, and advanced management, administration methods.

5. Utilize and improve competitive edge, conform to development trend, approach international advance standards and adhere to international commitment, ensure consistency, publicity, openness, and competitiveness.

6. Promote foreign investment cooperation together with socio-economic development, renovate growth model, restructure the economy, and utilize internal resources; closely connect and improve national competitiveness, competitiveness of each sector and enterprise; improve connection between regions and areas.

7. Develop “Cooperation in development” mindset, enhance connection for domestic production of production chains of multinational corporations in order to improve Vietnam’s position in production chains; improve the percentage of import substitution and added value of domestic enterprises, organizations, and individual; highlight responsibilities to society and environmental protection in order to improve foreign investment cooperation effectiveness.

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II. OBJECTIVES

1. General objectives

a) Attract foreign investment projects that utilize advanced technology, new technology, high technology of the fourth Industrial Revolution, modern administration, yield high added value, and connect global production and supply, demand chains;

b) Expand market, utilize capital, technology, and knowledge regarding management and culture of enterprises in areas with foreign investment capital; improve competitiveness of the economy, enterprises, and domestic products; promote industries, agriculture and service sectors in Vietnam, establish and enhance the role of Vietnamese enterprises in international communities;

c) Improve comprehensive effectiveness in attracting and using foreign investment capital, increasing capital contribution percentage of foreign investment in socio-economic development to match benefits and support provided;

d) Build and develop innovation centers, financial centers of regional and international scale to create socio-economic development drive.

2. Specific objectives

a) Complete specific objectives under Resolution No. 50-NQ/TW dated August 20, 2019 of the Politburo;

b) Increase the percentage of investment capital registered by countries and territories in total foreign investment capital of the whole country to more than 70% in 2021-2025 and 75% in 2026-2030, including: (i) Asia: Korea, Japan, Singapore, China, Taiwan (China), Malaysia, Thailand, India, Indonesia, Philippines; (ii) Europe: France, Germany, Italia, Spain, Russian Federation, UK; and (iii) America: United States of America;

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d) By 2030, Vietnam is listed among the top 3 ASEAN leading countries and top 60 worldwide leading countries in business environment category by World Bank.

III. SOLUTIONS FOR IMPROVING EFFECTIVENESS OF FOREIGN INVESTMENT COOPERATION

1. Effectively implement promulgated solutions

a) Resolution No. 50-NQ/TW dated August 20, 2019 of the Politburo;

b) Resolution No. 23-NQ/TW dated March 22, 2018 of the Politburo;

c) Resolution No. 10-NQ/TW dated June 3, 2017 of the 12^th Central Executive Committee;

d) Resolution No. 58/NQ-CP dated April 27, 2019 of the Government;

dd) Decision No. 1851/QD-TTg dated December 27, 2018 of the Prime Minister;

e) Decision No. 67/QD-TTg dated October 2, 2019 of the Prime Minister.

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Focus on improving competitiveness index of Vietnam based on assessment criteria of World Bank, World Intellectual Property Organization, and World Economic Forum; focus on low indices in terms of institutions, infrastructure, and commodity market. Subsequently, synchronously implement the following solutions:

a) Regarding institution

- Enhance the active, exhaustive, extensive, and practical participation of ministries, departments, and local governments in order to create fair, coherent, and transparent business investment environment. Ensure stable, consistent, synchronous, and developing investment environment and regulations in order to promptly adapt to new issues and deal with difficulties.

- Improve outlook capacity and transparency in developing legislative documents; develop procedures for monitoring, assessing conformity, impact, and quality of policies, effectiveness of policy implementation.

- Research and develop policies on flexibly adopting business investment procedures for appropriate business lines in order to create competitiveness in attracting and using foreign investment capital.

- Closely monitor the promulgation of business conditions for conditional lines of business. Conduct research to reduce unnecessary, unreasonable lines of business and business conditions in a manner that guarantees adequacy and consistency in business freedom of investors as per the law.

- Develop regulations on prevention of investment disputes; propose solutions for resolving difficulties and disputes of investors, issue early warnings regarding potential disputes between the Government and foreign investors.

- Issue policies to create legal corridors for development and management of new investment methods formats and methods conforming to international practice.

- Closely monitor acquisition activities of foreign investors and foreign-invested enterprises in domestic enterprises, especially major enterprises, enterprises operating in key sectors; closely monitor investment projects that can potentially impact national security or public order.

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- Review and assess advanced institution solutions that have entered into pilot implementation or application and yielded positive results, implement institutions for application on a nationwide scale; assess preferential treatments that create inequality in terms of institutions among areas in order to narrow and soon eliminate institution inequality and inconsistency.

b) Regarding infrastructure

- Produce planning for infrastructure development following modernization direction with strategic mindset, long-term aim, together with region connection in order to create development drive.

- Develop policies on facilitating types of ownership, including foreign investment, invest in development and trade of infrastructures via multiple forms, prioritizing PPP model and research shared risk mechanism conforming to international practice.

- Promulgate the list of priority projects for investment in infrastructure development in order to develop high quality infrastructure system for traffic, telecommunication, information technology, electricity, water, logistics, etc. in order to reduce transport cost and input costs of enterprises and improve competitiveness of the economy.

c) Regarding the commodity market

- Diversify export market, utilize advantages brought by signed FTA, especially agreements such as the CPTPP, EVFTA, and RCEP.

- Review policies, tariff barrier and non-tariff barrier solutions, ensure integration commitment and benefits of domestic enterprises, and improve cooperative effectiveness with foreign investment sector.

- Form and ensure effective operation of markets serving commodity production, especially markets related to foreign investment such as finance, land, employment, technology, Etc.

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3. Develop science technology and innovation ecosystem

- Promote and improve awareness of governments regarding importance of innovation and business startup. Build and develop National innovation centers, connect to innovation centers of regions, provinces, and enterprises in order to develop innovation and startup ecosystem, assist enterprises in accessing technology innovation and startup.

- Extensively and effectively implement Resolution No. 50/NQ-CP dated April 17, 2020.

- Build and develop science technology and innovation ecosystems with flexible management regulations suitable for digital business environment in order to facilitate innovation and business startup, create platforms for attracting and developing advanced technology.

- Develop policies incentivizing cooperation, technology transfer, and administration on the basis of agreement and volunteer for Vietnamese enterprises. Improve standards and technical regulations on products, environmental protection, resources, and energy efficiency conforming to regional and international standards.

- Develop legal frameworks regarding establishing, protecting, and commercializing intellectual property in order to ensure rights and benefits of organizations, individuals engaging in science technology and startup activities.

4. Innovate and improve competitiveness in attracting foreign investment

- Develop reasonable policies for attracting foreign investment between regions and areas; ensure that the attraction and cooperation of foreign investment adheres to orientation, planning, development requirements, and objectives of improving Vietnam’s position in the global production chain.

- Investment incentive policies should be reviewed and based on output results such as added value, research, development, and transfer of technology for Vietnamese enterprises, assist Vietnamese enterprises in participating in supply chains.

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- Develop policies for economic zones, industrial parks, hi-tech zones, concentrated information technology zones, agricultural areas applying hi-tech and other similar models by clearly identifying development focus and advanced policies depending on characteristics of each model, ensure connection and consistency with other areas.

5. Develop technology assisting and promoting connection

- Assess current conditions, technology and market trend, develop strategy prioritizing development of specific fields in auxiliary technology from time to time in order to prioritize development and avoid spreading investment too thin.

- Develop policies incentivizing and awarding bonuses to increase connection between foreign investment and domestic investment, sectors prioritized for investment attraction; improve technology absorption capacity and move towards mastering technology; develop industrial clusters, value chains, improve domestic added value, competitiveness of products, and national standing in global supply chains.

- Develop legal environment for transferring technology on the basis of developing system of legal documents synchronously in implementation of policies assisting enterprises in investing in technology innovation; promote the formation and development of intermediary organizations, facilitate the development of science and technology market, encourage enterprises to transfer, apply, and innovate technology, promote commercialization of technology research and development results; form joint venture and connection between foreign investment enterprises and domestic research institutes and universities.

6. Utilize internal capacity and competitiveness in order to improve foreign investment effectiveness

a) Promote implementation of policies incentivizing labor productivity, and total factor productivity (TFP) in order to develop internal capacity and competitiveness of the economy, to be specific:

- Research and establish National Committee for productivity and develop Strategy for increasing national productivity until 2030 and vision to 2045.

- Promote research, application of science, technology, and startup. Emphasize the role and importance of startup as the groundbreaking stage of the strategy for improving national competitiveness.

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- Enhance international cooperation in training experts, improving capacity in order to assist enterprises in fulfilling digital transformation requirements.

b) Promote development of manufacturing business: identify sectors and products that give the competitive edge in order to develop appropriate policies; focus on improving labor productivity, competitiveness, technology level, and startup.

c) Research and build financial centers of regional scale

- Research international financial center models in the region in order to apply with flexibility and connect, promote economy development and ensure national security.

- Research and develop competitive, advanced institutions, regulations, and policies for financial centers by focusing on: (i) proper investment and business environment; (ii) attraction and development of high quality finance human resources; (iii) development of infrastructure and logistic system of international level; (iv) development of national financial regions in a transparent, healthy, and proper manner; (v) development of brand and reputation of international level.

d) Improve capacity of domestic enterprises

- Develop domestic enterprises into proper strength and capacity for international integration; assist startup businesses, small and medium enterprises in establishing joint venture, connecting with foreign investment, focus on hi-tech, new technology, advanced technology, key technology of the fourth industrial revolution, modern services, manufacturing technology, information technology, and financial services.

- Promote and assist domestic enterprises in establishing joint venture and connections via capital contribution, share purchase, contributed capital purchase of foreign-invested enterprises in sectors that utilize hi-tech, new technology, advanced technology and move towards owning and mastering technology.

- Direct and assist domestic enterprises in assessing, selecting, and accessing technology transferred from foreign-invested enterprises, ensure consistency, compatibility, and conformity to national technology development goals from time to time.

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dd) Improve human resource quality

- Develop employment institutions conforming to international practice and guarantee implementation of commitments under new-generation FTAs. Improve human resource quality in order to attract high quality foreign investment.

- Enhance training of specialty, skills, discipline, culture, and awareness for workforce, especially sectors prioritized for attracting foreign investment; conform to international standards and requirements for attracting and using foreign investment. Research and develop policies on cooperating with major corporations and investors in Vietnam and other countries in providing training “via order placement”.

- Encourage online training; recognize value of certificate of online training completion in order to develop the labor market.

- Encourage foreign-invested enterprises to train, improve skills, and level of Vietnamese employees so that Vietnamese employees can handle important positions in foreign-invested enterprises.

- Encourage hiring Vietnamese workers who have worked and/or resided overseas, especially in developed countries. Continue to expand the network of connection and research for promulgation of policies incentivizing enterprises to utilize overseas Vietnamese.

- Encourage global vocation education and training organizations to invest in Vietnam; promote classification of university education, college education, and vocational education and training; renovate functions, tasks, and organization of education and vocational administration system to satisfy development requirements of the labor market; promote the model “trường học trong doanh nghiệp” (education institution in enterprise).

- Invest and develop modern information system for labor market assisting enterprises in attracting, training, and employing workers.

7. Improve effectiveness of international economic integration and Vietnam’s standing in international field

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- Implement solutions for accompanying and assisting enterprises in integration and implementation of international economy integration commitment, promptly receive feedback of enterprises regarding policies and difficulties in integration with international economy and negotiation, implementation of FTAs.

- Protect benefits of Vietnam’s Government, enterprises and consumers in economic, commercial, and international investment disputes.

- Develop and implement safeguards in order to protect legal rights and benefits of domestic enterprises; research and utilize advantages of international regulations on intellectual property, including geographical indication, name of origin, label, author's rights, related rights, etc. in order to protect intellectual property of Vietnamese individuals and organizations overseas.

8. Modernize and diversify investment promotion operation

- Renovate, develop, and improve effectiveness of investment promotion operation. Enhance cooperation and connection between central governments, local governments, provinces, state authorities, industrial associations in investment promotion operation.

- Renovate investment promotion operation. Upon implementing investment promotion, integrate new investment cooperation criteria; continue to maintain traditional market and partners while expanding new markets and partners.

- Access and mobilize via different channels such as: influential individuals, investors, industrial associations, international organizations, top consulting companies, private investment funds to attract large corporations to bring quality projects to Vietnam.

- Invest in order to diversify and modernize investment promotion activities and methods.

- Negotiate, renovate, and expand methods of receiving feedback of investors; promptly and exhaustively resolve difficulties relating to projects in implementation.

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- Develop national, central, and local brand identities and images conforming to development planning and investment promotion strategies.

- Cooperate with major corporations in investing in developing investment “Ambassador” for Vietnam in order to take advantage of influence and popularity of reputable investors.

- Develop assessment criteria for investment promotion activities in central and local levels.

9. Improve state management effectiveness of foreign investment

- Promote examination, inspection, and supervision of issuance, revision, and revocation of foreign investment projects, promulgate regulations incentivizing investment, etc., promptly discover violations, signs of violations; review inconsistent implementation of policies among local governments.

- Foreign investment management of local governments must ensure socio-economic-environmental effectiveness, conform to planning, adhere to criteria for selecting, sorting projects, etc.; procedures for issuance, revision, revocation, and termination of foreign investment projects as per the law. Finalize investment procedures that are coherent but under control via legal instruments.

- Improve state management authorities regarding foreign investment in a concise, effective, form contact points in ministries, local governments, satisfy management requirements of local governments, disciplines, regions, and nation. Improve awareness and consistency among government levels, especially heads of these levels.

- Promote decentralization, authorization, assignment, and cooperation between ministries and local governments while enhancing inspection and supervision. Simplify and unify periodic reports of enterprises submitted to competent authorities.

- Thoroughly deal with projects causing environmental pollution, using land ineffectively, facing deficits for multiple years, failing to execute projects as per commitment. Prematurely and effectively prevent, resolve disputes relating to foreign investment.

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Article 2. Organizing implementation

1. Ministry of Planning and Investment:

a) Take charge and cooperate with relevant entities in developing Decision of the Prime Minister on action plan for implementing the Strategy for foreign investment cooperation of 2021-2030;

b) Consolidate the implementation of the Strategy, submit annual report to the Prime Minister; organize preliminary conclusion of implementation of the Strategy until 2025 and identify tasks, solutions for subsequent stages.

2. Ministries, ministerial agencies, Governmental agencies, the People’s Committees of provinces and central-affiliated cities:

a) Continue to implement: (i) Resolution No. 58/NQ-CP dated April 27, 2020 of the Government; (ii) Resolution No. 23-NQ/TW dated March 22, 2018 of the Politburo; (iii) Decision No. 67/QD-TTg dated October 2, 2019 of the Prime Minister; and adhere to applicable laws;

b) Integrate principles and objectives of the Strategy in planning, plans, and strategies for socio-economic development of ministries, departments, and local governments;

c) Implement preliminary and final conclusion of implementation of the Strategy within their fields in accordance with instructions of Ministry of Investment and Planning; submit reports to the Ministry of Investment and Planning on an annual basis for reporting to the Prime Minister.

Article 3. This Decision comes into effect from the day of signing.

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PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Pham Binh Minh