Foreign investment attraction requires new approach

Reasonable mechanisms and a stable investment environment are needed for Vietnam to attract investors from the region and around the world, Mr. Dao Quang Binh, Head of Market Development at TECHFEST CONNECT 2021 and General Director and General Secretary of Vietnam Economic Times and VnEconomy, said at the Investment Connection Conference, entitled “Promoting technology investment in the future to lead the way”, on December 14.

Stability in the investment environment plays a very important role in attracting capital in technology. According to Mr. Binh, Vietnam needs to continue to simplify procedures on business establishment, create a friendly investment environment, and avoid any differentiating between domestic and foreign investors. It is also necessary to build a system of healthy, clear, and supportive regulations for initial public offerings (IPOs) and divestment by investors.

Technology is developing strongly in Vietnam and this is also a major challenge for policymakers, but if the country does not adopt an open mindset it will be very difficult to create an effective legal framework and an attractive and favorable investment environment. “As technology, business models, and products have all changed, policies need to change as well,” Mr. Binh said.

Vietnam should also accelerate investments in smart cities, integrating a combination of new technologies, as this is considered a magnet in attracting FDI capital. Mr. Binh hopes that Vietnam really will become a promising destination for investors with pioneering technologies in the region and the world thanks to favorable support mechanisms and open legal corridors, especially for foreign investors.