Attracting large, dynamic foreign investment projects that spread in a new wave of investment

On May 24, 2023, Prime Minister Pham Minh Chinh signed and issued Directive No. 14/CT-TTg on a number of tasks and solutions to improve the efficiency of foreign investment in the new period.

Attracting large foreign investment projects with the potential to spread in the new wave of investment image 1 — Building a database system of Vietnamese enterprises that meet the standards to become suppliers for foreign-invested enterprises in a number of industries and fields. Illustrative photo

Building solutions to attract investment and support other than tax

In this Directive, the Prime Minister assigns specific tasks to ministries, branches and localities. In particular, the Prime Minister assigns the Ministry of Planning and Investment to report on the possibility of developing a Law on Venture Investment; Building a database system of Vietnamese enterprises that meet the standards of being suppliers for foreign-invested enterprises in a number of industries and fields.

Preside over and coordinate with the Ministry of Finance and relevant ministries and branches to develop solutions to attract investment and provide support other than taxes, not contrary to international regulations and commitments in the spirit of harmonizing the interests of all parties, encouraging existing investors as well as new investors, ensuring equal treatment among enterprises.

The Prime Minister assigned the Ministry of Labor, War Invalids and Social Affairs to study policies to encourage businesses to employ Vietnamese talents abroad.

Develop a coordination mechanism with large domestic and foreign corporations and investors to train according to orders; Urgently amend and supplement Decree No. 152/2020/ND-CP dated December 30, 2020, of the Government regulating foreign workers working in Vietnam and recruiting and managing Vietnamese workers working for foreign organizations and individuals in Vietnam according to simplified procedures to be completed in June 2023, in a spirit of openness, convenience, in accordance with international practices and the practical situation of Vietnam, ensuring to meet the requirements of state management, as well as the need to develop high-quality human resources for Vietnam in the coming time.

Building policies to encourage cooperation and technology transfer

The Prime Minister requested the Ministry of Science and Technology to submit to the Prime Minister in June 2023 amendments and supplements to Decision No. 18/2019/QD-TTg dated April 19, 2019 regulating the import of used machinery, equipment and technological lines in the direction of simplifying requirements and procedures for importing used production lines and equipment into Vietnam to serve the relocation activities, ensuring that imported machinery and technology are advanced and consistent with the investment attraction orientation; review requirements, procedures and processes to ensure that outdated technologies that consume a lot of energy and pose a potential risk of environmental pollution are not accepted. Research and develop policies to encourage cooperation and technology transfer to Vietnamese enterprises.

For the Ministry of Information and Communications, the Prime Minister requested that in the third quarter of 2023, research and propose a pilot policy framework and breakthrough solutions to attract the world's leading digital technology corporations (techfirms) to Vietnam.

Review, develop and propose to issue, within authority, mechanisms and policies on concentrated information technology parks to form concentrated information industrial parks that meet international standards; attract the world's leading technology corporations to invest, research and develop.

Develop or propose to issue incentive mechanisms for Vietnamese IT enterprises to research and develop core software and source technology. Continue to promote the development of telecommunications and IT infrastructure to facilitate the attraction of foreign investment: 5G network coverage, development of high-speed and ultra-high-speed broadband fiber optic Internet networks to industrial parks, Gigabit fiber optic infrastructure connecting localities and key economic regions of the country...

Building a roadmap for global minimum tax

The Prime Minister assigned the Ministry of Finance to review the inadequacies and inconsistencies of tax laws with regulations on tax incentives of specialized laws to propose, develop, submit to competent authorities or promulgate under its authority tax laws to ensure consistency with other relevant laws in the third quarter of 2023;

Review and complete current legal regulations and develop a roadmap for applying global minimum tax based on international experience and in accordance with the context and practical situation of Vietnam to be submitted to the 6th Session of the National Assembly in 2023;

In the third quarter of 2023, submit to the Government amendments to regulations on personal income tax incentives for foreign experts, overseas Vietnamese experts, and high-quality domestic human resources to expand the source of high-quality human resources in Vietnam.

Urgently resolve business problems due to implementation

For the People's Committees of provinces and centrally-run cities, the Prime Minister requested to proactively approach and grasp the difficulties and problems of existing investors to identify current difficulties and propose improvements to policies and laws. Urgently and thoroughly handle the difficulties of enterprises due to the implementation stage.

Fully and seriously implement the provisions of the law on investment, enterprises, land, housing, construction, taxes, etc. in the process of appraising and managing foreign investment projects (FIPs), avoiding domestic and international complaints and disputes.

Along with that, the organization carefully appraises and evaluates technology, standards, technical regulations, product quality, environment, investment rate, etc. for foreign investment projects in fields where investors show signs of taking advantage of Vietnamese origin to evade trade defense measures and tax evasion.

Every year, the Chairman of the People's Committee of provinces and centrally-run cities presides over at least 02 dialogues with the business community, especially FDI enterprises in the province or city, promptly grasps the difficulties and problems of enterprises and promptly handles problems within their authority.

The Prime Minister also requested the People's Committees of provinces and centrally run cities to proactively approach and discuss with large corporations about incentive packages and investment support mechanisms within the framework of high-level foreign affairs activities of the Party, State and Government leaders. Leaders of ministries, branches and localities proactively seek, select, approach, discuss, promote opportunities, and mobilize international corporations and investors to invest in Vietnam, or through channels that have influence on investment decision makers to attract investment in Vietnam.

Based on the lessons learned from countries around the world in developing incentive packages and investment support (cash grants, labor training, infrastructure development support, measures to respond to global minimum taxes, etc.), ministries, branches and People's Committees of provinces and centrally run cities proactively research and propose to competent authorities to consider adjusting and supplementing laws and policies to be more competitive in order to attract large investment projects with driving force and spillover in the new wave of investment.

Strengthening the grasp of international investment trends, investment shifting trends, supply chains; impacts on Vietnam to propose solutions to remove difficulties and obstacles arising; at the same time, advising on policies in line with initiatives and new legal frameworks to attract high-quality FDI capital flows in the new situation, especially in key areas with development potential such as digital technology, semiconductors, microchips, electronic hardware assembly and production, software production, etc.

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