Đề tài về Thực trạng sụt giảm PDI vào Việt Nam và giải pháp Đề tài thuyết trình nhóm môn Tài chính Quốc tế NEU Kinh tế Quốc dân 9 điểm bài tập nhóm. Bài viết bao gồm: Định nghĩa về PDI, tầm quan trọng của PDI tại Việt Nam, nguyên nhân sâu xa và nguyên nhân trực tiếp gây sụt giảm PDI, các giải pháp dành cho chính phủ và doanh nghiệp.
I Overview Concept FDI (Foreign Direct Investment) is a phrase used to talk about a form of long-term investment by organizations and individuals in one country in another by building production and business facilities The purpose of this is to achieve sustainable benefits and take control of the property The characteristics of FDI inflows FDI is a form of feasibility and great economic efficiency, so the main purpose of FDI is to bring great profits to investors The income that the investor receives is of the nature of business collection, not profit Therefore, the profit from FDI is determined based on the business results of the invested enterprise A clear legal corridor and reasonable FDI attraction policies are one of the top criteria that investment recipient countries need to have in order to be more favorable in attracting investment and promoting economic development Depending on the regulations of each country, foreign investors need to contribute a proportion of capital in the charter capital or legal capital through which to determine the rights and obligations of each party Accordingly, the return and risk of investors will also correspond to this ratio Investors will be the ones who have the right to make their own investment decisions, to decide on their own production and business, and to be responsible for their own losses and profits At the same time, they are also free to choose the type of field and form of investment Most FDI investors will transfer with the superiority of technology and techniques, so that the invested countries will carry out projects in a simple way and improve working productivity The role of FDI in Vietnam The presence of FDI enterprises in the past three decades has contributed to "changing flesh" of the Vietnamese economy Direct impacts can point to such as: FDI enterprises help to supplement important capital sources for development investment The structure of investment capital in recent years has continued to shift in the direction of increasing the proportion of the private sector - domestic population and reducing the proportion of investment from the state sector The capital source brought by FDI enterprises contributes to GDP growth and state budget revenue FDI capital plays an important role in promoting Vietnam's economic growth The contribution of the FDI sector to the country's GDP increased from 9.3% in 1995 to 16.9% in 2008 and 19.6% in 2017 The proportion of state budget revenue from the FDI sector also increased significantly, from 1.8 billion USD in the period 1994-2000 to 23.7 billion USD in the period 2011-2015, accounting for nearly 14% of total state budget revenue In 2017 alone, the FDI sector contributed more than billion USD to the state budget, accounting for 17.1% of total state budget revenue FDI enterprises increase the proportion of Vietnam's exports Vietnam's impressive export achievements over the years have marked the bold impressions of FDI enterprises The proportion of this group's contribution to exports has increased sharply from less than 50% of the total turnover before 2003 to over 60% in 2012 and has continued to exceed 70% from 2015 onwards The spillover effects of exports from FDI enterprises to domestic enterprises are analyzed in depth in the research of Nguyen Bich Ngoc (2017) for the processing and manufacturing industry Research shows that large-scale FDI projects have created a strong impact on the export results of these industries in Vietnam The presence of FDI enterprises in the processing and manufacturing industry has created pressure, forcing domestic enterprises to innovate technology, improve production, increase export market research, and strengthen trade links commercial The overwhelming advantage of capital and technology of multinational corporations has created considerable pressure on export market share as well as the competitiveness of domestic enterprises In addition, from a macro perspective, the position of FDI enterprises is overwhelming in Vietnam's exports However, this situation also creates instability for exports, because production and exports of the FDI sector depend heavily on regional and global supply chains Foreign investment in Vietnam contributes to labor force productivity growth Theoretically, FDI inflows have a reciprocal relationship with the labor productivity of the receiving country, but it should also be noted that it will have a positive impact when the domestic business sector is capable enough learn new technologies, or be able to provide inputs for FDI enterprises In the opposite direction, labor productivity is also a factor affecting FDI attraction FDI capital has created a technology spillover effect, contributing to improving technology levels through technology transfer and management skills transfer to Vietnamese people, creating competitive pressure and innovation technology for domestic enterprises II Current status of FDI in Vietnam General information The current economy is developing under the strong influence of the trend of liberalization and globalization of economic and trade relations And foreign direct investment (FDI) is one of the main drivers for this process to expand In Vietnam, FDI plays an important role in promoting economic growth The government continuously offers preferential policies and business environment for FDI attraction FDI attraction was a bright spot of the Vietnam economic picture in 2019 As of December 20th, the actual FDI capital reached $20.38 billion, up 6.7% from 2018; 3,833 new projects were registered with $16.75 billion, equivalent to 93.2%, 1,381 projects adjusted their capital with $5.8 billion, up 18.1%; 9,842 instances of capital contribution and share purchase with $15.47 billion, up 56.4% compared to the same period in 2018, accounting for 40.7% of the total registered capital The total newly registered, adjusted, and contributed capital and share purchases by foreign investors reached $38.02 billion, up 17.2% compared to the same period in 2019 In 2022, the total registered FDI in Vietnam reached nearly 27.72 billion USD, the realized FDI capital reached a record 22.4 billion USD, up 13.5% over the same period in 2021 This is the amount of FDI capital highest performance in years (2017 - 2022) The economic sectors with the highest proportion of FDI in the country can be mentioned: The processing and manufacturing industry leads the way with a total investment capital of more than 16.8 billion USD, accounting for 60.6% of total investment capital registration in 2022; the real estate business ranked second with a total investment of more than 4.45 billion USD, accounting for 16.1% of total registered investment capital; followed by electricity production and distribution (with registered investment capital of 2.26 billion USD), professional science and technology activities with registered capital of nearly 1.29 billion USD; The rest are other industries Moreover, in 2022, Vietnam has risked a big amount of FDI capital There are many factors that help Vietnam attract FDI capitals and promote economic growth Reasons for the downward trend of FDI in Vietnam According to the Foreign Investment Department, Ministry of Planning and Investment, in the first quarter of 2023, Vietnam attracted new FDI reaching 5.45 billion USD, down 38.8% over the same period last year FDI done in Vietnam in the first three months of 2023 was estimated at $4.32 billion, down 2.2% over the same period last year To explain for this heavy drop of FDI capital, we divided the reason to main groups: Direct cause and Root Cause a) Direct cause Based on foreign context, Under the impact of many adverse developments in the international context such as the Russia-Ukraine military conflict, business confidence and investment of foreign investors declined, significantly affecting the recovery of the country Global FDI after the Covid-19 pandemic At the same time, it increased disruptions in production and trade, exacerbating inflation The trend of major economies to encourage and promote production and FDI inflows also contributes to reducing FDI inflows into Vietnam Specifically, the US has implemented policies to reduce income tax from 25% to 21%, reform investment licensing procedures, introduce more flexible standards to improve the competitiveness of some industries American industries (energy, automobiles, aluminum, steel, etc.) The European Union (EU) also promotes "strategic autonomy" in the economy by setting limits on capital investment abroad In Asia, Japan has spent $2.2 billion, including $2 billion to support Japanese businesses to bring their production networks back from China and $200 million to relocate their production networks out of China The country moves to a third country with a number of priority industries such as medical equipment, auto parts, and electronics In Southeast Asia, there is increasing competition to attract FDI among countries Indonesia issued new preferential policies to welcome foreign investors such as reducing corporate income tax to 20% by 2022 Thailand also promoted investment attraction in the medical equipment sector, giving priority to high-tech projects are entitled to 50% corporate income tax reduction for years and support for human resource development Based on domestic background, statistics show that in the first months of 2022, FDI investment increased dramatically with large-scale FDI projects such as Lego project, total registered capital of 1.32 billion USD This project accounted for 41% of the total newly registered capital in the first quarter of 2022 b) Root cause Issues related to business investment environment, ability to absorb and be ready to receive large capital inflows, including land, human resources, infrastructure, supporting industries… : Foreign manufacturing enterprises, when investing in industrial parks in Vietnam, are still afraid of legal procedures and businesses often face difficulties in obtaining environmental and fire protection permits, leading to waiting time Waiting for a long application, slows down the investment progress The duration of work visas of some countries in Vietnam is only about 15-20 days, which is not enough for investors to survey the local business investment environment Besides, the rapid increase in land tax in industrial zones in recent years also affects investment decisions of foreign investors In addition, although the quality of Vietnam's human resources has improved, it is still inferior to other countries in the ASEAN region The logistics system has not met the development needs, the costs are still quite high compared to the region The legal environment has been improved, but the implementation is still inconsistent and lacks transparency II Suggestions for FDI recovery For government The Vietnamese government should prioritize institutional reform in order to align with the country's economic and political situation Specifically, the government should review and adjust policies in a timely manner to keep pace with global economic fluctuations and changes in investment strategies around the world Additionally, to improve the business environment, authorities should make efforts to increase transparency and reduce administrative procedures, strengthen the legal framework, protect intellectual property rights, and ensure fairness in business practices Given that it requires a highly skilled workforce to meet the demands of FDI projects, the government should increase investment in education and vocational training To solve this problem, the government needs to step up investment in education and training, especially vocational education and training of highly qualified human resources The provision of quality training programs, meeting the needs of FDI enterprises, will help improve the professional qualifications, skills and capacities of Vietnamese workers Furthermore, diversifying investment portfolios is essential to attract new investment inflows The government should focus on promoting strong industries, such as information technology, innovation, renewable energy, agriculture and food, textiles, shipbuilding, healthcare, tourism, and financial services To ensure national security and development, authorities should implement stricter filters for selecting foreign investors that use advanced, environmentally-friendly, and sustainable technologies Additionally, it is recommended that the government coordinate with diplomatic agencies, business associations, consulting and law firms, banks, and investment funds to actively approach, negotiate, and attract investment into Vietnam By implementing these suggestions, the Vietnamese government can effectively recover FDI and promote economic growth Furthermore, the government also needs Adjust some management principles and investment decentralization Specifically, Strengthen the inspection, examination and supervision of foreign-invested projects that have been granted and adjusted investment certificates Resolutely suspending projects that have been granted or adjusted to adjust investment certificates that are not in accordance with planning, processes and procedures For enterprises Vietnamese enterprises that want to attract FDI need to be ready to meet the requirements of multinational corporations, specifically: Enterprises need to pay attention to meeting the requirements of transnational corporations in terms of time for negotiation, signing of agreements and implementation Vietnamese enterprises can improve infrastructure, reduce investment costs and simplify registration procedures Thereby contributing to creating a favorable and stable business environment to attract investors Foreign investment At the same time, businesses need to research and understand the target market This includes learning about market needs, cultural characteristics and consumer habits Thereby, improving competition with competitors in the market In addition, Vietnamese businesses should also strengthen communication, marketing and relations with foreign investors Through exhibitions, fairs, promotional events or on digital platforms, Vietnamese businesses can promote their products and services to foreign investors From those events, businesses can also seek cooperation opportunities and poll foreign investors Thereby, helping to strengthen partnerships and create new investment opportunities In order to bring the greatest benefit to the domestic economy, enterprises, especially those in industries that attract strong FDI, should strive to improve independently, instead of relying solely on priorities government incentives It is also important that other industries must continuously develop to create more added value for society and enhance the country's competitive advantage Therefore, corporate social goals should be considered as equal to economic objectives, since the potential negative effects of receiving FDI, such as environmental damage or capital use, should be considered ineffective, should be carefully evaluated From the business side, more developed areas such as Hanoi, Ho Chi Minh City, and Da Nang are attracting high-tech projects related to future technologies and modern services Enterprises seeking to engage in FDI in these areas should be prepared to meet the requirements of multinational corporations in terms of negotiation time, agreement signing, and implementation Vietnam is also highly appreciated by the foreign investor community and international organizations for its investment business environment New-generation free trade agreements such as CPTPP, EVFTA, and RCEP have come into effect, so the prospect of attracting FDI in Vietnam is very bright Investment from Japan, Korea, Singapore and Asia is still increasing, while investment from the US, Germany, France, UK and some other European countries in modern technology, future technology, education and training Creation, research and development with many large projects also increased All in all, we think that with such advantages, as long as the Vietnamese government and entrepreneurs take steps to develop in line with the current trend, know how to transform to adapt to the requirements of the new generation, FDI capital can be Investment in Vietnam promises not only to be restored but also to grow stronger than in recent years