It’s time Viet Nam shift its attention to quality and sustainable development and eye industry 4.0 technologies to attract foreign direct investment (FDI), experts said at an online dialogue on FDI promotion strategies organised on Tuesday in Ha Noi.

Three decades since the Law on Foreign Investment was issued in December 1987, FDI has become an important part of the Vietnamese economy, although it has also brought with it problems such as environment pollution, outdated technologies, transfer pricing and below-expectation technology transfer.

During the event held by nhadautu.vn, Dang Xuan Quang, deputy director of the Viet Nam Foreign Investment Agency, said the country needs to review the policies of attracting FDI towards ensuring economic, social and environmental sustainability.

In particular, industry 4.0 should also be taken into account to attract FDI, Quang said.

“It is incorrect to say developing countries cannot approach industry 4.0. We still can participate in the fourth industrial revolution if we follow the right path and find the right niche,” Quang said.

Quang said selecting appropriate FDI would help Viet Nam engage deeper in industry 4.0.

Nguyen Mai, chairman of the Viet Nam Association of Foreign Invested Enterprises, said industry 4.0 would have significant impact on every rule, every economy and every industry, adding that new technologies would lead to changes in power, cause security concerns and have an impact on the gap between the rich and the poor.

Viet Nam should focus on attracting FDI in hi-technology sectors that generate high added value, such as information technology, electronics, Internet of Things and artificial intelligence, as well as virtual reality, augmented reality, cloud computing and big data, along with automation, new materials, education, R&D and healthcare, he said.

“It is critical to say no to polluting projects,” Mai stressed.

According to Nguyen Van Phuc, former chairman of the National Assembly’s Economic Committee, comprehensive evaluation should be undertaken on FDI attraction. “It’s time Viet Nam not longer remains lax while attracting FDI, but is selective, to ensure capital flows according to the country’s targets.”

Phan Huu Thang, former director of the Viet Nam Foreign Investment Agency, said policies should highlight responsibilities of FDI investors towards Viet Nam, especially in technology transfer and promoting Vietnamese firms to become suppliers of foreign firms and engage deeply in the global value chain.

Viet Nam also needs to improve its legal framework, especially in competition and ownership, Vo Tri Thanh, former deputy director of the Central Institute for Economic Management, said.

As of September 20, there were 24,200 existing FDI projects nationwide, with total registered capital of US$310 billion, 54 per cent of which was disbursed, so far.

In 2016, FDI sector contributed 50 per cent to Viet Nam’s industrial production and 18.6 per cent to the State budget collection. – VNS