Prime Minister highlights pioneer role of FDI firms in green growth

Prime Minister Pham Minh Chinh on March 19 chaired a meeting with FDI enterprises and the annual Vietnam Business Forum (VBF) in Hanoi.

Themed “FDI enterprises pioneer in implementing green growth strategies,” the meeting-conference was jointly held by the Vietnamese Ministry of Planning and Investment (MPI), the World Bank (WB), the International Finance Corporation (IFC) and the Vietnam Business Forum Alliance.

It brought together representatives from Vietnamese ministries, international organisations, embassies, foreign representative offices in Vietnam, business circle, and domestic and foreign economists.

In his remarks, PM Chinh hailed the support of international friends and contributions by FDI firms to Vietnam’s socioeconomic achievements over the past time.

Against the backdrop of a global FDI slowdown, Vietnam has remained a silver lining in this regard, attracting nearly 36.6 billion USD in FDI in 2023, up 32.1% year-on-year.

As of the end of February 2024, the country counted over 39,500 valid FDI projects, with a total registered capital of more than 473 billion USD, by investors from 145 countries and territories worldwide, the leader said.

Informing the participants about Vietnam’s development orientations, he stressed that to achieve the set targets, it requires people and businesses, including FDI enterprises, to further uphold their roles. 

The PM suggested FDI firms, along with Vietnam, take people as the centre, subject, resources, momentum and target of development, stressing economic growth should not be achieved at the expense of social progress and equality, and the environment.

Regarding green growth, the government leader noted that Vietnam has viewed it as a core element in economic restructuring and growth model reform towards higher productivity, quality, efficiency and competitiveness, and rapid, sustainable development. 

He elaborated on Vietnam’s net-zero commitments and its green growth strategies and plans, and called on foreign investors and partners to work together with Vietnam to achieve them.

FDI firms and foreign investors should lead in changing both mindset and actions, pursuing sustainable development, transferring technologies, and promoting development research, he suggested.

The PM also called on development partners to enhance cooperation, especially in high-quality personnel training, share experience with Vietnam, provide consultations, and intensify financial and technological support to the country.

In return, Vietnam will ensure legal, legitimate rights and interests of businesses, guarantee political stability, social order and safety and national independence, sovereignty and territorial integrity to help investors feel secured during operations; and ensure energy security towards green transition, he pledged.

At the same time, the country will implement the three breakthroughs of institution, law, mechanism, policy; infrastructure, including transport, digital, logistics and social infrastructure; and administrative reform and personnel training, the leader continued.

It will also work to raise businesses’ confidence in the Government and all-level administration; promote openness, transparency in tandem with the fight against negative phenomena and wastefulness; and step up support to enterprises in green, sustainable development, he said.

Minister of Planning and Investment Nguyen Chi Dung said the event demonstrates the strong determination of the Government, as well as the special role of the business community, especially FDI firms, in green growth.

Denzel Eades, Vice Chairman of the British Chamber of Commerce in Vietnam (BritCham), lauded Vietnam’s commitments to net zero emissions by 2050 and sustainable development, and the Government’s efforts in this regard, affirming that UK firms stand ready to significantly contribute to such important areas as energy, finance, pharmacy and consumer goods in the Southeast Asian nation.

He recommended that Vietnam quickly roll out the National Power Development Plan VIII, approved by the PM last year, with attention to be paid to the development of liquefied natural gas (LNG) power, and solar and wind energy, and implement the Just Energy Transition Partnership in line with the plan.

Joseph Uddo, Chairman of the American Chamber of Commerce in Hanoi (AmCham Hanoi) and President of AES Vietnam, said to regain momentum and develop the supply chain, Vietnam needs to carry out restructuring in state-owned enterprises, government management and management process for the private sector.

AmCham suggested that Vietnam further streamline administrative procedures in   issues relating to tax and investment licensing, and ensure stable electricity supply for production and business, he said./.