FIA and EY Vietnam sign MOU on attracting FDI into Vietnam

Representatives from Foreign Investment Agency (FIA), Ministry of Planning and Investment (MPI) and Ernst & Young Vietnam Limited (EY Vietnam) signed a Memorandum of Understanding (MOU). The signing ceremony was held at the MPI Headquarter. The MOU is aimed to promote investment opportunities towards the investors including EY clients across the globe, paving the way for their new and/ or expanded investment in Vietnam.

Under the MOU, FIA will provide EY Vietnam with updated information on directions and policies to draw investment into Vietnam. The agency also assists investors introduced by EY Vietnam to conduct researches and implement business-investment procedures in accordance with the law; endorse, resolve or reflect the investors’ recommendations to the relevant authorities.

On the other hand, EY Vietnam will introduce and recommend potential investors who are EY clients globally to invest in Vietnam. EY may coordinate with FIA to organize seminars, conferences and round-table discussions for investors introduced by EY, depending on the scale and features of each event.

Given its professional experience and global network, EY Vietnam can understand the needs and concerns of its clients, especially those from Japan, South Korea, which have the largest FDI value realized in Vietnam. EY Capital Confidence Barometer’s survey conducted in early 2020 indicated that 74% of Japanese companies interviewed will likely to change the set-up of their supply chain after COVID-19. Therefore, this could be a good opportunity for Vietnamese government to attract investment arised from that trend.

Implementing the MOU, EY Vietnam will also keep FIA well informed of trading and investment trends regionally and globally; support FIA to conduct detailed and strategic researches in order to evaluate opportunities, effective investment models, solutions and best practices for Vietnam.

The MOU signed in the context that Vietnam has favorable conditions to engage international investors. As a result of the negative impacts triggered by COVID-19 and trade tensions among substantial countries and territories, multinational corporations are accelerating the restructuring of their global value chain while seeking to reduce the dependence on a single market.

“Vietnam will actively and selectively attract foreign investments, taking high-quality, efficiency, modern technology and environmental protection as the key benchmarks” said  Mr. Tran Quoc Phuong, Deputy Minister of Planning and Investment. "Vietnam also prioritizes advanced technology and green projects, with high value-added components, connecting with global production and supply chains”.

“With our profound insights and expertise on investment megatrends in combination with EY global network, EY Vietnam would be delighted to assist investors who are EY clients globally to make new investment or expand their investment in Vietnam”, Mr Tran Dinh Cuong, Country Managing Partner, EY Vietnam said. “We are committed to support multinational conglomerates and hi-tech firms to gain a thorough understanding of local business environment, incentives policies, promoted sectors and areas – whereby leading to an increment of both foreign direct and indirect investment”.

“Supporting industry from Japan and South Korea is one of the fields we would like to attract because the domestic assembling rate of the sector is quite low compared to some countries in the region”, Mr Do Nhat Hoang, General Director of FIA, MPI noted. “To create favorable conditions for businesses who want to invest or expand their footprint in Vietnam, we has established a task force aimed at solving every hurdle they are facing”.

By the end of 20 September 2020, Vietnam aggregately had 32,658 valid FDI projects with a total registered capital of USD381.5 billion. Aggregated implementation capital of these projects is estimated at USD225.8 billion, equivalent to 59.1% of the total legitimately registered investment capital, citing data from FIA.

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