Experiences of Vietnam in FDI Promotion: Some Lessons for Myanmar
CHAPTER 4 Experiences of Vietnam in FDI Promotion: Some Lessons for Myanmar Thanh Tri VO and Duong Anh NGUYEN This chapter should be cited as: Vo, T T and Nguyen, A D., 2012. “Experiences of Vietnam in FDI Promotion: Some Lessons for Myanmar.” In Economic Reforms in Myanmar: Pathways and Prospects, edited by Hank Lim and Yasuhiro Yamada, BRC Research Report No.10, Bangkok Research Center, IDE-JETRO, Bangkok, Thailand. Chapter 4 Experiences of Vietnam in FDI Promotion: Some Lessons for Myanmar Thanh Tri VO, Duong Anh NGUYEN ______________________________________________________________________ Abstract Since 1986, Vietnam has carried out various measures to attract foreign direct investment (FDI), in line with deepened integration into the regional and world economies. The legal framework for FDI entry into the country has improved since 1987, with the promulgation of and numerous amendments to the Foreign Investment Law, alongside other legal-economic reforms concerning trading rights, the tarification of non-tariff barriers, etc. These structural and procedural changes facilitated FDI inflows to Vietnam, though such inflows varied during different periods. There are, however, some concerns about the effectiveness of recent FDI inflows, particularly regarding the low ratio of implemented capital over registered capital, and the State’s limited ability to manage capital inflows. Vietnam also took some practical steps, and experienced a string of success, in various aspects of FDI promotion – such as the introduction of export processing zones and industrial zones, the supply of infrastructure facilities, the delegation of FDI management authority to local governments, and the dialogue mechanism with the Government of Japan to support FDI operations.
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