Vietnam is one of the most attractive destinations for foreign direct investment (FDI) in Southeast Asia, thanks to its stable political system, strategic location, abundant workforce, and favorable business environment. However, the country is not resting on its laurels. It is constantly improving its institutional framework to enhance its competitiveness and facilitate FDI inflows.
One of the key reforms that Vietnam has undertaken is the amendment of its Law on Investment, which came into effect on January 1, 2024. The new law aims to simplify the procedures for FDI registration and approval, expand the list of sectors that are open to foreign investors, and provide more incentives and guarantees for FDI projects. Some of the notable changes include:
Reducing the number of conditional business lines from 267 to 227 and clarifying the criteria and conditions for each line. Introducing a negative list approach, which means that foreign investors can invest in any sector that is not explicitly prohibited or restricted by the law.
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Allowing foreign investors to participate in public-private partnership (PPP) projects, which are expected to boost the development of infrastructure and public services in Vietnam.
Providing more protection for foreign investors against expropriation, nationalization, and discrimination, and ensuring fair and timely settlement of disputes. Offering more incentives for FDI projects in priority sectors, such as high-tech, innovation, research and development, renewable energy, education, health care, and environmental protection.
These reforms are expected to make Vietnam more attractive and competitive in the global FDI market, especially in the context of the COVID-19 pandemic and the US-China trade war, which have disrupted global supply chains and prompted many multinational corporations to diversify their investments.
According to the Ministry of Planning and Investment, Vietnam attracted $28.5 billion of FDI in 2020, ranking third in Southeast Asia after Singapore and Indonesia. The country also ranked second in the world in terms of FDI performance, according to the UNCTAD’s World Investment Report 2023.
Vietnam’s efforts to improve its institutional framework for FDI are commendable and should be emulated by other developing countries that aspire to attract more foreign investment and achieve sustainable development.
Vietnam has demonstrated that with a clear vision, strong commitment, and effective implementation, it is possible to overcome the challenges posed by the global economic downturn and leverage FDI as a catalyst for growth and innovation.
Vietnam has been making remarkable progress in enhancing its legal and regulatory environment for attracting foreign direct investment (FDI). The country has adopted several policies and measures to improve the quality and efficiency of FDI, such as simplifying administrative procedures, strengthening intellectual property rights protection, promoting linkages between domestic and foreign firms, and encouraging investment in high-tech and green sectors.
These efforts have paid off, as Vietnam has become one of the most attractive destinations for FDI in Southeast Asia and beyond. Vietnam’s success story offers valuable lessons for other developing countries that aspire to boost their economic growth and development through FDI.
According to the World Bank, Vietnam received $16 billions of FDI inflows in 2020, ranking fourth among developing countries in East Asia and the Pacific. FDI accounted for 19.6% of Vietnam’s gross fixed capital formation and 4.4% of its gross domestic product in 2020. Vietnam’s success story offers valuable lessons for other developing countries that aspire to boost their economic growth and development through FDI.
Iran Launches three satellites into Orbit
Iran has successfully launched three satellites into orbit, according to the country’s official news agency IRNA. The satellites, named Zafar-1, Zafar-2 and Pars-1, were carried by a Simorgh rocket from the Imam Khomeini Space Center in Semnan province on Monday.
The launch was part of Iran’s ambitious space program, which aims to develop indigenous capabilities for scientific and technological applications. Iran claims that the satellites are for peaceful purposes, such as remote sensing, telecommunications and environmental monitoring.
However, the launch has raised concerns among some of Iran’s adversaries, who accuse the country of using its space program as a cover for developing ballistic missiles. The United States, Israel and some European countries have condemned the launch as a violation of UN Security Council resolutions that call on Iran to refrain from any activity related to ballistic missiles capable of delivering nuclear weapons.
Iran has denied that its space program has any military dimension and has insisted that it has the right to pursue peaceful exploration of space as a sovereign nation. Iran has also criticized the sanctions imposed by the US and its allies on its space sector, which it says are unjust and hinder its scientific progress.
The launch of the three satellites marks a significant achievement for Iran, which has faced several setbacks in its previous attempts. In February 2020, Iran failed to put two satellites, Zafar-1 and Nahid-1, into orbit due to technical problems. In August 2019, a rocket exploded on the launch pad at the same space center, reportedly due to a faulty component.
According to the Iranian Space Agency (ISA), the satellites are designed for remote sensing, telecommunications and scientific research. Zafar-1 and Zafar-2 are equipped with high-resolution cameras that can capture images of the Earth’s surface with a resolution of 22.5 meters. Pars-1 is a microsatellite that can measure temperature, humidity and pressure in the atmosphere.
The ISA said the launch was part of Iran’s plan to develop its space capabilities and to use space technology for peaceful purposes. Iran is one of the few countries in the world that can independently launch satellites into orbit, along with the United States, Russia, China, India, Japan and Europe.
The launch also coincided with the anniversary of the 1979 Islamic Revolution, which overthrew the US-backed monarchy and established an Islamic republic. Iran’s President Hassan Rouhani congratulated the nation on the achievement and said it was a sign of Iran’s resilience and progress despite the sanctions and pressures imposed by its enemies.
The launch, however, drew criticism from some Western countries, who accused Iran of violating a UN Security Council resolution that calls on Iran not to undertake any activity related to ballistic missiles capable of delivering nuclear weapons. Iran has denied that its space program has any military dimension and said it has the right to pursue peaceful exploration of space.
Iran is one of the few countries in the world that has developed its own satellite launch capability, along with the US, Russia, China, India, Japan and some European countries. Iran launched its first satellite, Omid, in 2009, followed by Rasad in 2011, Navid in 2012 and Fajr in 2015.