Investment Policy Review
Viet NameBook - 2008
Vietnam opened its economy to foreign investors in the late 1980s under the Doi Moi policy of renovation and economic reforms, and quickly managed to attract significant inflows of foreign direct investment (FDI). As a result, foreign investors have been a major force in the economic transformation of Vietnam during the past two decades and in its integration into the world economy. To exploit its potential fully, this review highlights a number of areas where Vietnam could focus its attention for further reforms, including ensuring that the economy has the skills it needs as it evolves, using foreign workers where necessary. Measures to separate the State's ownership and regulatory functions clearly are also proposed, together with a rationalization and simplification of fiscal incentives on corporate taxes. It also suggests certain FDI entry restrictions be lifted and the regulatory stance be changed from "steer and control" to "regulate, monitor and enforce". On the basis of an analysis of the electricity sector, it also proposes a number of measures to enable Vietnam attract FDI in power generation.--Publisher's description.