Resolution No. 50-NQ/TW on foreign investments

On the 20th of August 2019, Nguyễn Phú Trọng, the General Secretary of the Central Committee of the Communist Party of Vietnam signed Resolution No. 50-NQ/TW on orientations to improve institutions and policies and to enhance the quality and efficiency of foreign investment by year 2030.

This Resolution highlights the significant role that foreign investments played in the development of the Vietnamese economy during the last 30 years, and it states that this foreign investors should be given even more incentives and more opportunities to cooperate with the Vietnamese. This legal text also underlines the fact the Vietnamese State respects and protects the rights and interests of foreign investors, and participates in ensuring harmony of interests between the State, investors and workers.

This Resolution aims at establishing mechanisms and policies so as to improve the quality, the competitiveness and the cooperation with foreign investors. This legal text also aims at restructuring the economy, protecting the environment, dealing with social issues, and improving the quality, efficiency and competitiveness of the economy, especially in fields related to foreign investments until year 2030. It also addresses Vietnam's economic position in the ASEAN community, and it sets the aim for Vietnam to reach the top four of the ASEAN countries before 2021 and reach the top three before 2030.

Those are the goals set by Resolution No. 50-NQ/TW:

• Increase the number of businesses using advanced technology harmless to the environment and modern management by 50% up to 2025 and by 100% percent up to 2030.
• Increase the localization ratio so as to reach 40% in 2030 compared to the current 20-25%.
• Increase the percentage of trained and qualified workers so as to reach 80% of the total Vietnamese workforce by 2030.
• It defines precise targets in terms of foreign investments, with investment expectations amounting from 20 to 50 billion USD every year throughout the 2021-2030 period.
• Foreign-invested projects involving advanced and environment-friendly technologies and high added value will be given a high degree of priority.
• Synchronize legal systems to deal with problems of foreign investors, and ensure equal treatment between foreign and domestic investors.
• A security evaluation mechanism will be applied to foreign-invested projects considered a potential risk to national security.
• Encourage technology and management methods transfer to Vietnamese firms as well as the use of local laborers.
• Establish strict penalties against projects that damage the environment and fail to use the land effectively.

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