Incentives should be applied for effective FDI firms: Deputy PM

Preferential policies should be applied selectively, targeting FDI businesses with effective operation rather than the scale of investment, Deputy Prime Minister Vuong Dinh Hue said at a working session with the Ministry of Finance in Hanoi on February 28.

incentives should be applied for effective fdi firms: deputy pm hinh 0
Deputy Prime Minister Vuong Dinh Hue (standing) speaks at the working session with the Ministry of Finance (Photo: VNA). 

He said it is important to both attract investment and ensure revenues for the State budget, stressing that the goal in the time ahead is to promote FDI in an oriented and selective way. 

Towards this goal, the Deputy PM said it is necessary to develop a mechanism to encourage FDI firms to increase their capital and reduce loans as well as build a national information data system to share information on registration, investment expansion, revenues, profits and production costs of FDI firms.

The building of a specialised system of tax inspection is also needed to handle price transfer more effectively, he added.

He suggested calling for investment according to sectors and fields and encouraging connectivity between domestic and foreign enterprises.

Deputy Minister of Finance Huynh Quang Hai reported that Vietnam is now home to 21,400 FDI firms, making up about 3 percent of the total businesses in the country.

In 2017, the FDI sector’s revenues increased by 28 percent compared to 2016. 

The sector accounted for over 70 percent of the country’s export-import turnover and 15 percent of the State budget revenues. 

However, the attraction of foreign investment still has shortcomings, with the flow of FDI mainly focusing on labour-intensive sectors and areas with favourable natural and social conditions.

He noted that more than 50 percent of FDI businesses have reported losses in the past three years, making the price transfer more complicated.

Meanwhile, the FDI sector’s contribution to the State budget is growing at a slower pace than the growth rates in pre-tax and post-tax profits (7 percent compared to 19.2 percent and 22 percent). The Finance Ministry attributed this to the various tax incentives granted to foreign investors and big projects in prioritised industries and fields. The FDI sector currently enjoys more incentives than other economic sectors.

VNA

Other News

SBV raises short-term capital lending cap to 40%

SBV raises short-term capital lending cap to 40%

The new circular will help credit institutions have more room to provide capital to businesses and investment projects to support high economic growth in the next few years, while increasing flexibility in the SBV’s monetary policy management.

Business confidence in Vietnam rebounds strongly: UOB

Business confidence in Vietnam rebounds strongly: UOB

The study found that 85% of Vietnamese enterprises reported positive business sentiment, a sharp increase from 48% in 2025, when business confidence was weighed down by uncertainties surrounding US tariff policies and related trade developments.

Bac Ninh seeks high-quality foreign investment for sustainable growth

Bac Ninh seeks high-quality foreign investment for sustainable growth

According to Vice Chairman of the provincial People’s Committee Pham Van Thinh, the province aims to maintain stable and sustainable growth, improve the competitiveness of both the economy and local businesses, and make better use of free trade agreements (FTAs) to expand and diversify export markets.

Green building trend flourishes in Ho Chi Minh City's real estate landscape

Green building trend flourishes in Ho Chi Minh City's real estate landscape

The International Finance Corporation (IFC) highlighted the city's dominance in green-certified building floor space in Vietnam, reflecting the rapid expansion of the green building market with 780 completed green buildings encompassing over 18.69 million sq.m by 2025, predominantly certified by EDGE and LEED.

UK supports Vietnam in wind power and green finance development

UK supports Vietnam in wind power and green finance development

The United Kingdom officially announced two new climate cooperation initiatives to support Vietnam in its energy transition and green growth journey. These programs focus on offshore wind power development and the creation of a sustainable green financial ecosystem.

Ample room remains for Vietnam–India logistics cooperation

Ample room remains for Vietnam–India logistics cooperation

The GTTCI expert noted that alongside logistics and integrated warehousing, e-commerce is expected to be a particularly high-growth sector in the coming years. He described it as a multi-billion-dollar market with significant untapped opportunities for cooperation between Vietnam and India.

Exports gain momentum from high-tech growth drivers

Exports gain momentum from high-tech growth drivers

According to the Ministry of Industry and Trade, Vietnam’s exports reached 215.66 billion USD in the first five months of 2026, up 19.5% year-on-year. Twenty-six export items generated more than 1 billion USD in revenue each, including seven with turnover exceeding 10 billion USD.

Vietnam–China crossings see spike in ASEAN fresh produce

Vietnam–China crossings see spike in ASEAN fresh produce

Since the start of the summer harvest season, China's two major border gates with Vietnam, Youyi Guan in Pingxiang and Beilun 2 Bridge in Dongxing, have entered their peak period for handling imports of fresh agricultural and seafood products from member states of the Association of Southeast Asian Nations (ASEAN).

Cargo handling operations at Berths 3 and 4 of the Hai Phong International Gateway Port. (Photo: VNA)

AI reshapes logistics, raising bar for workforce skills

According to the Vietnam Logistics Business Association (VLA), the logistics sector will require around 2.2 million workers by 2030, including 1.6 million employees for logistics service providers and nearly 600,000 personnel supporting logistics operations in manufacturing and trading enterprises.

Robust dispute resolution framework key to Vietnam's IFC ambitions

Robust dispute resolution framework key to Vietnam's IFC ambitions

The development strategy for VIFC-HCMC envisions a comprehensive financial ecosystem encompassing green finance, carbon credits, financial technology (fintech), blockchain technology, digital assets, digital banking and other innovative business models. These highly internationalised sectors involve complex cross-border transactions and sophisticated legal structures.