Ensuring FDI inflows into Vietnam become a powerful impetus for innovation

Streamlining investment procedures in economic zones
Delegate Nguyen Hoang Bao Tran (Binh Duong Province delegation) raised inquiries regarding administrative procedures for enterprises operating within industrial zones. According to the delegate, investors are seeking a more favorable "one-stop-shop" mechanism and faster processing of administrative tasks. "What solutions are in place to encourage both domestic and foreign investors to increase investment in industrial zones today?" the delegate questioned.
In response, Minister Nguyen Van Thang stated that the Government has issued Decree No. 35 (Decree No. 35/2022/ND-CP dated May 28, 2022, on the management of industrial and economic zones). Notably, the procedures for establishing industrial zones previously regulated under Decree No. 82/2018/ND-CP have been abolished nationwide to shorten investment preparation time and reduce the duration for approving investment policies.
Furthermore, an "on-site one-stop-shop" mechanism for administrative procedures has been implemented. Authority has been decentralized to the Management Boards of industrial and economic zones across various sectors, including investment, environment, construction, labor, and land. This decentralization has significantly contributed to the simplification of investment procedures within industrial zones.

Minister Nguyen Van Thang in the Q&A session

Additionally, Law No. 57, passed by the National Assembly on November 29, 2024, which amends several laws including the Law on Investment, the Law on Planning, and the Law on Public-Private Partnership Investment, will continue to streamline administrative procedures for both infrastructure and secondary projects within industrial and economic zones.
The authority to approve investment policies for industrial zone and export processing zone projects has also been delegated to provincial-level People's Committees. "This decentralization helps save time and costs, accelerates project progress, and increases socio-economic efficiency. It also fosters proactivity and responsibility at the local level in developing industrial zones tailored to practical needs," Minister Nguyen Van Thang emphasized.
He also noted that the aforementioned Law introduced breakthrough regulations regarding "special investment procedures." These procedures shift from pre-approval inspection to post-approval inspection to simplify processes and shorten project implementation timelines.
Special investment procedures will be applied to specific projects in fields such as innovation, the semiconductor industry, high-tech sectors, and high-tech products prioritized for development. These projects will follow a registration process at Management Boards, with Investment Registration Certificates expected to be issued within 15 days. Investors will be exempt from certain procedures related to construction, environmental protection, and fire prevention and fighting. This is projected to reduce the time required for investment licensing by approximately 260 days compared to current regulations.
Technology transfer in FDI enterprises
Delegate Pham Hung Thang (Ha Nam Province delegation) raised a question: "One of the standout advantages of FDI compared to other capital sources is that it comes with technology transfer, enhancing R&D and innovation capabilities. Could the Minister elaborate on the impact of FDI on improving science and technology in Vietnam, and the solutions to enhance the efficiency of technology transfer through FDI projects?"
Responding to the delegate, Minister Nguyen Van Thang stated that the policy for attracting FDI has always been tied to requirements for substantive technology transfer and the enhancement of domestic innovation capacity. Decision No.29, issued by the Prime Minister, offers special incentives for high-tech projects or those with significant technology transfer commitments. Implementing Resolution No. 57 of the Politburo, the Ministry of Finance is currently developing an institutional framework to establish specialized industrial parks focused on Artificial Intelligence (AI) and smart industrial zones. These aim to increase the technological content within the FDI sector and create a spillover effect for the domestic economy.
 

Members of parliament in the session

The Government has also approved a strategy for the development of the semiconductor industry and a human resource development program through 2030, with a target of training at least 50,000 personnel for the entire semiconductor value chain.
Vietnam has partnered with leading global technology entities - such as Siemens, Intel, Coherent, and Arizona State University (USA) - to establish research, incubation, and chip design centers within the country. Furthermore, the Government supports domestic enterprises in acquiring or merging with foreign companies that own source technologies. Universities, research institutes, and experts are being connected with FDI enterprises to gain experience and apply high-tech and digital solutions.
"The comprehensive suite of technological and human resource solutions ensures that FDI inflows into Vietnam truly become a powerful impetus for local innovation, empowering Vietnamese enterprises to rise within the value chain," Minister Nguyen Van Thang concluded.

Source: https://www.mof.gov.vn/tin-tuc-tai-chinh/tin-chinh-sach-tai-chinh/dam-bao-dong-von-fdi-vao-viet-nam-thuc-su-tro-thanh-cu-hich-manh-me-cho-doi-moi-sang-tao