Investment

The business activities of Australian enterprises in Vietnam still face a range of difficulties, such as troublesome administrative procedures, an inadequate tax system, low efficiency in law enforcement, and rising costs. At the “Strengthening Australia’s direct investment in Vietnam in the context of Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP) integration” webinar on December 22, many said that Vietnam needs to comprehensively reform its public sector, regularly review domestic laws and regulations, and create a fair and transparent business environment for foreign investors.

Supporting industries in central Da Nang city are to receive much-needed support. Those prioritized for development include the processing of raw materials and the manufacturing of components and spare parts. There will also be preferential policies introduced for enterprises investing in the development of supporting industries.

Deputy Prime Minister Le Van Thanh has agreed to add three industrial parks on a total area of 1,000 ha in northern Hai Duong province to Vietnam’s industrial park planning for the 2021-2030 period.

Ho Chi Minh City has proposed a reduction of over VND5.9 trillion ($258 million) from the Official Development Assistance (ODA) fund provided by the central government in 2021 for four projects, given the low rate of disbursement, at just 33.8 per cent of the plan. The city also proposed supplementing the 2022 capital plan with over VND1.8 trillion ($82 million) from the fund for four other projects.

The Quang Tri Airport project will receive investment of nearly VND6 trillion ($262.83 million) in the form of public-private partnership (PPP) funding. The central province of Quang Tri expects the airport to contribute to the development of the local tourism sector once in operation, especially historical tourism, making it a spearhead economic sector.

According to the National Road Network Plan, the 90-km-long Bac Kan-Cao Bang Expressway in Vietnam’s northern mountainous region will be constructed after 2030, with total investment of VND14.1 trillion ($616 million). If related localities are able to mobilize resources, including ODA, the expressway, which plays an important role in promoting socio-economic development in northern and northern mountainous provinces, could be built earlier.