Hanoi (VNS/VNA) - The Ministry of Planning and Investment (MPI) hasannounced plans to issue more specific criteria for special investmentincentives to better attract foreign direct investment (FDI).

The ministry is collecting opinions to finalise the draft of the PrimeMinister's decision on special investment incentives, said Deputy Minister ofPlanning and Investment Nguyen Thi Bich Ngoc.

Vietnam needs more specific regulations on special investment incentives,especially for sectors seeking investment under Vietnam's development plans,create more advantages when negotiating with foreign investors and competing toattract foreign investment, she said.

The decision also aims to institutionalise the provisions of the Investment Lawand Government Decree No 31/2021/ND-CP on issuing detailed regulations andguiding the implementation of a number of articles of the Investment Law.

Many experts have said Vietnam really needs to have new criteria of specialinvestment incentives, aiming at efficiency in investment activities,attracting quality investment and investment in technology, and also ensuringenvironmental protection.

At the same time, priority should be given to projects with advanced technology,high-tech, added value and connection to the global production and supplychains. That is a goal of Politburo Resolution No 50-NQ/TW on perfectinginstitutions and policies for FDI attraction and improving the quality andefficiency of foreign investment cooperation.

In addition, the regulations of this decision must be clear and detailed interms of the scale and duration of incentives, experts have said.

The special investment incentives need to apply to both new projects andprojects with new investment.

Besides special investment incentives and assistance, under Decree 31, projectscan now join investment incentives specified in the investment license,business license, certificate of investment incentives, investment certificateor investment registration certificate.

They can also receive incentives via a decision on investment guidelines or adecision on approval for investment guidelines.

The disbursement of FDI capital from early this year to May 20 was estimated at7.15 billion USD, up 6.7 percent over the same period in 2020, according to theMPI.

During the five-month period, total newly registered and supplemented FDIcapital was posted at nearly 14 billion USD, up 0.8 percent from thecorresponding period last year, including 8.83 billion USD, up 18.6 percent,from 613 newly-registered projects.

The manufacturing sector lured the most FDI capital with 6.14 billion USD inthe first five months.

Foreign investors poured capital into 56 provinces and cities across thecountry, with the largest amount sent to Long An province with total registeredcapital of 3.35 billion USD, accounting for 23.9 percent of total registeredcapital in the period. HCM City was the runner-up with 1.34 billion USD and CanTho came third with 1.32 billion USD in FDI capital.

Singapore was the largest foreign investor in Vietnam during the first fivemonths with a total investment capital of 5.26 billion USD, accounting for 37.6percent of total foreign investment capital. It was followed by Japan, theRepublic of Korea and China./.