The Foreign Investment Agency says the government needs to create preferential tax and credit policies to boost Vietnam's overseas investment, which is expected to grow at a steady pace in coming years.
Many local companies are now on a stronger financial and technical footing and capable of investing abroad, the agency said in a report released Friday. Overseas investment will expand annually by around US$500 million, it predicted.
There should be policies to encourage them to invest in other countries in key sectors, including power and mining, to support the home economy and improve Vietnam's image abroad, the report says.
It calls for government support through low interest rate loans and credit guarantees for local investors. The agency also proposed a tax exemption scheme on repatriation of profits that have been taxed in foreign countries like Laos and Cambodia.
Vietnamese companies invested in 49 overseas projects last year with a combined capital of around $1.65 billion, bringing total investment so far to $6.68 billion. Of 418 overseas projects, 164 are in Laos, mostly in the industrial sector.