In 2005 in particular, Vietnam's National Assembly adopted 14 laws-the highest number of laws to be adopted in a year up to now, including the General Investment Law and the Unified Enterprise Law-and has been debating 8 draft laws for approval in the coming session.

As a result, foreign investment flows to Vietnam have recovered, especially since 2004. Generally, over the past five years, Vietnam has attracted over USD 18 billion of newly-registered FDI and USD 13.6 billion of realized FDI which have contributed to increasing development investment capital, production capacity and export value of the economy. It is estimated that foreign-invested economic sector is contributing 14% to GDP, more than 20% of the total social investment capital and more than 1/3 of the total export turnover of the country (not including crude oil). Over the last five years, the sector has contributed about USD 1 billion/year to the state budget, directly generated about 800,000 jobs and indirectly about 2 million others.

There are reasons for increasing international investors and organisations trust in Vietnam: Vietnam is a stable and peaceful country; having sustained high economic growth and increased per capita income as well as rising domestic demands. The international community gives their confidence to Vietnam for her efforts and determination to integrate into the world economically. This confidence was shown at the 2004 Consultative Group meeting of international donors for Vietnam with the amount of committed ODA up to USD 3 billion.

Responding to a question of Vietnamese Investment Review's correspondent, Deputy Prime Minister Vu Khoan said: the Vietnamese Government advocates that besides opening the industrial sector to foreign investment, Vietnam would gradually open some service industries such as banking, telecommunications, insurance, health, education and transport according to the committed roadmap. Vietnam would take active measures to facilitate business expansion of FDI enterprises and help increase their business performance in Vietnam. The Government would clearly define the authority of central and local administration and clarify state administration accountability of ministries and agencies with regard to foreign investment; relaxing registration and licencing regime in accordance with the roadmap of implementing international commitments and agreements. The Government would continue to assist FDI enterprises in dealing with their difficulties in doing business. Previously, local authority could only licence investment projects valued up to USD 5 million. Today, the Ho Chi Minh City and Ha Noi are authorised to license projects of higher capital. The management boards of industrial zones are empowered to license projects valued up to USD 40 million. Some localities have even applied pilot electronic licence systems to speed up registration licensing.

In the newly drafted Investment Law, large investments with an investment capital of over USD 20 million (or VND 300 billion), accounting for 2% of new foreign enterprises, are subject to appraisal. To encourage investment through post registration measure will help streamline appraisal procedures. Disputes are settled according to international practices.

The Government will also formulate policies of preferential treatment for multinational corporations, primarily for those operating in manufacture, high technology, chemical industries and services, further attracting foreign investment through joint-ventures to produce export items of high added value, introducing more assistance measures in favour of export-oriented FDI enterprises. Besides, the Government also agrees to intensify and renovate investment promotion work directed at major locations, major partners and high-tech-intensive projects in important fields of the economy.