Vietnam has pulled in 8,590 foreign direct investment (FDI) projects totaling around US$83.1 billion over the past 20 years, said head of the Foreign Investment Department Phan Huu Thang.
Industry and construction sectors take the lead in FDI attraction, making up 66.8 per cent of the total FDI projects and 60.2 per cent of the capital value, respectively, followed by the services sector, 22.2 per cent and 34.4 per cent. The agro-forestry and fisheries sector kept 10.8 per cent of all the FDI projects, Thang said.
The Southeast Asian country has lured investors from 80 countries and territories worldwide with those from Asia being the largest, accounting for 68 per cent.
The runners-up were those from the European Union (EU), 16.2 per cent; the America, 11.8 per cent, the U.S. businesses held 3.6 per cent of the country’s total FDI.
South Korea topped the list of Vietnam’s foreign investors with 1,837 projects worth US$13.5 billion, followed by Singapore with 543 projects capitalized at US$10.7 billion, Taiwan with 1,788 projects valued at US$10.5 billion and Japan with 928 projects worth US$9 billion.
Ho Chi Minh City proved to be the most attractive destination for foreign investors in Vietnam, luring 2,610 operating projects capitalized US$16.55 billion, followed by Hanoi, Dong Nai, Binh Duong and Vung Tau.
Thang said that Vietnam has seen a sharp rise in FDI flow in the 1991-96 period before a considerable drop from 1997 resulted from bad effects of the regional financial crisis.
The FDI wave into the country has recovered again since 2000 and particularly rapidly increased over the past two years with US$10.2 billion in 2006 and US$20.3 billion in 2007.
The Ministry of Planning and Investment (MPI) recently forecast that Vietnam will pull in between US$17 billion and US$20 billion in FDI each year on average in the 2008-2010 period.
The MPI, however, said the FDI disbursement is estimated to have reached roughly US$29 billion, too modest compared to the huge figure of registered capital.
This year to accelerate the disbursement, the MPI will pay more attention to inspecting projects in different groups with focus on projects which have not yet become operational due to difficulties, Thang added.
He also noted that more incentives will be offered for foreign investors, particularly those to invest in 20 localities with the highest FDI capital.
Investors of projects worth over US$100 million have to submit quarterly detailed reports to the MPI for consideration. (Vietnam & World Economy,
www.toquoc.vn))
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