As much as 45.2 per cent of Vietnam’s total foreign investment last year was poured into the industrial sector, VietNamNet reported.
Of 1,445 foreign-invested projects licensed last year, US$8.06 billion were poured into 823 projects in the industrial sector, accounting for 45.2 per cent of the total registered capital, the source said.
Foreign investment in Vietnam’s industrial sectors soared considerably from 16.9 per cent in 1991 to 23.65 per cent in 1995, 26.5 per cent in 1996, 41.3 per cent in 2000, 36.4 per cent in 2006 and 43.8 per cent in 2007.
FDI-invested sector posted average growth rate of 12 per cent in the 1991-1995 period, the figure was over 20 per cent annually from 1996 to 2000. In the January-September period of 2007, though oil and gas output fell 6.1 per cent, the growth of production value of other fields rose 23.4 per cent.
Thanks to high growth rates and an increasing ratio, foreign investment in industry has significantly contributed to the growth of the whole industrial sector.
Foreign investment in industry has indirectly helped train a contingent of skilled and professional managers and workers, who have chances to access advanced technology and management skills at foreign-invested firms.
In the 2008-2010 period, the industrial sector will focus on developing energy infrastructure. Vietnam’s current demand for energy grows over 10 per cent annually and it is 15 per cent-20 per cent for electricity, putting great pressure on the power sector.
Vietnam needs US$8 billion -US$10 billion a year to invest in oil and gas, electricity, coal industries, including US$4 billion - US$5 billion in electricity. Loans granted by international organizations and capital from the state budget can meet around 30 per cent of the total need so the ratio of capital mobilized from foreign investors will be the key.
According to the Ministry of Industry and Trade’s International Cooperation Agency, foreign investment tends to flow into energy and mining industries. The government of Vietnam must have policies to encourage foreign investment in key industries, including hi-tech and supporting industries.
The foreign-invested sector makes up 100 per cent of crude oil exploitation, most of automobile, washing machine, air conditioner, office equipment, and computer output, 63 per cent of motored-vehicles, around 60 per cent of rolled steel, 33 per cent of electric and electronic equipment, 76 per cent of precise medical equipment, 55 per cent of fibre output, 49 per cent of leather and footwear, and 25 per cent of food and drink. (VietNamNet)
Vietnamese
