Major investors in Vietnam in the first quarter of 2010 included South Korea with 26.3 percent of total newly registered capital, Singapore with 7.1 percent, Slovakia with 5.2 percent, British Virgin Islands with 4.9 percent, Taiwan with 3.6 percent, and China with 1.4 percent. The United States has emerged to become the largest investor in Vietnam, accounting for 47.8 percent of total newly registered capital.
In 2009, the United States was the largest foreign investor in Vietnam and US-based companies registered to invest US$9.8 billion in 55 projects, accounting for 45.6 percent of the total foreign registered investment capital in the Southeast Asian nation.
In 2010, hotel, accommodation, service and especially real estate will be very attractive to US investors. With current economic growth and recovery, the Vietnamese property market becomes very potential and it is understandable to be a top target of US investors. However, to ensure safe and sound business for investors, the Ministry of Planning and Investment has warned of risks in real estate sector.
Besides, Vietnam is an emerging market with great opportunities; thus, US-based electronic, automobile, machine companies, etc. are considering Vietnam a good place to locate their factories.
Mr Herb Cochran, Executive Director of the American Chamber of Commerce in Vietnam (AmCham), said that Vietnam is considered the optimal choice of US companies investing in ASEAN. Vietnam will become expanded satellite plants in addition to main establishments in China and India. Normally, investment is followed by trade and this is, thus, the main reason for US companies to have deep interest in Vietnam. As the chair of ASEAN in 2010, investment opportunities in Vietnam will be more and more open.
In addition to attractive investment fields, the Vietnamese Government’s effort to accelerate investment capital disbursement is highly appreciated by foreign investors. According to the report released by the General Statistics Office (GSO) on March 30, 2010, Vietnam is urging and guiding the implementation and disbursement of projects funded by the State budget, Government bond proceeds, State development investment credit, State-owned enterprises’ development investment capital to compensate for the implementation of slowly progressed State-funded projects (completing only 17.4 percent of the full-year plan in the first quarter). Therefore, the disbursement of big FDI companies like the US becomes a matter of special concern of the Government.
Besides, to increase the efficiency of foreign investments in Vietnam, the Government continues to innovate and perfect mechanisms and policies to encourage all non-State economic sectors to expand investment, apply measures to attract foreign direct investment to rebound as the registered foreign investment capital slumped 70 percent in the first quarter of 2009 and continued to fall 71 percent in the first quarter of 2010.
Reportedly, the Ministry of Planning and Investment will channel FDI inflows into important areas such as supporting industries, infrastructure and human resource development. Other prioritised sectors include agricultural processing, services with high added value, energy-saving industries and export-oriented industries.
Kim Phuong
Vietnamese
