Vietnam FDI Disbursement Estimated at US$19.6B After WTO Entry
Foreign investors are estimated to disburse US$19.6 billion in foreign direct investment (FDI) in Vietnam after the Southeast Asian country joined the World Trade Organization (WTO) in 2007, the Ministry of Planning and Investment (MPI) said.
The figure is 1.6 folds higher than the disbursed FDI of the 2001-2006 period, the Thoi Bao Kinh Te newspaper reported Monday, citing the MPI.
The MPI said the country licensed 4,098 FDI projects totaling US$114.15 billion between 2007 and 2009, up 3.5 folds against the value of the 2001-2006 period.
Despite the impressive figures, economists warned that FDI quality is now a worrying issue in the country, urging the local government to tighten control over FDI projects.
Delays of mammoth projects like a US$10-billion steel complex in Ninh Thuan province and a US$4.15-billion tourism complex in Quang Nam province have exposed the lax management of the government over FDI.
Deputy Director of the Central Institute for Economic Management Dr Vo Tri Thanh said
a large number of FDI firms, particularly in Ho Chi Minh City, reported losses but still expanded operations.
He added that the situation called “false losses, real profits” may be a trick of FDI firms to invade taxes. (Vietnam Economic Times)
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