Vietnam to See FDI Inflow Late This Year: VinaCapital CEO
Vietnam will witness a new foreign direct investment (FDI) wave at the end of this year and early next year as a large influx of companies will come back to the country after the global economic downturn, said CEO of VinaCapital Don Lam.
The Southeast Asian country, which has a population of 86 million with two-thirds of them aging below 35, has been attractive to foreign investors, Don Lam said on the sidelines of the World Economic Forum (WEF) on East Asia in HCM City on June 6-7.
He also cited the country’s political stability and cheap and abundant labor force as other major reasons.
The VinaCapital official forecasted that Vietnam’s services sector, finance, education and health will grow strongly in the next decade, with the development of hard-trademark and domestically-made products.
The Vietnamese government has focused on infrastructure development to facilitate the business environment by diversifying investment forms, including the public-private partnership to attract the private capital.
He said the WEF is a good chance for Vietnamese companies to seek new partners and around 20 local firms are ready to join the WEF.
VinaCapital became a member of WEF in 2007 and it acts as the major donor for the WEF on East Asian held in Vietnam.
Vietnam’s FDI disbursements are estimated to rise 7.1% from a year earlier to $4.5 billion in the first five months of 2010, including $1.1 billion in May. During the period, the country licensed 360 projects totaling $7.1 billion and allowed 107 existing projects to add their capital by $403 million, up 40% and 8.6% from a year earlier, respectively. (VietnamNet)
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