VietnamNewsToday.com

Positive signs in FDI flow amid decreases

Last year’s foreign direct investment (FDI) reached nearly US$18.6 billion, equal to 82.2 percent of the previous year. Although the country has not fulfilled the set FDI target of US$22-25 billion, the results still prove investors’ strong confidence in Vietnam’s business environment.

FDI disbursement boosted despite decreased inflow
Last year, around 55 nations and territories in the world poured their money in Vietnam. Singapore took the lead among major foreign investors with the total registered investment capital of more than US$4.4 billion, making up nearly 24 percent of the total FDI, followed by the Netherlands and the Republic of Korea.

The failure in fulfilling the FDI target is attributed to the world’s economic downturn, slow progress in upgrading infrastructure and human resources which do not meet investors’ demands. Another reason is that localities need to improve the effectiveness of their assessment when granting investment licenses, after a series of projects worth billions of US dollars have been implemented at a very slow pace. Dr Ha Xuan Tu, Deputy Head of the Department for Foreign Economic Relations under the Ministry of Planning and Investment further explains that the State’s objective is to promote socio-economic development along with environmental protection.

FDI disbursement continued to be in the spotlight last year. US$11 billion in FDI have been disbursed, up 10 percent compared to the previous year’s figure thanks to active and effective measures taken in recent time.

FDI projects should be carefully scrutinized
One of the alarming issues in the management of FDI businesses is that over 50 percent of them have claimed losses and that most of joint ventures turned out to be entirely foreign-invested. Despite proving that they had been claiming losses, they continued to expand their production and business activities, in fact, evading taxes. Many localities have withdrawn their investment licenses. It is necessary to devise policies to improve the quality of FDI, for example through preferential treatment to hi-tech projects, as well as projects that contribute directly in the country’s socio-economic development.

Director of the Foreign Investment Research Centre, Dr Phan Huu Thang says that it is high time that we carefully select these projects which meet the demands of the country’s socio-economic development and promote its industrialisation and modernisation process.

President of Foreign Investment Business Association, Dr Nguyen Mai says that the country should adjust its orientations and policies to improve the quality of FDI inflow into Vietnam. Priority should be given to projects in such fields as electronics, informatics, services and training of highly qualified human resource, and modern healthcare centres, as well as technical infrastructure.

With last year’s positive results, it is forecast that FDI disbursement is likely to reach US$11-12 billion this year with a registered capital reaching around US$20 billion. Deputy Minister of the Planning and Investment Dang Huy Dong affirmed that this year will focus on attracting large-scale projects with major partners, creating favourable conditions for Vietnam to increase the added value and get involved in the global value chain.

A lesson learnt from FDI attraction last year is to withdraw investment licenses of delayed or unfeasible projects. This way, the land can be used for feasibility projects that benefit the national economy as well as workers. This is also of the measures to improve the quality of FDI in 2011 and the following years, meeting the country’s demands for development in the near future.

From VOVNews

Newer Articles
  • EVNTelecom asks for government’s approval to sell 12pct stake for VTC
  • Vietnamese enterprises expanding into international markets
  • Ernst & Young Vietnam role to be examined
  • Vietnamese firms invest over $24.5b in foreign countries as of July-end
  • Vietnam Insurance Market: Keeping Double-digit Growth
  • Vietnam’s economy looks grim with ADB’s forecast
  • Fearing recession in EU, Vietnamese businesses try to seek new markets
  • Rise in bad bank debt exposes economy
  • Tighter spending helps curb inflation
  • Expert predicts inflation at single-digit rate in 2012
Older Articles
  • Unfavourable time forces firms to postpone International bond issuance
  • 45tr dong bond funds to be allocated in 2011
  • Opportunities open for business in US
  • Investment hot spots
  • Finance group proposes SOE restructure
  • MPI ups the ante on inspections
  • Investment promotion: big money, big efforts still ineffective
  • Where to invest in 2011?
  • FDI attraction– advantages and challenges
  • NA Standing Committee analyses ineffective gov’t bonds
Latest News
  • Vietnamese software firms consider Japan as the major market
  • Despite problems, 2011 FDI spending equals 2010
  • EVNTelecom asks for government’s approval to sell 12pct stake for VTC
  • Vietnamese enterprises expanding into international markets
  • Ernst & Young Vietnam role to be examined
  • Vietnamese firms invest over $24.5b in foreign countries as of July-end
  • Vietnam Insurance Market: Keeping Double-digit Growth
  • Vietnam’s economy looks grim with ADB’s forecast
  • Ministry rejects import-export tax changes
  • Government okays anti-dumping suit against US
For Foreigners
  • Adb: policy tightening will lower inflation
  • HSBC, Barclays to advise Vietinbank’s planned overseas dollar bond sale
  • Vietnam govt to service debt for troubled cement projects
  • Calm heads prevail as the forex market to remain cool
  • Further fiscal & monetary tightening in coming months
  • IMF cuts Vietnam’s inflation forecast to 9.5pct in 2011
  • Vietnam’s dong has best week since 1997 after dollar rates curb
  • Vietnam tightens control over state-bank partnership
  • Foreign investors list problems in Vietnam
  • Foreign invested enterprises complain about customs procedures

BusinessTradeVietnamGovernmentFDIWorld economyVietnamese PartyEconomyEconomicMarketState managementPrime MinisterHCM cityHanoiHo Chi MinhCPIAsianWorldAmericaEuropeNguyen Tan DungHau GiangMekong DeltariceStandingMekongCambodiausajapanchinakoreaLai ChauHoa BinhHoi AnChu LaiQuang NamDa nangCan thoSon LaPower PlantMinistry of IndustryDung QuatOilSingaporeThailandMalaysiaIndonesiaLaosVietnameseFDI capitalinvestorsforeign investorNetherlandsUSservicetransportationinfrastructuretourismVNPostExpressSpainGoldTra fishexportcontractstouristMiddle AreaConstructionShipbuildingIndustryCompanyIndustrial ZonebudgetDong NaiBinh DuongVung TauTay NinhBinh PhuocTay NinhLong AnTien GiangUS investorshydropower plantQuang NinhNha TrangStock ExchangeHNXIndexcapitalAgricultureDong ThapAn GiangExport-Processing ZoneYen BaiLao CaiLai ChauDien BienSon LaHoa BinhPhu ThoHa GiangTuyen QuangBac KanLang SonCao BangmanufacturersAseanRussiadevelopmentAviationinflationHong KongAmericanChamber of CommerceSeafoodODAWBIMFFEDAsia-PacificAssociationcountriesEuropeanmarine economyThanh HoaNghe AnNam DinhHa TinhPhu LýVinh PhucBac NinhBac GiangHung YenHai DuongBinh ThuanBinh PhuocLam DongGia LaiKon tumQuang NgaiQuang BinhQuang TriNinh ThuanCa MauBac LieuSoc TrangTra VinhKien GiangVinh LongBen TreincomespoliciesLawassetsNatural GasBuildingstatisticsstrategyDa Latmineral exploitationprocessingindustrieselectricitywatersupplyEnterprisesforestryfisherycommunicationsreal estatetransportationCorruptionbauxiteSecuritiesInsuranceBankFinanceAccountgoodsTrade BalancecoffeeCoalfestivalHa NamNinh BinhHoa BinhUniversityArtsBooktravelVietnam VisaVisaPagodaCommitteePeople's CommitteeVinashincompaniesHoa PhatHSBCACBvietcombankvietinbank

Copyright 2010 © VietnamNewsToday.com 
Powered by: CIINS Design by: Webdesign.vn