Stable economic growth together with the improved investment and business environment makes Vietnam more attractive to world-leading groups, which are increasing their investments.
Mr Phan Huu Thang, Director of Foreign Investment Agency under the Ministry of Planning and Investment, said some 50 foreign direct investment (FDI) projects are applying to invest more than US$50 billion in Vietnam.
The average investment size of these projects is much bigger than the overall average, with total investment capital over US$70 billion.
A majority of pending projects are in high-tech, thermal power, real estate or steel production, and require large sums of investment capital.
For example, Japan’s Sumitomo Group plans to invest US$3.8 billion to build a 2,640-MW thermal power plant in Van Phong Economic Zone, Khanh Hoa Province after two years of preparation.
Sumitomo also recently obtained a licence to enter a joint venture with state-owned Vietnam National Shipping Lines (Vinalines) to build Van Phong international transhipment terminal, at initial cost of nearly US$200 million.
A representative from Sumitomo said these two projects are only the initial steps in the group’s long-term strategy in Vietnam. The group plans to triple investment capital for the international terminal.
Apart from Sumitomo, a joint venture between United States’ AES Group and state-owned Vietnam Coal and Mineral Industries Group (Vinacomin) will invest nearly US$1.5 billion to build a 1,200-MW Mong Duong thermal power plant No. 2 in Quang Ninh province.
The real estate and tourism sectors also attract significant investment. Notably, the Asian Pearl project, which includes financial centres, hotels and urban complexes on Phu Quoc Island, requires an estimated US$2.7 billion investment by Switzerland’s Trustee Suisse and Vietnam Construction Import-Export Corporation (Vinaconex). South Korea’s Kumho Asiana also plans to invest US$2.5 billion to build a cultural and commercial centre in Giang Vo and My Dinh exhibition centre in Hanoi City. The two South Korean projects are expected to be complete before 2010.
Also according to the Foreign Investment Agency, after the US$1 billion Intel project, the Vietnamese information technology industry has become more attractive to foreign investors with big projects.
Taiwan’s Foxconn Group revealed plans to invest US$5 billion to build electronics industrial zones in many provinces in the country and the group expects to open an electronics production factory in Bac Ninh Province. The United Kingdom-based Pacific Land Limited is investing US$1 billion in Sai Dong Industrial Park A in Hanoi City.
Notably, Chinese firms applied to invest in five mammoth projects, mainly in thermal power and real estate. During President Nguyen Minh Triet’s China visit in May, the two sides signed memoranda of understanding on these five projects.
Vietnam’s An Phu Corp and Vinalines together with China’s Zhaoshang Corporation and Kaifa Bank will build the An Phu Hung new urban zone in Ho Chi Minh City and Ba Ria-Vung Tau province with $1 billion capital. In addition, Chinese investors will pump US$650 million into a thermo-power plant in Ho Chi Minh City and US$400 million in a luxury trading zone and the Ha Long-Mong Cai highway.
However, Mr Phan Huu Thang said although FDI capital attraction is higher than last year, this is still below its potential when investors from Japan, South Korea, Taiwan and the United States are seeing Vietnam as the top-priority destination.
Thus, Vietnam will organise and send investment promotion delegations to Japan, South Korea, Singapore, the US and the Middle East in the coming time, Thang added. (VNA)
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