FDI Inflow to Vietnam Likely at $20B in 2011: PwC
Foreign direct investment (FDI) inflow to Vietnam is likely to hit $20 billion in 2011, said analysts at a seminar organized by PricewaterhouseCoopers (PwC).
With three credit rating downgrades and two currency devaluations last year clogging venues of corporate funding, Vietnamese companies will likely welcome private equity investors with open arms.
The Southeast Asian nation's largest foreign investor is Taiwan, followed by South Korea, Singapore and Japan.
Stephen Gaskill, a partner in PwC Vietnam, said that “the constant devaluation of the dong means that when you get your money out, it's not going to be worth as much as when you first made your investment"
He added that despite the troubles that the country is facing, the government is working to resolve these issues.
While, Raymond Lui, centre director, Hanoi, International Operations Group, IE Singapore said that Vietnam's rapid urban development and the growth of the middle class will support local consumption.
Vietnam licensed 969 FDI projects with a total pledged capital of $17.2 billion and allowed 269 existing projects to add their capital by $1.4 billion in 2010. Total FDI disbursement rose 10% to $11 billion in the country during the year. (
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