The performance of FDI enterprises in 2010 was relatively good. In spite of complex developments in domestic and international markets, the foreign-led sector managed to get through difficulties and challenges to obtain good results in registered investment capital, disbursed capital and business performance, and continue making important contributions to the overall economic development of Vietnam.
FDI capital accounted for 25.8 percent of Vietnam’s total social investment capital in 2010, up from 25.5 percent in 2009; its industrial production value expanded 17.2 percent from 2009 and was higher than the national average industrial production growth of 14.7 percent; its total export value reached US$38.8 billion, up 27.8 percent from 2009 and accounted for 53.1 percent of the country’s total exports; and its import value totalled US$36.4 billion, up 39 percent over 2009 and equal to 42.8 percent of the country’s exports. Thus, the trade surplus of the FDI sector was US$2.35 billion in 2010. This was a highlight of the sector in 2010, as it significantly contributed to narrowing Vietnam’s trade gap.
In 2010, Vietnam attracted US$18.59 billion of registered FDI capital (including both fresh and supplementary capital), equal to 82.2 percent of the value in 2009 and nearly equal to the target set for 2010. The FDI flow into Vietnam is encouraging, given the difficulties arising from the global economic downturn. It shows that the Vietnamese investment environment remained very attractive to foreign investors.
In 2010, Vietnam invested in 107 projects worth US$2.93 billion in 25 countries and territories and added US$87.1 million to nine existing projects, bringing the total amount of overseas investment to over US$3 billion. Vietnamese investors disbursed US$900 million in foreign countries in 2010, including over US$700 million for the mining industry, US$70 million for the agricultural, forestry and aquatic sectors, US$53 million for the distribution, wholesaling and retailing industries, US$33 million for the telecom industry, and US$25 million for the electric manufacturing sector.
With the results achieved in 2010 and favourable conditions in 2011, Vietnam expects to see FDI investors disburse US$11 - 11.5 billion for their projects and register to invest US$20 billion in 2011.
To meet these objectives, authorities from central to local levels need drastic and consistent measures to promote the attraction and performance of FDI capital flows. Particularly, the country will focus on important measures like perfecting laws on investment and business, expanding investment resources to give infrastructure systems a facelift, enhance human resource quality, and speed up public administration reform to facilitate foreign investors investing and disbursing capital in Vietnam.
According to the Ministry of Planning and Investment, in 2011, authorities will intensify examination and supervision of foreign-invested projects when they verify and grant investment certificates. Accordingly, projects with large registered investments, large land area requirements, environmental impacts, large use of mineral resources, absence of downstream processing, or excessive use of energy will be examined more carefully to ensure effective use of domestic resources and sustainable development. Projects categorized as delayed will face appropriate measures, including revocation of investment licences to open up opportunities for other investors with greater potential and determination.
Overseas investment is forecast to keep its growth momentum in the coming time. Nonetheless, due to Vietnam’s small economic scale, heavy export reliance, large trade deficit, non-guaranteed international payment balance, small foreign exchange reserves and tightened monetary policies (despite some loosening), overseas investment at present and in coming years needs to be controlled to ensure macroeconomic balance and stabilise the economy. Vietnamese investors are expected to invest US$1.5 - 2 billion in other nations in 2011 and disburse approximately US$700 - 900 million.
Foreign investors registered to invest US$2.372 billion (both fresh and additional capital) in Vietnam in the first three months of 2011, down 33.1 percent from a year earlier. FDI projects were estimated to disburse US$2.54 billion in the reporting period, representing a rise of 1.6 percent year on year.
Processing and manufacturing industries took the lead in attracting foreign finance with US$1.55 billion, accounting for 65.37 percent of the total, followed by the construction sector US$205.84 million (28 new projects), or 8.68 percent of the total, the retail sector with US$50.31 million, and the IT sector with US$30.84 million.
Since the start of 2011, 22 countries and territories have invested in Vietnam. Singapore was the biggest investor with US$1.08 billion, accounting for 46.74 percent of the total investment. Hong Kong was the runner up from March with US$331.54 million, accounting for 13.98 percent of the total.
(MPI)
Vietnamese
