Foreign Investment on the up

Foreign Investment on the up

According to the Department of Foreign Investment, total registered foreign investment capital into Vietnam since early this year has reached US$942 million with nine foreign-invested projects capitalised at US$25.2 million licensed in July. The month also saw seven projects allowed to increase their investment capital by US$103.3 million, bringing total increased investment capital to US$989.4 million, higher than the total investment capital of new projects and up by 3.4 per cent against that of the same period last year.

Although the number of new projects licensed in the first seven months and their capital volume was only equal to 79 per cent and 88.4 per cent, respectively, of the same period last year, total capital of new projects and projects applying for additional investment reached more than US$1.93 billion, up by 24.2 per cent against the previous year. This figure shows that the foreign-invested sector continues to operate effectively, though Vietnam’s ability to attract new foreign-invested projects remains weaker than other countries in the region. According to preliminary report from the Ministry of Planning and Investment, the foreign-invested sector led in terms of growth rates in the first seven months of this year with industrial production value up 14.4 per cent; export turnover (including crude oil), 32.4 per cent; import value, more than 15 per cent; revenues, 20.8 per cent; State budget contribution, 14.3 per cent; and realised investment capital, 10 per cent.

The Department of Foreign Investment is optimistic about investment attraction in the final months of this year. It currently has important projects to consider and evaluate, valued at hundreds of millions of US dollars, in the mobile phone and cement industries. If some of these projects are licensed, foreign investment capital in the five remaining months will soar. Total investment capital of new projects is predicted to reach US$3.3 billion or more. Meanwhile, total realised capital will reach about US$2.5 billion. If Vietnam amends its tax policies and considers other economic reforms in a timely manner, it will attract even more foreign investment.

• T.G