Safety clothing is made by workers at the Japan-invested Toyotsu Vehitecs Viet Nam in the southern province of Binh Duong.
The disbursement of foreign direct investment (FDI) this year reached last year's figures of US$11 billion despite challenges caused by tough economic conditions, the Foreign Investment Agency (FIA) reported yesterday.
In 2011, the country attracted $14.7 billion in FDI, equal to 74 per cent of 2010. Over $11.5 billion came from 1,091 newly-licensed projects while the rest was from 374 existing projects that increased their capital.
"Despite the disbursement figure, most of these projects have decreased investment but there is a clear sign that Viet Nam poses a great place to investment for foreign investors," said head of FIA Do Nhat Hoang.
Hoang attributed the down-turn to a lowering of capital for projects costing more than $1 billion dollars.
In previous years, Hoang said, capital from such projects had accounted for the majority of total registered capital but this year it had come down.
Hoang cites the fact that in 2008 there were 11 projects with more than $1 billion in capital which accounted for 64 per cent of total capital, which was lowered to five in 2009, three in 2010 and only two this year.
Another key difference from last year was that less investment had been put into real estate, which made up only 5.8 per cent of total investment, compared to 34.3 per cent last year.
The industrial and construction sector attracted the largest share of FDI, accounting for 76.4 per cent.
"It is a really high scale because it was only 54.1 per cent in 2010," Hoang said.
Singapore, South Korea, Japan and Taiwan continue to be Viet Nam's leading sources of foreign investment.
Provinces and cities which attracted a large volume of FDI were HCM City, Ba Ria-Vung Tau, Ha Noi, Dong Nai and Binh Duong.
Despite a global economic downturn, the foreign-invested sectors have continued to make a significant contribution to the country's economy this year.
An estimated $54.5 billion was generated from exports this year, a year-on-year increase of 39.3 per cent, and 59 per cent of the country's total exports.
Imports surged by 29.3 per cent against last year's figure of $47.8 billion.
Yesterday, FIA also announced that in 2011, 75 projects were licensed to invest in 26 foreign nations and territories and the investment in 33 projects had been authorised, totalling $2.12 billion.
Plans for 2012
FIA has forecast that registered FDI was likely to reach $15-16 billion and about $10-11 billion would be implemented in 2012.
"FDI attraction next year will focus on quality rather than quantity," said Deputy Minister of Industry and Trade Nguyen Tien Phuong.
"Viet Nam will welcome projects in fields such as green-technology, high-tech industry and human resources."
He added that the country would limit investment in non-production sectors.
Sectors increasing imports and projects using out-of-date technologies which harm the environment would be heavily scrutinised, Phuong said.
"To reach this goal, new regulations and new priorities will be set up."
Last year, the country attracted US$19.7 billion in FDI and disbursed US$11 billion.
Source: CPV/VNS
Vietnamese
