The Foreign Investment Agency (FIA) under the Ministry of Planning and Investment said Vietnam attracted US$4.267 billion of foreign direct investment (FDI) capital in the year to April 20, down 31.5 percent year on year. Notably, in the last week of April, many big projects were licensed, thus increasing FDI amount in the country in the four months.
Specifically, 169 projects worth US$3.009 billion were licensed in the reviewed period, down 27.4 in projects and 65.9 percent against the same period in 2011. Meanwhile, 73 existing projects were allowed to raise their investment capital by US$1.168 billion.
Processing and manufacturing sector surpassed real estate to become the most attractive sector to foreign investors. It was worth US$2.3 billion, accounting for 55.6 percent of the total FDI, while the real estate sector lured over US$1.5 billion.
As many as 27 provinces and cities had new FDI projects in the first four months. Southern Binh Duong province drew the largest share of FDI, worth US$1.58 billion, accounting for 40.8 percent of fresh FDI capital, followed by northern Hai Phong City with US$612.6 million and Quang Ninh province with US$347.7 million.
Out of 28 nations and territories investing in Vietnam in the reporting period, Japan was the largest investor with US$2.3 billion, making up 76.2 percent of the total, followed by Hong Kong with US$349.9 million (11.3 percent).
According to experts, global economies are forecast to be uncertain in 2012 but FDI attraction results were positive signs for the economic recovery of Vietnam. And, if the current situation continues in the rest of the year, the objective of disbursing US$10 - 11 billion of FDI capital assigned to the Ministry of Planning and Investment by the Government is likely within reach. However, the Ministry of Planning and Investment said it did not pay too much attention to attracting new capital but it focused on disbursing capital for licensed projects. In addition, it will be more selective with fresh projects.
Mr Nguyen Van Tu, Deputy Director of Department of Planning and Investment of Hanoi City, said: While FDI attraction increased for the whole country, it tended to shrink steeply in Hanoi. The capital city licensed 42 new projects worth over US$35 million in the first quarter of 2012, down 31 percent in project and 90 percent in value from the same period in 2011. Including the investment increase by existing projects, the city lured US$147.6 million, down 81 percent. Specifically, 22 existing projects registered to add US$112.3 million to their investment capital. A project in Quang Minh Industrial Park, Me Linh district added the biggest value of US$73.5 million. However, 12 FDI enterprises left business locations and five announced to end operations temporarily because of financial difficulties. To keep pace with the country, Hanoi will need more preferential policies to attract investors in addition to better investment mechanism, location, infrastructure and human resources. It targets at 470 projects valued at US$1.5 billion in 2012, up 6 percent over 2011, Mr Tu said.
Anh Phuong
Vietnamese
