Vietnam Posts US$16.5Bln Development Investment in 2004, 36.3 per cent GDP

Vietnam announced total development investment from all economic sectors reached VND258.7 trillion (US$16.5 billion) in 2004, up nearly 19 per cent on-year, equalling 36.3 per cent of the country's gross domestic product (GDP) in the year, and exceeding 4 per cent against the target set for the whole year.

Of the figure, capital from the State budget accounted for 23.6 per cent, or VND61 trillion (US$3.9 billion), up 29.7 per cent on-year and representing 114 per cent of the annual target. Capital from State preferential credit totalled VND29 trillion (US$1.85 billion), up 1.8 per cent and equal 97 per cent of yearly projection.

Meanwhile, investment from the private sector made up 26.8 per cent of the country's total development investment, standing at VND69.5 trillion (US$4.43 billion), up 19.6 per cent on-year. Direct foreign investment was VND44.2 trillion (US$2.8 billion), up 21 per cent on-year. Investment capital from State-owned enterprises amounted up to VND47 trillion (US$3 billion), up 22 per cent against that in 2003.

Funds mobilized from other sources such as government bonds, construction bonds and education bonds for development investment were estimated at VND7.8 trillion (US$496.8 million), meeting 64 per cent of this year's target.

The Ministry of Planning and Investment (MPI) recently forecast Vietnam must mobilize around VND300 trillion (US$19.1 billion) as development investment in 2005 to secure an economic growth of 8.5 per cent set by the National Assembly.

• P.V