Vietnam attracted a total of US$3.97 billion worth of pledged foreign direct investment (FDI) capital in the first eight months of the year, including US$2.96 billion from 426 fresh projects and the rest from capital increase of 214 existing ones, according to the government’s General Statistics Office (GSO).
In the period, the country saw a rise of just 3.1 per cent in fresh FDI capital, despite a fall of 32.7 per cent in project number compared to the same period of last year.
In August, the country licensed only 18 FDI projects worth $99.45 million, far lower than the monthly average of the first seven months. This is allegedly attributed to the late introduction of guidance for the common Investment Law and unified Enterprise Law.
The two laws took effect early last month but a full set of guidance for their implementation is not yet available, also causing a setback for FDI disbursement in the month, which is estimated at $250 million, down 32.5 per cent on-month.
Among the sectors, the heavy industry took the lead with $1.1 billion for 121 projects, followed by the tourism and services sector with over $401.6 million for six projects, light industry with $382.8 million for 128 projects, urban construction with $314 million for one project, transport and post sector with $257 million for 10 projects.
Ho Chi Minh City continued to be the largest FDI attractor, making up 35.03 per cent of the country’s approved FDI capital in the phase. The runners-up were Hanoi, accounting for 16.39 per cent, Ba Ria-Vung Tau 17.43 per cent, Ba Ria-Vung Tau 11.98 per cent and Binh Duong 4.43 per cent.
Hong Kong remained the biggest investor among the 33 countries and territories investing in Vietnam during the time with $629.6 million for eight projects. The followers were South Korea with $558.3 million for 117 projects, the US with $444 million for 25 projects, Japan with $376 million for 70 projects and British Virgin Islands with $287 million for nine projects.
Between January and August, the foreign-owned sector reported an industrial production value of VND124.6 trillion ($7.83 billion), representing an on-year growth of 19.1 per cent.
It also fetched $15.03 billion in export value out of the total $25.98 billion of Vietnam, up 26.9 per cent against the corresponding period of 2005.
According to the Ministry of Planning and Investment, Vietnam has set a goal to attract around $7 billion in FDI next year.
In a bid to fulfill the target, the ministry and relevant authorities are planning to launch a series of promotion programs abroad from now to the end of the year.
Notably, it is seeking the Government’s nod to set up investment promotion representative offices in some key markets namely Japan, US, and the EU.
In November, on the occasion of the APEC Summit, a big investment forum will be launched. It is expected to attract 800 big groups worldwide and 200 Vietnamese enterprises.
In addition, the government will soon present a list of projects calling for investment in the 2006-2010 period.
GSO, Investment
Vietnamese
