FDI into Vietnam Likely to Reach US$8.5Bln This Year

Foreign direct investment (FDI) flowing into Vietnam this year is likely to reach US$8.5 billion, forecast Director of the Foreign Investment Department Phan Huu Thang.

 

The FDI influx into Vietnam has so far this year climbed to US$7 billion after the US’s Intel Group decided to raise its capital in the country to US$1 billion, Thang said. 

 

He also added the figure would touch around $8.5 billion as the Ministry of Planning and Investment (MPI) has transferred some 20 projects totaling more than $5 billion to provinces and cities to consider and approve under the regulations on decentralization of the investment licensing authority in the new Law on Investment, which took effect on July 1, 2006.

 

Vietnam will focus on seeking foreign investors to do business in disadvantaged areas, the hi-tech sector, infrastructure, and development of supporting industrial sectors.

 

On November 16, Vietnam signed eight projects worth $2 billion with APEC partners during the Doing Business with Vietnam 2006 Forum.

 

The country attracted a combined FDI capital of over $6.4 billion in the January - October period, up by 41.4% on-year, equivalent to 99.7% of the annual plan, reported the MPI.

 

Vietnam opened its door for foreign investment from 1988, and the country licensed the record FDI volume of $9.396 billion in 1996, just before the 1997 Asian financial crisis, of which foreign firms actually disbursed $2.646 billion.