Beside the new record attraction of foreign investment capital, the overseas investment activities of Vietnamese companies also had spectacular progress in 2006. This is a very favourable ground for the intensification of Vietnamese investment activities abroad in 2006-2010.
Initial success
Mr Phan Huu Thang, Director of Foreign Investment Agency under the Ministry of Planning and Investment, said Vietnam has so far had 183 valid projects abroad with combined investment capital over US$968.13 million. The industrial sector drew the most Vietnamese capital, 74.5 per cent of the total, followed by the agriculture and service sectors.
However, targeted destinations are still limited to only a few countries. Laos and Russia attracted the most Vietnamese overseas projects, with 63 projects valued US$416.3 million, and 11 projects worth US$73.06 million respectively. Nevertheless, PetroVietnam’s oil and gas exploration and exploitation project in Algeria took US$243 million.
“Overseas investment by Vietnamese companies will be more active,” Thang forecast. First of all, the financial capacity of Vietnamese companies is stronger and they want to expand production and business area by investing abroad to enlarge the consumption market, save production costs, minimise transport costs and take advantages of international integration.
Soaring overseas investment
According to the Foreign Investment Agency forecast, Vietnamese investment outflows will rise sharply through 2007. Total investment capital abroad may reach US$350 million, including US$100 million disbursed this year, up 25 per cent against 2006.
Thang said the forecast is based on the investment situation in 2006, and the encouragement for overseas investment. The Ministry of Planning and Investment is completing an overseas investment incentive project which will be submitted to the Government for issuance within 2007. The simplification of overseas investment procedures will give enterprises quick access to business opportunities, and reduce costs and time required for investment projects. This move gives the green light to new waves of overseas investment.
According to figures released by the Foreign Investment Agency (Ministry of Planning and Investment), 33 Vietnamese-invested projects were licensed abroad with combined registered capital of US$136.5 million in 2006. The average investment size was US$4.12 million per project. In the year, four projects increased investment capital with a total of US$211.2 million, PetroVietnam’s oil and gas project in Algeria being the largest with US$208 million. In total, Vietnamese firms invested US$347.3 million abroad in 2006.
Huong Ly
Vietnamese
