5:36:46 PM | 11/7/2008
Le Dang Doanh, a leading economist in Vietnam, has recently warned of unprecedented impacts by FDI pouring into the Asean country&rsquos real estate because FDI investment invested into realty has kept soaring, reaching US$13.12 billion in Jan-Jun, accounting for 96 per cent of the service sector&rsquos total.
FDI-invested tourism projects only help boosting the development of the local tourism sector, but have not helped jobs for locals and accelerate technology transfer and exports as well, Mr. Doanh cited by the An Ninh Thu Do (Capital Security) newspaper as saying Monday.
Worse still, investors of FDI projects have the right to own lands, particularly farmlands for 50 and 70 years, which will have bad impacts on the country&rsquos socioeconomic plans and food security, Mr Doanh emphasized.
Massively licensing FDI-invested realty and gold courses projects in recent years are partly attributed to inflating lands and property prices, steel and construction materials, analysts said.
FDI poured into the realty sector has accounted for 42 per cent of the total, up from 35 per cent in 2007, and 22 per cent over the past 20 years, the newspaper said.
Ho Chi Minh City is taking the lead in Vietnam with FDI accounting for up to 80 per cent and 19 biggest FDI-invested realty projects, the Ministry of Planning and Investment said.
Between Jan and Jun, Vietnam recorded US$31.6 billion pledged FDI, tripling that last year. (Capital Security)
Vietnamese
