Ashui.com

Vietnam has set a target of luring just 20 billion USD in foreign investment this year, nearly one-third of 2008’s figure, due to the global economic downturn.

Despite this modest target, foreign investors still appreciate Vietnam ’s investment environment and its mid- and long-term prospects, according to Phan Huu Thang, Head of the Ministry of Planning and Investment’s Foreign Investment Department.

Thus, Vietnam will still attract plenty of foreign investment after 2010, he added.

Ho Tram Tourism and Resort Complex

Addressing a seminar on the impacts of the WTO’s accession upon foreign investment activities in Vietnam on Jan. 9, Thang cited Vietnam ’s political stability, abundant labour force, favourable investment environment and improved infrastructure as its advantages, compared to other countries in the region.

Until 2010, projects in oil refining, mining, and real estate will still be investors’ priorities, Thang said.

Contrary to the low-registered FDI, the department set a goal of 11-12 billion USD in FDI disbursement, the same as in 2008.

This unchanged objective is attributable to investors’ high levels of commitment, effective implementation of foreign-funded projects (relative to the global financial crisis) and the Government’s determination to maintain economic growth.

The efforts of the Government, related agencies and local authorities in administrative reforms and improvements in the investment environment infrastructure and regulations related to foreign investment, have helped Vietnam to achieve remarkable FDI attraction in the last two years, according to Thang.

The department’s statistics reveal that investors in 84 countries and territories are currently supporting 9,800 current projects in the country, with a total registered capital of nearly 150 billion USD.

In 2007 and 2008, the total registered FDI capital reached 85 billion USD, doubling the accumulated amount of the previous 19 years.

The disbursed FDI capital in 2008 hit a record of 11.5 billion USD, a year-on-year increase of 43 percent, and 2.8 times more than 2006.

Last year, over 4,000 FDI enterprises made a contribution of 16.5 percent to the GDP, and 28.9 percent to the total investment capital, compared to 15.9 percent and 16.2 percent, respectively, in 2006. The foreign-invested sector generated nearly 1.47 million jobs.

To maintain this growth rate, Nguyen Thanh Bien, Deputy Minister of Industry and Trade said trade promotion and the investment environment should be further improved.