Vietnam targets US$20 billion in FDI next year

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SaigonTimes English - 51 month(s) ago 8 readings

Vietnam targets US$20 billion in FDI next year

HANOI, HCMC - Vietnam has set a target of attracting US$20 billion in foreign direct investment (FDI) in 2011 compared to an estimated figure of US$18.6 billion for the current year.

Vietnam targets US$20 billion in FDI next year

By Van Oanh and Quoc Hung - The Saigon Times Daily

The plan of Malaysian firm Berjaya's Financial Center that is slated to get off the ground in 2011. Vietnam is looking to attract US$20 billion in FDI in 2011, up from US$18.6 billion in 2010 - Photo: Quoc Hung HANOI, HCMC - Vietnam has set a target of attracting US$20 billion in foreign direct investment (FDI) in 2011 compared to an estimated figure of US$18.6 billion for the current year.

Speaking at a press conference in Hanoi yesterday on the 2010 FDI attraction and the target for next year, Deputy Minister of Planning and Investment Dang Duy Dong said FDI disbursement would rise to US$11.5 billion next year from this year’s US$11 billion.

Next year the country will prioritize the qualitative rather than the quantitative approach, Dong said. FDI attraction will be screened more strictly, with priority to be given to infrastructure and hi-tech projects and those that can turn out products of high competitiveness, he said.

He noted authorities would be more careful in weighing and licensing big projects, especially those occupying large areas of land and consuming much power, which may adversely affect the environment, such as mining projects.

This year, foreign-invested projects have disbursed US$11 billion, up 10% from a year earlier, Dong said. Over the past 12 months, foreign investors have registered capital of nearly US$18.6 billion, which is nearly 18% lower than last year’s figure.

But, he said, the result proves the investment environment in the country is still attractive to foreign investors, especially in a year full of difficulties triggered by the global economic crisis.

Processing and manufacturing drew the largest amount of FDI capital with 385 new projects worth more than US$4 billion, plus some US$1 billion injected into 199 operational projects. The sector accounts for more than 27% of the total investment capital this year.

Dong said the processing and manufacturing sectors had attracted foreign investors in recent years and the trend could continue next year. In 2010, FDI enterprises paid US$3.1 billion in taxes, up 26% year-on-year.

This year, the foreign-invested sector’s exports (including oil and gas) are estimated to reach US$38.8 billion, increasing 27.8% year-on-year and making up 53.1% of the country’s total export value.

Excluding crude oil, the sector’s exports have amounted to US$33.9 billion, making up 46% of the nation’s total and increasing by 40.1% from the same period last year.

The foreign-invested sector’s imports have grown 39.9% to US$36.5 billion, 42.8% of the country’s total.

As of the end of December, the country had had more than 12,200 valid FDI projects with total registered capital of US$192.9 billion.

Do Nhat Hoang, head of the Foreign Investment Agency under the Ministry of Planning and Investment, said that in 2010 Vietnamese companies had got approval to implement 107 projects in foreign countries and territories with total capital of US$3 billion.

Next year, Vietnamese companies are predicted to invest some US$2 billion abroad.

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