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VietNamNews

Foreign direct investment hit by international economic woes

Update: December, 25/2012 - 09:32

HA NOI (VNS)— Foreign direct investment (FDI) pledges into the country this year decreased 18 per cent to US$12.7 billion due to the global economic slowdown, according to the Ministry of Planning and Investment.

This amount includes $7.8 billion in registered capital for 1,097 new projects and $4.9 billion in additional registered capital for 406 existing projects.

This year's FDI inflow inched down by 5 per cent against last year to $10.5 billion.

Director of the ministry's Foreign Investment Agency Do Nhat Hoang said that FDI in manufacturing and processing sectors- the focal points of Viet Nam's FDI attraction policy, had increased remarkably this year.

According to the ministry, manufacturing and processing were the most attractive industries to foreign investors this year with a registered capital of $8.9 billion, accounting for 70 per cent of the country's total registered capital. Several large projects are taking shape in these industries, including an $870 million electronic components project supervised by Taiwan's Wintek and an $830 million mobile phone project for South Korea's Samsung.

The real estate industry followed closely behind with $1.8 billion, 14.5 per cent of the country's total registered capital.

The ministry reported that Japan remained the country's largest investor with total registered capital of more than $4 billion, followed by South Korea, Hong Kong and Singapore.

The southern province of Binh Duong was the most attractive destination to foreign investors this year with more than $1.63 billion, making up 20.9 per cent of the country's total registered capital. The northern city of Hai Phong, the capital city of Ha Noi and the southern province of Dong Nai followed with more than $1.11 billion, $618.8 million and $468.7 million, respectively.

Planning and Investment Minister Bui Quang Vinh said that the country's goal for FDI pledges next year would be $14-15 billion, of which $10-11 billion would be disbursed.

As the continuous global economic slowdown could affect the country's FDI attraction target, experts recommended that the country intensify administrative procedures to ease investors' spirits.

Human resource development, especially in the areas of science and technology, could also make the country more attractive to foreign investors, experts said. — VNS

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