|A corner of a children's playground at the Gamuda City apartment project invested by Malaysian Gamuda Berhad in Hoang Mai District in Ha Noi. Since the Foreign Investment Law was passed in 1987, Viet Nam's construction sector has received US$11.5 billion from nearly 2,000 FDI projects. — Photo gamudacity.com.vn
HA NOI (VNS) – Since the Foreign Investment Law was passed in 1987, Viet Nam's construction sector has received US$11.5 billion for 1,196 foreign direct investment (FDI) projects. The law was passed a year after Doi Moi (Renewal) policy was announced in 1986.
The sector has come third in attracting FDI capital nationwide, accounting for 6.5 per cent of the projects and 4.5 per cent of investment capital.
The average capital for a construction project in the 29 years since 1987 has been $9.64 million, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
South Korea was the leader with 587 projects, worth $2.4 billion. This accounted for 49 per cent of the nation's total construction projects and 20.9 per cent of investment capital.
Singapore ranked second with 101 projects totalling $1.9 billion, followed by Taiwan with 109 projects worth $1.5 billion.
Other large foreign construction investors included Japan, Malaysia, British Virgin Islands and Hong Kong.
HCM City was the city that attracted the most FDI for construction. It has more than 377 projects and $3 billion investment capital, accounting for 31.5 per cent of projects and 26.5 per cent of investment capital.
Ha Noi was second, attracting $2 billion in capital for 527 projects, accounting for 44 per cent of projects and 17 per cent of investment capital.
The northern city of Hai Phong was third with 18 projects and $1 billion in capital, accounting for 1.5 per cent of projects and 9 per cent of investment capital.
Other provinces involved included the southern province of Ba Ria - Vung Tau, Binh Duong, Dong Nai and the northern province of Quang Ninh.
In term of investment forms, 49 per cent of construction projects in Viet Nam are 100 per cent foreign invested projects, 43 per cent are joint ventures, and the rest involve joint stock companies and business co-operation contracts.
The capital inflow was expected to rise in the near future as new open economic policies take effect, especially the revision of laws involving construction, investment and enterprises, said FIA.
These revisions would create more favourable conditions for foreign investors to join Vietnamese construction and real estate market, added the agency. — VNS