Effectiveness of FDI in Vietnam is to be raised
09:03, Thứ Tư, 15/2/2012
Vietnam has opened its door to attract foreign direct investment for many years now. FDI capital has played an increasingly important role, becoming a motive force to push ahead the growth of the country’s economy. The consolidation and raising of the effectiveness of the FDI capital flow into Vietnam is one of the important tasks of the current situation.
Vietnam’s economy has in recent time been greatly influenced by the world’s economic downturn. However, with great, constant efforts, FDI has in recent time recorded encouraging achievements.
The latest report of the Foreign Investment Department under the Ministry of Planning and Investment shows that up to now Vietnam has got 13,667 effective investment projects with the total registered capital of USD 198 billion, in which industry and construction projects have accounted for 54%. In 2011, FDI capital having flown into Vietnam saw an impressive increase. The new registered and added capital in Vietnam reached USD 14.7 billion; the new registered capital reached USD 11.6 billion; the realized FDI capital in Vietnam was put at USD 11 billion, making a contribution of 25.9% to the total investment capital of the whole society in 2011. This is one of the sources of important added capital for investment and development.
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The prominent results in 2011 will continue to give an impetus to the attraction of FDI capital in 2012. However, in January 2012, FDI attraction saw a slight reduction with only USD 37.3 million gained, as much as 2.5% of the same time last year; the realized capital was put at USD 400 million, a 4.8% reduction as against last year. Also in January, new investment licenses were granted to 12 provinces and cities, in which USD 13 million as registered capital went to Ho Chi Minh City, accounting for 44.2% of the total registered capital of the new licenses.
As reported by the Foreign Investment Department, the reason for the decline in attracting FDI is that this time was coincidental with the time off for the Lunar New Year with the working days reduced considerably. However, according to the appraisal of the WIPS under the UNCTAD, Vietnam remains an investment attraction in the world, ranking first in ASEAN in terms of attraction of FDI.
With the target of FDI registered capital in 2012 being attracted with USD 15 billion to USD 16 billion and disbursed capital with USD 10 billion to USD 11 billion, more attention will be paid to the quality and effectiveness of FDI capital together with the improvement of the State management and the perfection of the mechanism of the State management of FDI.
On the other hand, importance will be attached to focusing more on enhancing the FDI capital disbursement than on the quantity of the registered capital. At the same time there should be a selection and orientation of attracting FDI in the infrastructure and friendly environmental “green” industry, in the support industry, the high technology and the human resource training areas. Attraction of FDI in the non-production area will be limited.
In face of the difficulties of the world’s current economy, the successes in attracting FDI have been making great contributions to development of the country’s economy. It is hoped that in 2012, attraction of FDI will continue to obtain good results, contributing to raising the quality, effectiveness and competitiveness of the country’s economy./.