(VEN) – Increased capital of foreign direct investment (FDI) projects in Vietnam has considerably improved in recent years; this is a positive signal and trend that needs to be maintained and developed, Ministry of Planning and Investment’s Foreign Investment Agency (FIA) former Director Phan Huu Thang told the Vietnam Economic News.
In recent years, while newly registered FDI capital in Vietnam decreased or increased slightly, additional capital for ongoing FDI projects in the country increased strongly. What is your assessment of this trend?
That’s true. The following table, featuring FDI attraction from 2010 to July 2013, shows that the additional capital of existing FDI projects in Vietnam strongly increased. This is a positive signal and trend that needs to be maintained and developed. (See table)
I think that newly registered FDI decreased or increased slightly partially because of ineffective investment promotion and attempts to attract investment in fields in which investors do not want to invest. We need to change the way we do in investment promotion, including provision of assistance for licensed projects in solving problems and developing production and trading activities.
FDI increased considerably in the first months of 2013. Some have said that this is because of increased investor trust in the Vietnamese market. What do you think about that?
FDI attraction is a long process whose results depend on different factors and need to be assessed comprehensively and from different angles. The FDI sector’s economic efficiency and impact on industries and localities should be evaluated first to see if investor’s trust in Vietnam increased or not. FDI data of the first months of 2013 alone doesn’t prove that investor trust in the Vietnamese market increased.
In the first seven months of 2013, Vietnam attracted US$11.91 billion, up 19.6 percent from the same time last year. This is an acceptable increase in the context of global economic recession.
|According to Ministry of Planning and Investment’s Foreign Investment Agency (FIA) former Director Phan Huu Thang, Vietnam attracted US$11.91 billion in FDI in the first seven months of 2013, accounting for 91.5 percent of the 2013 target of US$13.013 billion. /.|
What do you think about FDI attraction in 2013?
Registered FDI attracted in the first seven months of 2013 accounted for more than 90 percent of that in 2012, while localities are assessing large FDI projects before licensing them in the remaining months of this year. Hence, 2013 FDI is expected to exceed that in 2012.