Chuck Kuhn's Asia in Photos: Viet Nation draws 5.4 billion USD in FDI

Wednesday, March 26, 2008

Viet Nation draws 5.4 billion USD in FDI

The Nation has attracted 5.436 billion USD in foreign direct investment (FDI) so far this year, 31 percent more than the same period last year, according to a report by the Foreign Investment Agency under the Ministry of Planning and Investment.

Seventy-five foreign-invested projects worth a cumulative 2.63 billion USD received licences in March, bringing the total number of licensed projects in Vietnam so far this year to 147, capitalised at over 5.15 billion USD. The figures reflected a year-on-year decline of 64 percent in the number of projects, but marked a 43 percent growth in investment capital. March also saw 49 projects raise their investment capital by a combined 280 million USD, the report says. The surge in FDI was due to a series of large-scale projects: a 1.3 billion USD five star hotel and entertainment complex being built by the US Good Choice Group; a 930 million USD Vietnam Financial Centre being developed by Berjaya Leisure (Cayman ) Ltd, a subsidiary of the Malaysian group Berjaya Land Bhd; and a 610 million USD human resource, software development and office rental project by three Japanese investors. Over 4.6 billion USD in FDI continues to pour into the service sector, accounting for 90 percent of total FDI in the first quarter of the year, the remainder going into industry and agro-forestry-fisheries sectors. Of all the countries and territories investing in Vietnam , the US was the biggest with eight projects worth 1.31 billion USD, making up 26 percent of the total. Malaysia followed in second with four projects valued at 1.26 billion USD, accounting for 25 percent of the total. Foreign-invested enterprises were expected to post revenue of 7.6 billion USD till the end of March, an increase of 27 percent year-on-year. Employment figures were also satisfactory with the total number of workers employed by foreign-invested firms rising by 13 percent to 1.17 million.
A proposal to speed up the disbursement rate of foreign direct investment (FDI) capital is being considered by the Ministry of Planning and Investment (MPI). With the number of projects and registered capital on the increase, especially since Viet Nam joined the World Trade Organisation, it is hoped the scheme will break slow FDI disbursement. Foreign Investment Department (FID) Head, Phan Huu Thang said the proposal classifies and puts forward assistance policies suitable to projects in each locality, with priorities given to key ones that have great impact on localities and regions. According to the MoPI, 43 billion USD in FDI was disbursed during 1988-2007, accounting for 52.2 percent of the total registered capital. The slow disbursement rate was attributed to land compensation and ground clearance, Thang said. According to a recent survey of 140 FDI enterprises conducted by the Central Economic Management Research Institute, 20 percent said the reason for their slow disbursement was due to changes in Vietnam ’s policies, and 17 percent said it was due to difficulties in procedures and administration. Another 17 percent said their slow disbursement was because the investment environment was not as favourable as they had first thought, and the remaining said it was due to the holding companies’ change in business strategies. FDI’s Head Thang said Viet Nam is striving to assist the disbursement of more than 7 billion USD this year, 2 billion USD more than last year’s figure. In a press briefing held at the end of last year, Minister of Planning and Investment Vo Hong Phuc said that speeding up the disbursement rate is a key ministry task in 2008 alongside selecting investment projects to benefit economic development. As a result, the ministry only set a modest target of attracting 15 billion USD in FDI, 5 billion USD less than last year’s figure. Thang said the international community shows a keen interest in Vietnam , adding there are more and more large-scaled foreign invested projects in the nation. Vietnam attracted 5.43 billion USD and disbursed 1.68 billion USD in the first quarter of this year, a year-on-year rise of 24 percent

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They say "

“I can’t say what made me fall in love with Vietnam - that a woman’s voice can drug you; that everything is so intense. The colors, the taste, even the rain. Nothing like the filthy rain in London. They say whatever you’re looking for, you will find here. They say you come to Vietnam and you understand a lot in a few minutes, but the rest has got to be lived. The smell: that’s the first thing that hits you, promising everything in exchange for your soul. And the heat. Your shirt is straightaway a rag. You can hardly remember your name, or what you came to escape from. But at night, there’s a breeze. The river is beautiful. You could be forgiven for thinking there was no war; that the gunshots were fireworks; that only pleasure matters. A pipe of opium, or the touch of a girl who might tell you she loves you. And then, something happens, as you knew it would. And nothing can ever be the same again.”
― Graham Greene, The Quiet American

Tips on Travel to Vietnam

It's always warm in Southeast Asia apart from high mountains, so leave the heavy clothing at home. Cotton and breathable fabrics are always better than synthetics -- although cotton does wrinkle a lot when traveling! December through April is roughly the dry season in that region, although it can still rain a little. December is a good time to go in terms of temperature -- cooler than in the humid summertime. Either way, wearing more clothing (shirt sleeves and long pants) is always more respectful towards the Asian culture, especially when visiting temples and rural areas.