Jan. 20 – The Ministry of Planning and Investment is forecasting that FDI to Vietnam will rise by 10 percent to US$22-US$25 billion given the slowly recovering world economy.
According to the Foreign Investment Agency (FIA), there were a total of 839 FDI projects implemented in the country amounting to US$21.48 billion by December 15, 2009. Total FDI for 2009 was only equal to 30 percent FDI during the previous year although the disbursed capital was equal to 87 percent of that in 2008.
FIA deputy director, Bui Quoc Trung, told Vietnam Net that only 43 out of 89 countries which used to invest in Vietnam brought in new investment projects for 2009. The country’s leading foreign investor is the United States followed by Taiwan, South Korea, Japan and Singapore.
Ho Chi Minh City remains the top destination for FDI in the country with US$27.2 billion worth investments registered last year. Other attractive investment destinations include Hanoi, Dong Nai and Binh Duong provinces.
Vietnam’s poor infrastructure and ambiguous legal framework are just some of the issues that investors find discouraging. “If Vietnam can settle these problems well, it will be able to receive US$22- US$25 billion worth of committed investment, while the disbursement sum may reach US$11 billion,” Trung added.