Based on foreign direct investment attraction results for the first nine months this year, the foreign investment department under the Ministry of Planning and Investment has released a positive forecast that FDI flows of the year will exceed the planned target with US$3.35 billion
According to the FDI department, it has received 44 applications for licensing with total of registered capital of US$2.2 billion. Meanwhile, the total registered capital of 860 new projects and the existing foreign projects requesting supplementary capital during the first past nine months has reached over US$2.97 billion, increasing over 41% compared to the same period of 2003, of which registered capital of 518 new projects is more than US$1.6 billion.
The improvement of FDI inflows has been also reflected by the boost in realised FDI. In the past three quarters, actualised FDI was US$2.15 billion, rising by nearly 5% compared to the year-earlier period.
The department also said that after nearly 17 years of implementing the Foreign Investment Law, to the end of September of 2004, there are nearly 5.000 valid FDI projects with total approved capital of over US$44.7 billion. Asia accounts for 70%, Europe nearly 24%, the US 2.7%, the other regions: remaining source. Singapore, Taiwan, Japan, South Korea and Hong Kong are taking respectively leading roles among 66 countries and territories making investments into Vietnam,
However, the FDI has been mainly poured into the main economic zones including HCM City, Hanoi, Dong Nai, Binh Duong, Ba Ria-Vung Tau, Hai Phong. FDI in the southern economic hub which comprises HCM City, Dong Nai, Binh Duong and Ba Ria-Vung Tau accounted for 55.7% of total FDI approvals nationwide.
The northern economic zone comprising Hanoi, Hai Phong, Hai Duong, Vinh Phuc and Quang Ninh accounted for 24.2% of FDI. Industrial parks (IP) and export processing zones (EPZ) accounted for 33% of FDI in terms project numbers and 29.8% in terms of total registered investment capital.