US$50b fillip to 2008 FDI
06-SEP-2008 Intellasia | 04/Sep/2008 Thoi Bao Kinh Te Vietnam
Sep 6, 2008 - 7:00:00 AM
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The National Centre for Socio-economic Information and Forecast under the Ministry of Planning and Investment (MPI) has put forward optimistic forecasts on investment trend in Vietnam this year.
Accordingly, the country may attract over US$50 billion in foreign direct investment (FDI) with total actualised capital of over US$10 billion. Total signed official development assistance (ODA) is forecasted to reach US$3.107 billion. Total development investment capital of the whole society is expected to reach 584.8 trillion dong.
FDI has continuously reported all-time high levels and is considered a highlight of the economic picture from the start of this year. Statistics of MPI showed that newly licensed and increased FDI totalled US$47.158 billion in the first eight months. Among the total, 772 licensed projects had total registered capital of US$46.324 billion and 210 capital-increased projects had additional capital of US$833.6 million.
In August alone, the country had total 118 licensed projects with total registered investment capital of US$1.827 billion and 22 capital-increased projects reported additional US$45 million.
In August, total actualised FDI was US$1 billion, bringing total actualised FDI in the first eight months to US$7 billion.
Notably, FDI tended to shift from the service sector to the agriculture sector thanks to two super projects with total registered capital of US$14.097 billion, namely, the Hung Nghiep Formosa Steel Co with total capital of nearly US$7.9 billion invested by Taiwanese Formosa Group in Vung Anh, Ha Tinh province and joint venture between the Nghi Son Oil Refiner and corporations of Japan and Kuwait with total capital of US$6.2 billion in Thanh Hoa province.
However, according to the centre's experts, there remain many problems in capital actualisation, which requires further efforts in settling weaknesses in infrastructure, skilled human resources, particularly macro-policy stabilising measures and so on.
MPI said that many FDI pledged huge amount of capital however in fact, their actualisation rate was very low. Many investors committed huge capital in a bid to apply for land. MPI also warned provinces, cities should reconsider, recheck land appropriation projects.
Meanwhile, ODA is still an important investment capital for developing transport infrastructure, improving environment and others. The centre forecasted that total pledged ODA in late months is estimated at US$1.826 billion, of which loans would be US$1.299 billion and non-refundable aid US$527 million.
Thus, if there is no much change, total signed ODA this year will reach US$3.107 billion, of which loans will be US$2.515 billion, non-refundable aid US$529 million.
Normally, ODA projects are often actualised in the second half and may reach US$2.5 billion for the whole 2008.
According to estimations of the government, total development investment for the whole society this year will be 584.8 trillion dong, of which investment from the state budget will reach 84.8 trillion dong, accounting for 14.5%.
Therefore, the investment capital will be some 40.1% of GDP, nearly equal to the target figure of 42% set by the National Assembly.
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