FDI investment could reach US$65-67b in 2008
10-OCT-2008 Intellasia | Lao Dong
Oct 10, 2008 - 7:00:00 AM
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Despite instabilities in the domestic and the world markets, the FDI inflow into Vietnam could reach US$62 billion this year according to the experts.
Le Buu Quang Huy, vice head and director of Central Investment Promotion Centre said at a press meeting on October 7, prior to the year end conference scheduled on October 10 in HCM City, that during the first nine months of 2008, the country attracted 885 FDI projects with the total registered capital of approximately US$57.1 billion. Of which, 609 projects worth over US$43 billion were in the central and southern region (from Thua Thien Hue province to Ca Mau), accounting for 71% of total registered FDI capital. Vietnam is expected to attract approximately US$65-67 billion in 2008.
In 2006, the world recorded US$1.036 trillion of FDI, but only 20% of the amount was invested in developing countries (US$67 billion dong invested in China, which accounted for 2% of China's GDP). Vietnam received FDI worth US$65-67 billion close to the economy's GDP.
According to Huy, some years ago, the number of US$1 billion projects was rare but since 2007, number of huge projects worth several billions of US dollar have been registered and carried out. Some of them are US$6 billion oil refinery project in Ba Ria Vung Tau province, a US$4.3 billion project in Phu Yen and a US$9.793 billion steel project in the Binh Thuan province.
However, it remains to be seen when the FDI capital is actually transferred into Vietnam or disbursed. In 2008, the Ministry of Planning and Investment held a meeting to check and supervise huge FDI projects and to detect and solve difficulties in order to speed up FDI disbursement, Huy reported.
Some of the problems that local governances usually face leading to the delayed disbursement of FDI are delay in clearance, weak infrastructure, shortage of human resources, non-synchronic legislation lobby and complex investment procedures.
Vietnam should also revoke ineffective projects and reject environmentally harmful projects, Huy proposed.
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