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Eight-month FDI Reaches US$8.3 Billion
20 | 09 | 2007
The Foreign Investment Department of the Planning and Investment Ministry said that in the first eight months of 2007, foreign direct investment (FDI) in Vietnam, including both the capital of new projects and capital increases of those already established, totaled US$8.32 billion, an increase of 39.8 percent over the first eight months of 2006.

Statistics show that in August, investment certificates were granted to 97 FDI projects with total registered capital of US$733 million. Thus, in the first eight months of 2007, a total of 814 FDI projects were licensed with US$7.1 billion in total investment capital, 16 percent more projects and 64.6 percent more capital than in the first eight months of 2006.

In August, 51 FDI projects were allowed to increase their registered investment capital by a total of US$118 million. Thus, in the first eight months of 2007, as many as 247 FDI projects were allowed to increase their capital by US$1.22 billion. This is a fall of 39.6 percent in number of projects and 25.5 percent in capital increase compared with the first eight months of 2006.

FDI capital in Vietnam in the first eight months of 2007 averaged more than US$1 billion per month, up nearly 40 percent compared with the first eight months of 2006. Of the total, 533 projects were industrial, 241 in services, and 40 in agriculture, forestry and the fishery. This does indicate an increase in FDI in the service sector.

At the top of the list of countries/territories that had investment projects in Vietnam in the first eight months of 2007 was South Korea with 238 projects capitalized at US$1.7 billion. The second position belonged to Singapore with 50 projects involving US$1.33 billion. British Virgin Islands ranked third with 30 projects with US$861 million.

Ba Ria - Vung Tau province was the big FDI attractor, with more than US$1 billion (17 projects), followed by Hanoi, with US$860 million (124 projects), Ho Chi Minh City at US$769 million (158 projects), and Hau Giang with US$630 million (2 projects).

The Foreign Investment Department said that in the first eight months of 2007 nearly US$3 billion in FDI materialized, 20 percent more than in the first eight months of 2006.

The Foreign Investment Department said that in the remaining months of 2007 and in early 2008, many large-scale FDI projects will be carried out in Vietnam. Phan Huu Thang, the department director, said that foreign investors are discussing 50 projects worth US$50 billion with various officials. Some of those projects, to be capitalized with more than US$1 billion each, are in high technology, electricity, oil refinery, and services. Mr. Thang said that Vietnam is attracting new foreign investors while keeping those now present. Vietnam needs the above mentioned FDI projects to materialize.

The Ministry of Planning and Investment has established a specialized workgroup that is to help foreign investors carry out large-scale investment projects in Vietnam and help local authorities deal with the investment certification process as well as general implementation of FDI projects.

There are now Vietnamese trade promotion offices in Washington DC (USA) and Taiwan and, sometime this year, trade promotion offices are to be opened in Japan, South Korea, Singapore, San Francisco (USA), and in the Middle East. The Ministry of Planning and Investment and the Ministry of Foreign Affairs have worked together and have agreed to standards that will apply to the operation of Vietnamese trade promotion offices abroad.



Vietnam Economic News Online
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