Illustrative image (Source: VNA)
 
Hanoi (VNA) - Foreign direct investment (FDI) inflow to Vietnam is expected to increase in 2017, said Do Nhat Hoang, Director of the Foreign Investment Agency under the Ministry of Planning and Investment.

The most important task for Vietnam is to select projects proper for the country’s development plans, such as those in hi-tech industries and others using environment-friendly and energy-efficient technologies and equipment, he said.

Chairman of the Vietnam Association of Foreign Investment Enterprises Nguyen Mai agreed that an improvement would be seen in the FDI inflow to Vietnam this year.

He cited the agency’s statistics as saying that FDI disbursement in 2016 was estimated at 15.8 billion USD, a record high and up 9 percent year-on-year.

Newly-licensed projects and those raising levels of capital also increased by 27 percent and 51 percent, respectively, he said.

The association’s vice chairman Nguyen Van Toan emphasised the importance of breakthrough policies that could help the country attract more FDI in hi-tech industries.

Investment promotion activities should be targeted at countries and territories experienced in developing hi-tech industries, he said. 

The agency’s report revealed that up to 64 percent of FDI registered in the country in 2016 was pumped into manufacturing and processing while automobile and motorbike wholesale, retail and repair and real estate industries accounted for 8 percent and 7 percent of the nation’s total FDI, respectively.

The Republic of Korea remained Vietnam’s leading source of foreign investment with 7 billion USD (28.8 percent of the total). Japan came second with 2.58 billion USD (10.62 percent), and Singapore was third with 2.41 billion USD (9.9 percent).

HCM City led cities and provinces nationwide in attracting FDI, luring 3.42 billion USD (14 percent of the total). The northern port city of Hai Phong came next with 2.98 billion USD (12.26 percent). Hanoi, Binh Duong and Dong Nai followed with 2.79 billion USD, 2.36 billion USD and 2.23 billion USD, respectively.-VNA