The FDI sector attracted nearly 22 billion USD and achieved a trade surplus of nearly 13.9 billion USD, significantly contributing to the development of Vietnam’s economy in 2013. However, it would have contributed more if shortcomings in FDI attraction and disbursement had been improved. Report by the Vietnam Economic News on January 23.

More contributions

According to the Foreign Investment Agency (the Ministry of Planning and Investment), in 2013, Vietnam attracted more than 12,000 new FDI projects and nearly 500 projects added its capital with total newly registered and added capital of nearly 22 billion USD, an increase of 69 percent compared to 13.013 billion USD in 2012. This mark an increase of 57 percent over the target of 13-14 billion USD set out by the agency.

General Statistics Office Director Nguyen Bich Lam said a strong increase in FDI helped total social investment capital in 2013 reach about 30.44 percent of the GDP, an increase of 7 percent compared to 2012.

Together with FDI attraction, disbursement in 2013 reached 11.5 billion USD, an increase of 9.9 percent compared to 2012, higher than an increase of 7.3 percent and 5.6 percent in the state and non-state sectors respectively.

Not only significantly contributing to the economy through attraction and disbursement, the FDI sector also contributed to Vietnam’s economy in 2013 through export-import activities.

Lam said that Vietnam’s export growth in 2013 greatly depended on the FDI sector.

Five solution groups

Minister Bui Quang Vinh said that in the context of the global economic crisis and domestic difficulties, the FDI sector significantly contributed to an increase in total social investment capital and import-export activities. This was a success of Vietnam.

However, the sector would have been able to contribute more if shortcomings in FDI attraction and disbursement had been improved, reflecting through the weakness of the infrastructure system, poor quality human resources, undeveloped support industries, unimproved institutional issues, inconsistent policies and complicated administrative procedures. These shortcomings were confirmed by Vinh.

The ministry has launched five solution groups to do away with those shortcomings, including perfecting the legal system related to FDI attraction towards consistency, openness, transparency, predictability; adjusting some principles in investment; completing criteria for granting investment licenses; renewing investment promotion activities; and strengthening inspection and supervision of investment activities. It has also sought ways to create favourable conditions for foreign-invested enterprises in order to resolve difficulties on a timely basis.-VNA