Addressing the passivity of managers inattracting FDI and balancing investment structure are measures Vietnamneeds to implement immediately to maintain FDI inflows and reach anexpected growth of investment.
Vietnam saw a fairly good start in FDI attraction in Januarywith 40 projects being licensed with a total registered capital of over285 million USD, an increase of 78.2 percent over the same period lastyear. With this result, many economic analysts showed their optimismabout this year’s FDI growth.
However, FDI inflows were put a hold in February, resulting in thetotal newly-registered and added FDI standing at only 1.78 billion USDin the first two months of this year, equivalent to 27.3 percent of theyear-on-year figure.
The country also faces difficulties in targeting FDI inflows toimportant sectors such as supporting industries, human resourcedevelopment, agricultural product processing, high valued addedservices, energy-saving industries and sectors with large exportproportion. It is reflected by a majority of projects of over 100million USD poured into real estate.
In addition, many managers tend to wait for projects instead ofactively seeking investors or making specific investment attractionplans for each economic area and each locality.
Vietnam sets a target of attracting around 22 billion USD innewly registered FDI and disbursing between 10-11 billion USD in 2010.
To that end, experts said that the country needs to improveinvestment promotion quality, target investment attraction totrans-national groups and give priority to technological transfer andenvironmentally-friendly projects.
Surveying investors’ capacity should be considered an essential phasein FDI appraisal in order to avoid “dead” projects./.
Vietnam saw a fairly good start in FDI attraction in Januarywith 40 projects being licensed with a total registered capital of over285 million USD, an increase of 78.2 percent over the same period lastyear. With this result, many economic analysts showed their optimismabout this year’s FDI growth.
However, FDI inflows were put a hold in February, resulting in thetotal newly-registered and added FDI standing at only 1.78 billion USDin the first two months of this year, equivalent to 27.3 percent of theyear-on-year figure.
The country also faces difficulties in targeting FDI inflows toimportant sectors such as supporting industries, human resourcedevelopment, agricultural product processing, high valued addedservices, energy-saving industries and sectors with large exportproportion. It is reflected by a majority of projects of over 100million USD poured into real estate.
In addition, many managers tend to wait for projects instead ofactively seeking investors or making specific investment attractionplans for each economic area and each locality.
Vietnam sets a target of attracting around 22 billion USD innewly registered FDI and disbursing between 10-11 billion USD in 2010.
To that end, experts said that the country needs to improveinvestment promotion quality, target investment attraction totrans-national groups and give priority to technological transfer andenvironmentally-friendly projects.
Surveying investors’ capacity should be considered an essential phasein FDI appraisal in order to avoid “dead” projects./.
