ASIA NEWS NETWORK
WE KNOW ASIA BETTER
Vietnam's FDI exceeds annual target
Publication Date : 23-09-2013
The volume of foreign direct investment (FDI) registered for Vietnam has exceeded the year's target, but the country's FDI mobilisation still faces many problems ahead.
Early this year, the Ministry of Planning and Investment (MPI) estimated this year's registered FDI capital to be US$13-14 billion, compared to the $13.01 billion of last year.
However, figures released by MPI's Foreign Investment Agency revealed that FDI poured into Vietnam from between January 1 and August 20 amounted to $12.63 billion, a year-on-year increase of 19.5 per cent.
According to the Thoi Bao Kinh Te Sai Gon (Saigon Economic Times) news magazine, newly licensed FDI projects across the country have brought total registered FDI capital to over $14.4 billion, higher than the year's target set by the ministry.
In addition, new projects licensed in other provinces in September have yet to be included.
There are still more than three months to go and FDI is forecast to increase more strongly, meaning the year's total FDI amount will be much higher than the target.
Despite high FDI mobilisation so far, the domestic investment environment is not as competitive as countries in the region.
MPI Minister Bui Quang Vinh has said that Vietnam was becoming more selective about FDI as the country now prefers to have environmentally friendly projects with high technology and high added value.
Attracting FDI has become more problematic as infrastructure in Vietnam is still not good enough and administrative procedures have not improved much, according to Vinh.