Foreign direct investment (FDI) disbursements will reach about $11 billion in 2012, signaling that Vietnam
remains a favourite venue for investors despite the country’s economic
slowdown.
The steady FDI disbursement sum
this year, however, could not dispel the challenges faced by foreign investors,
including concerns about labour, infrastructure and unsettled policies.
The Ministry of Planning and
Investment’s (MPI) Foreign Investment Agency reported that new FDI commitment
capital—as opposed to disbursements—this year to date has reached only $12
billion, a 21.4 per cent drop in commitments year-on-year.
Disbursed capital at FDI projects
was estimated at $10 billion from January to November 2012, according to the
statistics of Foreign Investment Agency.
“We received approximately $1
billion FDI disbursements on average every month, so I believe the total
disbursements will reach $11 billion this year, equivalent to the level of last
year,” said Dao Quang Thu, Vice Minister of Planning and Investment.
Thu emphasised that many foreign
investors continued to pump money into projects in Vietnam despite of the
decline in new investment commitments.
“This result reflects our effort
in supporting foreign investors by removing obstacles at FDI projects,” said
Thu.
According to an MPI report,
steady FDI disbursements have contributed significantly to sustain economic
growth, especially when the domestic private investors are struggling in fund
mobilisation and the Vietnamese government tightens fiscal policy to rein in
inflation.
“Given the investments of
transnational companies in Vietnam, I think the disbursements could be better
next years,” said Nguyen Mai, chairman of Vietnam Association for Foreign
Invested Enterprises.
Samsung Electronics last month
obtained an investment certificate for its expansion project worth $830 million
in northern Bac Ninh province, bringing its total investment in Vietnam to $1.5
billion.
In the year, Vietnam also
received investments from transnational companies such as Bridgestone, Nidec
Corporation, General Electric, Jabil Corporation and Sumitomo Corporation.
Do Nhat Hoang, director of
Foreign Investment Agency, said the decline of FDI commitments was a sign
reflecting the concerns of foreign investors over Vietnam’s slowing economic
growth, which is expected to grow around 5.2 per cent this year.
Hoang believed the concerns of
foreign investors would calm down as the Vietnamese government was implementing
many actions to improve the investment climate, such as amending the Investment
Law and offering more incentives to foreign investors.
According to a Global
Manufacturing Competitiveness Index report released by Deloitte Touche Tohmatsu
and the US Council on Competitiveness, Vietnam jumped from its current global
ranking of 18th to 10th.
The report is based on the
responses of more than 550 senior manufacturing executives worldwide to a
wide-ranging survey discussing the current business environment and
manufacturing sector global competitiveness.
Ninh Kieu | vir.com.vn
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