Vietnam - Vietnam remains attractive destination for global investors: Japanese press

Japanese press has selected Vietnam to be the most attractive investment destination for opening production facilities, beyond India and Thailand.

In terms of consumer market, Vietnam ranked the third after India and Indonesia.

2011 FDI Jump

The Foreign Investment Agency under Ministry of Planning and Investment reported that total newly licensed and increased FDI capital in Vietnam has reached $14.7 billion, equaling to 74% against 2010.

Although the newly registered capital of $11.6 billion was equivalent with 65% of 2010 but there were positive changes. This year’s FDI projects mostly are invested in industry and construction (making up 76.4% against 2010’s 54.1%). Meanwhile, the real estate trading accounted for only 5.8% of registered FDI amount, much lower than 34.3% recorded in last year.

In addition, the increased FDI capital also surged 1.65 times year on year to $3.1 billion, which showed that foreign investors remain optimistic on Vietnam’s investment and business environment.

Especially, 2011 actualized FDI of Vietnam is expected at the same $11 billion as 2010, which contributes 25.9% to total social investment.

According to international organizations, Vietnam remains the attractive destination of global investors. World Investment Prospects Survey (WIPS) 2010-2012 of United Nations Conference on Trade and Development (UNCTAD) indicated that Vietnam jumped 3 grades.

In details, Vietnam ranked the first in ASEAN in terms of FDI attractiveness and was one of top ten attractive economies for foreign investors, especially for Japanese investments and developing countries.

Japanese investors still see Vietnam as a very attractive investment address, according to the survey of the Japan External Trade Organization (JETRO) over processing companies.

Meanwhile, Nikkei business times reported, Vietnam was chosen to be the most attractive destination to open production facilities, above India and Thailand.

License for big projects decreasing

Notably in 2011, the investment licensing for large and very big projects (especially real estate projects) decreased clearly.

In 2008, when Vietnam attracted total $71.7 billion, there were up to eleven licensed projects capitalized at over $1 billion each. The number of 2011 was 2 projects only.

Moreover, large FDI projects in 2011 are in fields of industry, namely Jak Hai Duong BOT power plant with pledged capital size of $2.26 billion, First Solar production project worth over $1 billion in HCM City.

VietBiz24

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