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FDI tops
US$3 billion
Vietnam's efforts to improve its investment climate have paid off with
foreign direct investment (FDI) in 2001 surging to more than US$3
billion.
A report by the Ministry of Planning and Investment says foreign
investment capital in 2001 surpassed target by US$200 million to US$3.02
billion, an increase of 25.8% from 2000 (US$2.1 billion). The figure
includes US$2.44 billion of 460 fresh projects and US$580 million in
capital increase of 210 established projects. Also, total realized
capital reached US$2.3 billion, up 3% on 2000. Foreign-invested projects
earned US$7.4 billion in sales, up 6%; exports reached US$4.7 billion,
up 8%; and tax payment US$373 million, up 15%.
The investment structure also experienced positive changes. Industry and
construction attracted 373 projects worth US$2.07 billion (84.8% of
total registered capital). Agriculture saw 20 projects totaling US$25.3
million (1% of total capital) and services 37 projects worth US$345
million (14%).
Ba Ria-Vung Tau Province was the top FDI attraction with four projects
worth US$834.8 million, followed by HCM City (162 projects worth US$533
million). In terms of projects, the top foreign investor was Taiwan with
128 projects, followed by South Korea, China, Japan, the U.S. and
Singapore. In terms of capital, Holland was the top investor with
US$577.8 million, followed by Taiwan, France, Singapore, Japan and the
U.S.
Last year also saw 68 FDI projects totaling US$1.35 billion dissolved.
Major projects include Hoan Cau Cement (US$260 mil.), Total Asphalt
(US$199 mil.) and Nissan Automobile (US$110 mil.).
The increase in foreign investment last year was attributed to the
amended foreign investment law, the Vietnam-U.S. trade agreement and
Vietnam's economic and political stability.
Vietnam currently has more than 3,000 foreign-invested projects with a
total registered capital of nearly US$40 billion.
Plan to lure more foreign investment
The Ministry of Planning and Investment (MPI) is drafting a master plan
aimed to open the door wider to foreign investors to promote foreign
investment inflow.
A ministry official says the draft will seek to ease the regulations on
conditional investment in some sectors that require businesses to post
definite export ratios. It will also scrutinize the current regulations
on sectors which have just been opened to foreign investors on a pilot
basis such as supermarkets, house trading, horse racing, casinos and
insurance. The draft will propose no more licensing of new projects in
areas such as construction steel, cement, build-operate-transfer power
plants, beverage production without using local materials and assembling
bicycles for local sales. It will also contain measures to open up trade,
tourism and service sectors wider to foreign investors in line with
Vietnam's integration commitments.
A total of 460 FDI projects with a combined capital of US$2.44 billion
were licensed in Vietnam last year. Europe was the largest investor with
47 projects worth US$1.08 billion, followed by East Asia with 298
projects worth US$826 million and Southeast Asia with 47 projects worth
US$332.3 million. The U.S. had 23 projects worth US$112.2 million.
Foreign investment in 2001
| Sector |
Number
ofprojects (US$ mil.) |
Investment
capital |
| Heavy industry |
141 |
1,531
|
Light industry
|
191 |
349 |
Food
|
34 |
177.6 |
Agro-forestry
|
15 |
20.6 |
Hotel-tourism
|
4 |
10 |
Office leasing
|
2 |
3.2 |
Service
|
38 |
23.7 |
Transport-post
|
4 |
231.45 |
Construction
|
7 |
8.2 |
Culture, health
& education
|
17 |
50.9 |
Fisheries
|
5 |
4.65 |
| IP, EPZ
construction |
? |
25.7 |
|