FDI exceeds annual national target
The volume of registered foreign direct investment (FDI) in Vietnam has exceeded the year’s target, but the country’s FDI mobilisation still faces problems ahead.
The Ministry of Planning and Investment (MPI) estimated this year’s registered FDI capital to be US$13-14 billion, compared t last year’s US$13.01 billion.
However, figures released by MPI’s Foreign Investment Agency revealed that FDI poured into Vietnam between January 1 and August 20 amounted to US$12.63 billion, a year-on-year increase of 19.5 percent.
The Saigon Economic Times reported newly licensed FDI projects across the country have brought total registered FDI capital to over US$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, the domestic investment environment is not as competitive as countries in the region,
MPI Minister Bui Quang Vinh has said Vietnam is becoming 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.