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Investment
Aug 01, 2017 / 16:02

New prospects for attracting FDI

Tram Anh - Ngoc Thuy

In the first senven months of 2017, FDI including newly registered capital, capital increase or equity investment has amounted to 21.93 billion USD, an increase of 52% in comparison to the same period of 2016. Up until July, 122 nations and territories have invested in Vietnam. The new foreign investment projects focus mostly on manufacturing and real estate business.

Financial institutions and foreign investor association continue to rate Vietnam among the world most attractive investment destinations.
 
Printers production at Canon Vietnam Ltd.
Printers production at Canon Vietnam Ltd.
The prospect of attracting FDI continues to be optimistic as many financial institutions and associations of foreign investment enterprises are evaluating Vietnam as an attractive investment destination. The World Bank update on Vietnam's economic outlook released  in the first half of 2017 highlighted  the Vietnamese external economic activities including  steady export growth and record FDI inflows. The Asian Development Bank (ADB) report also pointed out that Vietnam's main growth driver in 2017 - 2018 has been  foreign investment in manufacturing.
 
The recent foreign visits by Vietnamese Prime Minister Nguyen Xuan Phuc to the US, Japan, Europe, Cambodia and Laos with the signing of billion dollar investment deals are expected to trigger a wave of  investment in Vietnam.
 
The chairman of the foreign invested enterprises association Nguyen Mai is optimistic about foreign investment from now to 2020.  "We are receiving a new wave of FDI." he said.
However, "Vietnam needs to be better prepared and  create a favorable environment to welcome new waves of investment from other countries. This is a very important external source; combined internal resources,  I believe will serve effectively for the socio-economic development of our country in the future "- Prof. Nguyen Mai said.

One of the factors to attract and use effectively FDI in the coming time is to focus on perfecting the legal system, mechanisms and policies in line with the  international economic integration commitments.  It is also necessary to develop and effectively manage various types of markets (real estate, capital, services, labor, science and technology). Economists also suggested to concentrate resources in upgrading the infrastructure system and  developing  human resources in order to better meet the requirements of enterprises.

In July, two more investment projects have been registered in Hanoi under the form of BT (Build and Transfer) including the urban transport project and environmental project with a total investment of 5.6 trillion VND (equivalent to 246 million USD). Moreover, 301 FDI projects have been approved with the registered capital of 1,3 billion USD. As such, in July, Hanoi has attracted 98 projects with total registered capital of 3 billion USD. Currently, there are 128 ongoing projects under the form of PPP (Public – Private Partnership) with an estimated investment of 307 trillion VND (equivalent to 13,5 billion USD).

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