Viet Nam is likely to achieve a new record in attracting foreign direct investment (FDI) in 2007, said representatives from several major international financial groups at the second Viet Nam Investment Forum, which opened in Ha Noi on Mar. 19.
"Attracting between 15-17 billion US$ in FDI each year is within the country's reach," said General Director of the Vina Capital Fund, Don Lam. He revealed the company's plan to invest
400mio US$ in building a complex of shopping centres and apartments for lease in Viet Nam.
Director General of the Dragon Capital Fund, Dominic Scriven, shared Lam's view, adding that a series of big investment projects will be implemented in Viet Nam in the near future, including a five billion US$ project of the HonHai Precision Industry Ltd. Company of Taiwan.
General Director of the Hong Kong and Shanghai Banking Corporation (HSBC), Michael Geoghegan, noted propitious conditions making Viet Nam an appealing destination to foreign investors, citing the country's young population and an abundant labour force with improved skills. Additionally, he said, Vietnamese people are quick to take to hi-tech services like the Internet and mobile phones.
Viet Nam's accession to the World Trade Organisation (WTO) would bring in new opportunities for the country's economy, particularly in the volume of FDI, added Geoghegan.
Participants at the forum agreed that how Viet Nam could maintain this capital flow is a challenge facing the country as many difficulties still remain in implementing approved projects, such as low capital disbursement, cumbersome procedures and a lack of synchronicity in enforcing laws.
The Vina Capital director said how Viet Nam opens its door and implements its commitments will affect their decision to invest in Viet Nam.
Dragon Capital's chief Scriven also agreed that the flow of direct or indirect foreign investment depends on domestic factors, and whether a country could maintain the investment capital flow depends on the way it treats customers and partners. However, he said he is optimistic that the capital flow pouring into Viet Nam will continue increasing.
According to the latest economic freedom ratings published by the Fraser Institute and members of the Economic Freedom Network, Viet Nam is ranked 138 out of the 157 rated economies while China, 119 and Thailand, 50.
Therefore, investors pointed to the need for Viet Nam to promote capital management capacity, reform investment licensing process, and create a more open and transparent investment and business environment.
Source: VNA
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