First half attracts 5.2 billion USD in foreign investment

Foreign direct investment (FDI) into Viet Nam has increased by eight percent year on year, culminating at over 5.2 billion USD in the first half of 2007.

June saw a drastic surge in the number of licensed FDI projects: at at 203. These newly-licensed projects made up 35 percent of the first six months’ total, according to the Foreign Investment Department under the Ministry of Planning and Investment.

Oil-rich Ba Ria-Vung Tau province remains the leader in this term, wooing 16.6 percent of the national registered FDI. It is followed by the central province of Thua Thien-Hue, which took in 12.7 percent of the total, and the southern industrial province of Binh Duong, with 10.3 percent.

Among 36 foreign investors pumping money into Viet Nam, Singapore ranks first with investment of up to 890 million USD in 36 projects. Second is the Republic of Korea (RoK) with 166 projects capitalised at over 733 million USD.

The Foreign Investment Department has predicted that the rising trend will not stop there as at least 38 major projects with a combined investment of 35 billion USD are on the waiting list for Government approval. In total for 2007, FDI inflows into the country are expected to reach 20 billion USD, far beyond the original expectation of 12 billion USD.

One particular area of interest is in real estate development and the country's capital is drawing huge interest from awaiting foreign tycoons.

The Gamuda group from Malaysia, for example, is seeking a licence for a 1 billion USD trade-apartment complex, comprised of hotels, conference centres, luxury offices and apartments for lease. In addition, Japan’s Rivier Group has registered for an investment of over 500 million USD to build five-star hotels while the Pacific Land Limited from Great Britain is looking for a 1 billion USD project for construction of a biological hub in southern Ha Noi.

In the midland province of Vinh Phuc, the Compal Group from Taiwan has registered for a 500 million USD project to manufacture electronic appliances, and investors from the RoK are waiting for a licence to build a race-course for horses valued at 570 million USD.

Another company from Taiwan, the Foxconn Group, has expressed interest in building an information technology centre at an estimated cost of 5 billion USD, specialising in high-grade electronics appliances in a vast area spanning Bac Ninh and Bac Giang provinces, north of Ha Noi.

This surge in FDI has been attributed to continual reforms in the national investment and trade climate and upgrades of the legal systems in line with international commitments.

Since the Foreign Investment Law came into force in 1988, Viet Nam has attracted 7,490 FDI valid projects with a total charter investment of over 67.3 billion USD, of which almost 29 billion USD has been disbursed.

Source: VNA