VN continues to be an FDI and ODA absorber
09:14 | 17/09/2008
VGP - Việt Nam expects to attract over US $50 billion of foreign direct investment (FDI) in 2008, of which over US $10 billion will be disbursed. It also receives the total estimated official development assistance (ODA) of US $3.107 billion.

FDI into Việt Nam grows month by month

FDI into Việt Nam has continuously made new records over the past time. According the Ministry of Planning and Investment, within the first eight months, the total FDI capital reached US $47.158 billion, including US $46.324 billion from 772 newly-licensed projects and US $833.6 million as the additional capital of 210 projects.

In August alone, 118 projects throughout the country were licensed, with the total registered capital of US $1.827 billion; 22 ones added with US $45 million. The FDI disbursement in August was US $1 billion, bringing the total figure in the first eight months to US $7 billion. 

It is noticed that FDI tends to shift from services to industrial production, with two “hyper-projects” – the Formosa Corporation’s (Chinese Taipei) metallurgy mill in the southern province of Bà Rịa-Vũng Tàu and the oil refinery in Thanh Hóa Province, a US $14 billion joint-venture with Japanese and Kuwaiti partners.

ODA is still considered an important capital source for infrastructure development and environmental improvement. Out of US $1.7 billion registered within the first eight months, more than US $1.3 billion was disbursed.

Investors' positive evaluations on Việt Nam's effective ODA use will help allure more in the coming years. Recently, the Republic of Korean Government signed an agreement to grant a preferential loan worth of US $1 billion to Việt Nam within 2008-2011. The Switzerland also continues to name Việt Nam in its list of ODA receivers in 2009-2012.

Over the past time, Vietnamese authorities have endeavored to stabilize macro policies, address shortcomings relating to infrastructure and skilled human resource, shorten the duration and process of investment approval in order to attract more capital and push up disbursement.

By Ngọc Vân

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