Workers assemble components into Samsung mobile phones at its first factory in Bac Ninh (Photo thongtincongnghe.com)
(VOVworld) – Although Vietnam still faces many difficulties, the country has made remarkable achievements in foreign direct investment or FDI – over 2013. One of the biggest changes has been in the nation’s investment structure with more focus on high-tech projects which are in line with Vietnam’s economic restructuring and development.
Vietnam’s foreign direct investment attraction has exceeded the set target in both quantity and quality, particularly in disbursement. The country has overcome significant challenges, especially following the global economic crisis.
By the end of last month, Vietnam attracted 20.8 billion USD from newly-registered and expanded capital. The entire year’s total FDI is estimated to increase 5.5% against the same period last year, when disbursement reached 10.5 billion USD.
The processing and manufacturing industries remained at the top of the list of 18 sectors that received much foreign investment, with 557 new projects. This success is a result of Vietnam actively luring major projects. Do Nhat Hoang, the Director of Foreign Investment Department of the Ministry of Planning and Investment, said:
“There are two changes in the amount of registered capital. The first tendency is to focus on big value projects while the other is small and medium size projects. The achievements are thanks to the government management, close cooperation among ministries, relevant agencies, and provincial authorities so that projects can be licensed early and ready for implementation period.”
Japan’s investment is an important source for Vietnam’s economy. Japan continues to be the largest foreign investor, with new and additional investment amounting to 5.7 billion USD, accounting for 27% of the total figure.
In October, the 9-billion-USD Nghi Son Oil Refinery and Petrochemical complex became the largest FDI project in Vietnam. It is the result of a joint venture between PetroVietnam, Kuwait Petroleum International, Japan's Idemitsu Kosan, and Mitsui Chemicals. The Nghi Son Thermo-power project has a total capital of 2.3 billion USD for the first phase and additional 2.9 billion USD for the next phase. It has led the central Thanh Hoa province to the top place in Vietnam in FDI attraction.
PM Nguyen Tan Dung (fourth, left) and delegates announced the groundbreaking ceremony of Nghi Son Refinery and Petrochemical complex in Thanh Hoa Province (Photo Huy Hung, VNA/VNS)
Another key project is Samsung’s mobile phone and electronic component manufacturing factory in northern Bac Ninh province. The project was added with 1 billion USD in additional capital, bringing its total investment capital to 2.5 billion USD. This project has set records in becoming Samsung’s biggest factory in the world and in the shortest time of disbursement. These changes have partly sped up Vietnam’s economic recovery and restructuring.
Vietnam still needs to work on creating a more attractive investment environment to compete with other regional countries. Drawing on experiences from the disbursement of the Samsung project, the Ministry of Planning and Investment will apply incentives synchronously for major investors to encourage them to speed the disbursement. Minister Bui Quang Vinh said:
“We should be determined not to license low-tech, resource wasting, and environmentally polluted investment projects. We are pursuing a roadmap to prioritize high-tech and added value investment projects especially in Hanoi and Ho Chi Minh City or southern Dong Nai province, major hubs in FDI attraction.”