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Southeast Asia

Mar 18, 2005

Vietnam looks to shore up foreign investment rate

HANOI - Vietnam's Ministry of Planning and Investment (MPI) is mulling a strategy to keep Foreign Direct Investment (FDI) at or above 17-18% of total social investment capital until 2010.

According to the plan, total FDI capital for Vietnam should reach US$19 billion to $20 billion over the next five years.

Of this total, 55% will come from industry, 10% from agriculture, forestry and aquaculture and 35% from services.

According to the MPI, foreign-invested enterprises have sustained their export growth better than domestic enterprises, so the plan will pay special attention to luring FDI capital into the export sector, particularly those that make high-quality products.

Several other sectors, including the high-tech industry, will also be given priority in order to attract FDI capital.

Under the plan, FDI will also be geared toward projects that produce commodities domestically that can replace imported goods.

The plan also aims at favoring businesses that employ mostly domestic laborers and that use less capital. The MPI is compiling a list of projects in need of FDI to promote further investment.

The MPI reported that over the past 16 years Vietnam has continued to develop FDI, which has become integral to the national economy.

To this end, it has submitted a proposal to extend FDI management reform to all cities and provinces.

(Asia Pulse/VNA)

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