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Vietnam's FDI Still in the Spotlight
February 25, 2009
As Vietnam integrates deeper and deeper into the world economy, the world economy spirals to lower and lower levels. However, foreign direct investment (FDI) coming into Vietnam increased markedly in 2008 and it's expected to continue to be high in 2009.

In particular, new investment projects requiring capital of US$1 billion or more did much to bring the FDI amount in 2008 to US$64.11 billion.

The Ministry of Planning and Investment said that businesses from 50 countries and territories registered to invest US$60.217 billion (not including supplementary capital) in 1,171 projects in Vietnam in 2008, a 222 percent increase over 2007. Interestingly, that which was invested in 2008 was 26.7 percent of the FDI capital invested in the last 20 years. Phan Huu Thang, the director of the Foreign Investment Department of the Ministry of Planning and Investment, was speaking about FDI investment in 2008 when he said, "Most importantly, we have directed this capital to production and development while the world is in the midst of economic recession," he said.

Also last year, revenue earned by FDI enterprises climbed to US$50.55 billion, 24.4 percent more than in 2007. Of this, US$24.465 billion came from exports, which was also about 40 percent of Vietnam's total export earnings. FDI enterprises paid in US$1.982 billion in taxes last year, a 25.8 percent increase from 2007.

Thang predicted that although FDI will amount to US$20 billion this year, this would be only due to the global economic crisis, rather than internal reasons such as the investment environment within Vietnam or State administrative policies.

Because investment in Vietnam has been increasing for years, and this is particularly true for 2008, one can conclude that the investment environment in the country is very good and investment projects are proceeding satisfactorily. It is hoped that thanks to the potentials and advantages that Vietnam has, Vietnam will continue to attract large amounts FDI capital in 2009.

(VEN)
 
 
 
 
 

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