Vietnam targets USD11 billion in FDI disbursement

Vietnam will focus foreign direct investment disbursement next year, instead of the capital amount, but still expect to dole out $10-11 billion, said an official.

Vietnam will focus less on the amount of foreign direct investment (FDI) registered capital, but more on FDI disbursement next year, expecting to dole out USD10-11 billion, said an official.

Arksun Vietnam Co., Ltd in Hoa Xa Industrial Zone, Nam Dinh Province (Source: VNA)

The country sets a target of attracting USD15-16 billion of FDI registered capital in 2012, with a focus placed on improving the projects’ quality and efficiency, and enhancing the State’s management, said Do Nhat Hoang, Head of the Foreign Investment Agency under the Ministry of Planning and Investment at a press briefing in Hanoi on December 30.

Areas for investment will also be carefully selected, with priorities to infrastructure, "green" industries that are friendly to the environment, supporting industries, and high-tech industries of highly global competitiveness. Meanwhile, limit will be in non-production areas that may increase the imports or pollution.

In 2011, Vietnam attracted USD14.7 billion in FDI, down 26 percent from the previous year, but total disbursement hit USD11 billion, the same as in 2010, which accounted for nearly 26 percent of the total social investment. The FDI sector contributed USD3.5 billion to the country's remittances, up 15 percent year-on-year.

Industry and construction lured 76.4 percent of the total FDI capital, while the real estate accounted for only 5.8 percent, down from 34.3 percent in 2010.

By Dec. 25, there are 13,667 FDI projects operating in Vietnam with a total registered capital of USD198 billion.

Singapore is the largest foreign investor with a total registered capital of USD24 billion, followed by the Republic of Korea , Japan , and Taiwan .

The southern economic hub of Ho Chi Minh City took the lead in attracting FDI capital with USD32.67 billion, followed by the oil-rich province of Ba Ria-Vung Tau, Hanoi capital city, and southern provinces of Dong Nai and Binh Duong.