According to the Ministry of Planning and Investment, new projects mainly invested in industry and construction, accounting for 70 percent of the total number and more than 60 percent of capital. Projects in the service sector make up 23 percent and 35 percent of capital respectively, and the remaining projects are in agriculture, forestry and fisheries sectors. Noteworthy, the country has attracted big projects such as an information technology project worth US$605 million by the US Intel Group, a US$314 million project to build urban areas west of West Lake (Ho Tay), and a US$300 million tourism project by the US Winvest Investment Company in Ba Ria-Vung Tau province.

Regarding investors, Hong Kong leads among 21 investors, accounting for 32 percent of total registered capital, followed by the Republic of Korea (22 percent), the US (17 percent) and Japan (14 percent).

Foreign investors admitted that Vietnam’s efforts to improve investment environment are a new factor in attracting foreign directed investment (FDI) in 2006. According to a survey made by the Japanese External Trade Organisation (JETRO), 39 percent of surveyed enterprises consider Vietnam an attractive destination. Japanese businesses said that Vietnam is the best investment destination, especially as Japan is seeking ways to diversify its investment markets.

Japanese Ambassador in Vietnam Norio Hattori said Vietnam’s investment environment is more competitive and will further attract Japanese investors’ attention. However, the Vietnamese Government should take advantages of opportunities to improve the investment environment to catch up with or even surpass some other ASEAN countries.

The Samsung Company of the Republic of Korea (RoK) was one early investor to succeed in doing business in Vietnam. Director General of Samsung Vina Company Sang Youl Eom said with an annual growth rate of 8 percent, which has been maintained for years, Vietnam is becoming a promising land with an open business environment. After joining the World Trade Organisation (WTO) and the ASEAN Free Trade Area (AFTA), if Vietnam maintains such growth rate and improves its business environment, foreign companies will likely continue to seek further opportunities in Vietnam.