Viet Nam attracted US$5.2 billion in foreign direct investment in the first six months of the year, a year-on-year increase of 8 per cent, according to the Foreign Investment Agency (FIA).

The nation saw 575 new foreign-invested projects nationwide during the period, worth a total of over $4.3 billion, for an increase of 6.4 per cent in value and 69.6 per cent in the number of projects over the first six months of last year.

Nearly two hundred additional projects increased registered capital by a total of $870 million.

FIA deputy director Nguyen Bich Van said, "Viet Nam was able to see big results in foreign investment, thanks to such advantages as a stable political environment, open policies to attract investment and favourable positions along international air and seaways."

FDI increases could also be attributed to changes last year in the Investment Law and Enterprise Law which focused on greater freedom of business and equality between domestic and foreign enterprises.

The southern province of Ba Ria-Vung Tau attracted the most FDI in the first six months of the year, drawing $724.6 million, or 16.6 per cent of the national total; followed by the central province of Thua Thien Hue (12.7 per cent) and the southern province of Binh Duong (10.3 per cent).

Singapore was the leading source of foreign investment in the first six months, with 31 projects worth a total of $890 million. South Korea and India followed, at $733.9 million and $527.2 million, respectively.

Singapore’s high place on the list this year was attributed to joint investment promotion efforts by the Ministry of Planning and Investment and the Singapore-based Economic Development Board.

Overseas investment

Vietnamese enterprises have invested $1 billion overseas so far, according to the data of Ministry of Planning and Investment, putting $89.5 million into overseas projects in the first five Months of this year.

The ministry expects the total for the year to reach $300 million and that annual totals would reach $500 million per year by the end of 2008.

Viet Nam enterprises currently do business in 33 countries, with Laos the leading overseas market, accounting for $461 million worth of overseas investment so far, or 44.7 per cent of the total. Algeria, the site of joint petroleum exploration and exploitation projects with PetroVietnam, along with Iraq and neighbouring Cambodia were also major destinations of overseas investment.

Viet Nam is targeting Africa, Cuba and Venezuela for further oil exploitation projects, while construction projects have formed the leading type of overseas investment in Laos and Cambodia.

Source: Vietnam News