Vietnam had 575 new projects with total registered capital of more than $4.3 billion. In addition, 199 old projects were allowed to increase capital, with an additional amount of around $870 million. In general, the country attracted more than $5.2 billion in this period, an increase of 8% year on year.

One thing that helped Vietnam set that record is that the government has opened the door of some sensitive fields for foreign investors, for example permitting foreign firms to establish commercial companies in Vietnam to become involved in seafood, garments and electronic component import-export activities.

The visits by high-ranking delegations of the Vietnamese National Assembly, the Party, the state and the government to Laos, Cambodia, China, Japan, the Republic of Korea, India and especially the recent visit to the US by President Nguyen Minh Triet have been highly applauded by the international community, contributing to raising the prestige of Vietnam and promoting the new wave of investment into the country.

Since the Vietnam-US Bilateral Trade Agreement took effect, the trade ties between the two sides have made great progress. Two-way trade revenue reached $7.8 billion in 2005, nearly doubling that of 2001 ($1.5 billion). The figure was $9.7 billion last year.

The US is currently the largest export market of Vietnam. The US’ investment into Vietnam by April 2007 was more than $2.3 billion – 8^th among countries and territories investing in Vietnam. Many contracts between big groups of the two countries have been signed, for example the contracts between Chevron and PetroVietnam, Microsoft and the Bank for Agriculture and Rural Development, FPT and CMC, Motorola and the Vietnam Post and Telecommunications Group (VNPT), SSA Marine and the Vietnam Shipping Lines Corporation (Vinalines), the US Chamber of Commerce and the Vietnam Chamber of Commerce and Industry (VCCI).

Chairman of the ASEAN-US Trade Council Matt Daley said that Vietnam was a newly emerging market and very important, not only for importers and exporters and service providers, but also for investors from the US and other countries.

In the next decade, the US can become one of the five largest investors in Vietnam. US investors are considering Vietnam a replacement for the establishment of production and distribution centres, firstly serving exports, said Mr. Matt Daley.

Three months ago, a steel project of India worth more than $527 million in registered capital in the southern province of Ba Ria-Vung Tau was granted an investment certificate, marking a new period of India’s investment in Vietnam. Thanks to this project, India becomes the third-largest investor among 36 countries and territories that initiated new projects in Vietnam in the first six months of 2007.

“India’s investment into Vietnam will grow quickly in the coming years and there will be more and more big investors from India coming to Vietnam,” said Indian Ambassador to Vietnam Lal T. Muana.

With more than 70 companies accompanying Prime Minister Nguyen Tan Dung on his recent visit to India, Vietnamese and Indian companies signed contracts totalling nearly $4.5 billion.

Director of the Japan-ASEAN Centre Nobutoshi Akao emphasised that with favourable geological positions, a stable society, young and hard-working workforce, low labour costs, Vietnam is currently an attractive address for Japanese investors. The improvement of the relationship between Vietnam and Japan helps strengthen the confidence of Japanese investors in Vietnam.

British Ambassador to Vietnam Robert Gordon forecast that foreign direct investment into Vietnam this year could reach $20 billion, doubling that of 2004.

For the first time big companies of Vietnam took part in the World Economic Forum (WEF) on East Asia in June 2007 and this event has opened a new phase in the relations between Vietnam and WEF, helping Vietnamese businesses to become members of WEF in the near future.

A survey of 20 newly emerging markets taken by PriceWaterhouseCoopers released on July 8 said that Vietnam was the most attractive site for the manufacturing industry and the most competitive market in terms of price.

All positive signs in the first half of the year herald a new wave of investment into Vietnam in the coming time.

Source: Nhan Dan