The Ministry of Planning and Investment set the new forecast to US$13 billion, 8.3 percent increase from the original. This growth composes of new projects worth $7.1 billion in the first eight months and ongoing ones of $1.2 billion.

Influencing the revision has been continuous updates of license applications for FDI projects of $50 billion to date; all are waiting on the ministry’s desk.

The largest of the investor groups is Taiwan’s Foxconn, the world’s largest electronic outsourcer, which plans to invest $5 billion in seven branches throughout the country – HCMC, Hanoi, Da Nang, Lang Son, Vinh Phuc, Bac Ninh, and Bac Giang.

Part of the sum has already been poured into building Foxconn high-end factories in the northern Bac Ninh

The second is Japan's Sumitomo Corp which hopes to build a $3.8 billion coal-fired power plant in the central province of Khanh Hoa.

India’s Tata Steel Ltd. is third with the proposal of the $3.5 billion steel complex in the central Ha Tinh province.

The complex will refine iron ore from Thach Khe mine to produce 4.5 million tons of steel products per year, helping the country reduce its reliance on steel imports.

In the tourism and property sectors are likely to witness massive investments from Swiss and Korean companies.

Swiss firm Trustee Suisse wanted to tie up with local state-run construction group Vinaconex to build a $2.7 billion urban-tourism-finance complex in Phu Quoc island, 280 kilometers west of Ho Chi Minh City.

The South Korean conglomerate that was building the Kumho Asiana Plaza in the heart of HCMC planned to invest $2.5 billion in developing the Giang Vo Culture and Trade Center and My Dinh Exhibition Center in Hanoi.

Another notable party is the US’s AES and Vietnam Coal and Mineral Industries Group. It plans to erect MW Mong Duong 2, a 1,200-thermal-electricity plant, which costs $1.4 billion, in the northern Quang Ninh province.

The ministry said the government’s central task in 2007 would be to effectively enforce laws to make the business environment more friendly.

The government was focusing on administrative reform, fighting corruption, and other measures to bolster the country’s competitiveness as an FDI destination.

It would encourage investment in information technology, electronics, biotechnology, and agro-forestry and seafood processing.

Source: Thanh Nien.