Viet Nam has drawn around US$83.1 billion worth of 8,590 foreign direct investment (FDI) projects over the past two decades, according to an official from the Foreign Investment Department.

According to Director of the Department Phan Huu Thang, the FDI flow into Viet Nam increased rapidly during the 1991-96 period before declining from 1997 due to negative effects of the regional financial crisis. The sector, however, started to show signs of recovery since 2000.

Average investment capital of each FDI project has also increased gradually with the exception of several years following the regional financial crisis.

From US$7.5 million per project per year during the 1988-90 period, the figure has almost doubled during the 2006-07 period.

Industry and construction proved to be the most attractive sector to foreign investors, accounting for 66.8 percent of the total FDI projects and 60.2 percent of the value, respectively, followed by the services sector, 22.2 percent and 34.4 percent.

The agro-forestry and fisheries sector accounted for 10.8 percent of all the FDI projects.

Viet Nam has attracted investors from 80 countries and territories around the world with those from Asia accounting for 68 percent; the European Union, 16.2 percent; the America , 11.8 percent. US businesses represented 3.6 percent of all foreign investors in the country.

The Republic of Korea currently tops the list of foreign investors in Viet Nam with US$13.5 billion in 1,837 projects. It is followed by Singapore with US$10.7 billion in 543 projects and Taiwan with US$10.5 billion in 1,788 projects.

Japan came fourth with US$9 billion in 928 projects, of which US$4.9 billion has been disbursed.

Over the past two decades, the FDI sector has made great contributions to the country’s socio-economic development by earning considerable export value and generating jobs for 1.26 million direct workers and more than 3 million indirect workers.

In order to meet the country’s socio-economic development plan by 2010 and its target to become an industrial country by 2020, priority will be given to FDI in hi-tech, information technology, mechanics, new energy and material production, said Thang.

He also singled out the services sector, particularly tourism, shipping, aviation, health, culture and education; and infrastructure development as areas most in need of foreign investment.

Source: Vietnam Agency.