The Ministry of Planning and Investment (MPI) plans to focus its efforts on attracting investment in projects that suits the nation’s development plan committed amount of capital.

Phan Huu Thang, Director of the MPI Foreign Investment Department, has emphasised the policy shift while granting an interview to Viet Nam News Agency’s reporter recently.

“We have come to a stage when FDI amount is no longer the sole objective as what is important now is that the capital flow should serve the development plans of not only the nation but also each region and each locality,” he said.

This change has already been observed recently with many localities refusing multi-million USD FDI projects on the ground that they did not fit the local development strategies. Central Da Nang city rejected two steel projects out of concern that they would affect tourism, the city’s spearhead economic sector. A project to build a thermal power plant in northern Ninh Binh province and a steel project in southern Ba Ria – Vung Tau province were also repudiated due to similar reasons.

Advocating those localities’ decisions, Minister of Planning and Investment Vo Hong Phuc said although many investors are eyeing the steel sector, the ministry will not allow any projects outside planning.

In line with the policy, the MPI set the target of attracting 15 billion USD in foreign directed investment in 2008, 26 percent less than last year’s record of 20.3 billion USD.

Priority will be given to hi-technology, sourced technology, infrastructure, human training, health care, construction of hotels and hi-end residential areas, which will help narrow the development gap between Viet Nam and other countries.

Major groups from Japan , the EU, the US and the Republic of Korea will continue be major partners of Viet Nam this year, minister said, adding that the country is also expecting to have some large projects from the Middle East after a series of investment promotion activities.

To ensure success of the investment quality policy, director said it is necessary to increase the disbursement of capital.

With a target to disburse about 6 billion USD in 2008, up 33 percent from last year, in the first quarter, the MPI will coordinate with localities to work out support policies for FDI disbursement, with large-scale projects to receive special assistance. 

Attention will be also paid to removing outstanding problems in transport infrastructure, skilled work force, site clearance to help raise disbursement, the ministry added.

According to the Foreign Investment Department, the Government will pour 22.5 billion VND (1.4 million USD) in the national investment promotion programme this year.

Source: VNAgency.