Existing projects have also registered additional capital during the period of $1.08 billion, including $272 billion in November.

This brought total registered FDI to a record high of $60.09 billion during the 11-month period, compared to only about $15 billion during the same period in 2007. FIA head Phan Huu Thang said the country expected to attract FDI of $65 billion for the entire year, including both new and additional capital.

Capital actually paid out by investors during the first 11 months of 2008 totalled a more modest $10 billion, however, although this still represented a substantial 44.2-per-cent increase over the same period of last year. The total included $950 million paid out during the month of November.

Implemented capital was expected to total $11 billion for all of 2008, 37 per cent higher than last year, said Thang.

The industrial and construction sectors attracted the greatest amount of FDI during the first 11 months, at $32.5 billion, followed closely by the services sector at $26.2 billion. The agricultural, forestry and fisheries sector trailed at $250 million.

Malaysia continues to be the leading source of foreign investment in Viet Nam, with 49 projects worth a total of $14.9 billion, including the new $9.8 billion steel production joint venture between Lion Malaysia and the Vinashin Group.

Taiwan ranked second, with 127 project worth a total of $8.6 billion, followed by Japan with 95 projects worth $7.2 billion.

Of the nation’s provinces and and cities, Ninh Thuan Province once again attracted the most FDI in the country, drawing nearly $9.8 billion during the first 11 months of 2008, followed by Ba Ria Vung Tau Province with $9.3 billion and HCM City with $8.3 billion.

Looking ahead to next year, the FIA projects that FDI will reach $30 billion in 2009, about half this year’s expected figure. However, paid-out capital is expected to increase 9-12 per cent to $12-13 billion in 2009.

The leading challenge to attracting foreign investment, the FIA said, was the global economic downturn, which was having its greatest impact on developed nations, which tended to be the leading sources of foreign investment into Viet Nam.

Thang also noted that Viet Nam’s infrastructure development – including electrical capacity, water supply, transportation and port system – was not keeping pace with the demands of many large-scale foreign-invested projects.

The nation was making better progress, Thang said, on improving the skill level of workers and managers and was working to resolve impediments to foreign investors, including protracted site clearance and labour disputes.
 Source: VNS