Government still provides preferences for investors (19/7)
19/07/2013 - 23 Lượt xem
Vinh said that 20 years ago
Vietnam had a cheap labor force, abundant natural resources and great
preferences. Vietnam even spent money to clear ground for the
construction of projects to attract foreign direct investment (FDI).
However, these advantages are mitigating as the country is tightening
its financial policies and choosing high-tech, high-added-value and
environmentally-friendly projects.
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By
June 2013 Japan led the 101 countries and territories investing in
Vietnam with 1,900 projects and total registered capital of US$32,667
million.
In
the first six months of this year Japan was also the number-one
investor among the 45 countries and territories investing in Vietnam
with total new and supplementary capital of US$3,992 million.
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Meanwhile, infrastructure
remains inadequate, administrative procedures overly bureaucratic, and
labors costs are no longer Vietnam’s comparative advantage due to
economic growth and per capita increased income.
As a result of these less
obvious advantages, the Vietnamese investment environment has become
less attractive than other countries in the region such as Thailand and
Indonesia. This is why although Japan is the number-one investor in
Vietnam it has only 1,500 businesses in the country compared with 7,000
in Thailand.
Mitigating advantages also
caused a decline in FDI flows into the country in recent years.
Statistics from the Foreign Investment Department show that Vietnam
attracted US$64 billion in FDI in 2008, US$21.48 billion in 2009,
US$18.1 billion in 2010, US$14.7 billion in 2011 and US$16.3 billion in
2012.
However, FDI disbursement did
not reduce, averaging US$11 billion annually in recent years showing a
positive sign and helping bridge the division between registered and
invested FDI capital. Specifically, Vietnam disbursed US$5.7 billion
worth of FDI in the first six months of this year, a 5.6 percent
increase from a year ago.
As a result of progressive
disbursement, the FDI sector has made important contributions to the
Vietnamese economy. Currently FDI accounts for one-quarter of total
investment in Vietnam and more than 60 percent of export revenues. FDI
businesses have also created two million direct jobs and possibly three
million in the near future. They have also brought their new technology
and managerial skills to Vietnam to contribute to restructuring the
economy.
In recognition of their
important contributions, the Vietnamese Government still wants to boost
FDI. To achieve the goal, Vietnam will provide new preferences for
foreign investors in high-added-value sectors to benefit both investors
and the country, said Bui Quang Vinh./.
Source: VEN
Source: VEN
