(VEN) – The amount of disbursed foreign direct investment (FDI) capital has increased in recent years, narrowing the gap between registered and invested FDI capital. However, the Ministry of Planning and Investment said that disbursed FDI capital did not match registered FDI and did not keep up with the demand.
Positive changes
Statistics from the Foreign Investment Department show that FDI flows into Vietnam had dropped sharply in recent years. However, the amount of disbursed FDI capital had been stable.
Registered FDI capital reached US$64 billion in 2008 and disbursed FDI capital amounted to US$11.5 billion, accounting for 17.9 percent of total registered FDI capital. The figures were US$23.1 billion, US$10 billion and 43.2 percent in 2009; US$18.6 billion, US$11.5 billion and 61.8 percent in 2010, US$14.7 billion, US$11 billion and 74.8 percent in 2011, and US$13.013 billion, US$10.5 billion and 80.7 percent in 2012, respectively.
FDI capital invested in the first seven months of this year reached US$6.65 billion, a 6.4 percent increase from the same period last year.
The gap between registered and disbursed FDI capital was narrowed, proving that FDI in Vietnam has become more effective and more practical.
Boosting FDI disbursement
Despite the increase in disbursed FDI capital in recent years, the gap between registered and disbursed FDI capital remained big. The Ministry of Planning and Investment said that Vietnam had 14,263 FDI projects with total registered capital of US$208.6 billion by the end of 2012. Of this, more than US$97.63 billion was invested, accounting for 47.2 percent of all registered FDI capital. Minister of Planning and Investment Bui Quang Vinh said that disbursed FDI did not match what was registered and did not keep up with the demand.
At a workshop held early this year to review 25 years of FDI in Vietnam, experts showed many reasons for the slow disbursement of FDI capital, including incomprehensive infrastructure, inconsistent laws and policies, and the low-quality workforce, which together reduced the attractiveness of the investment environment, resulted in the slow development of FDI projects and wasted time, money and human resources.
The slow disbursement of FDI capital has also discouraged investors. Bui Huy Hung from the Government Office’s Department for International Cooperation and Project Management said, “How would we promote our investment abroad if we could not even help foreign investors complete their projects in our country?”
For this reason, promoting FDI disbursement is one of major targets set for the near future by the Ministry of Planning and Investment. To make the goal happen, the Ministry of Planning and Investment will focus on its specific policies. These are to improve the law system related to investors and businesses, decentralize investment management, renew investment promotion activities, improve planning and regulations on science, technology and environmental control, develop support industries, and strengthen state management of projects after they obtain investment licenses./.
By Nguyen Hoa
Đăng ký: VietNam News