FDI forecast to grow despite shaky start
HA NOI (VNS) - The country's foreign direct investment capital in the first two months of the year declined more than 60 per cent to US$1.54 billion against the same period last year. However, industry insiders forecast that the FDI flow will increase this year. According to the General Statistics Office, of the total investment, $830 million was the registered capital of 122 new projects, while the rest was additional capital of 41 existing projects. Processing and manufacturing remained the most attractive industries for foreign investors in the first two months of the year, comprising $1.18 billion of the total capital. Real estate followed with $278.3 million. Though the FDI flow in the initial months of the year was significantly modest, industry insiders expect the activity to increase in the coming months. This is based on the recent actions of foreign investors who are sanguine about the prospects of doing business in This week, high-level executives from 33 leading US companies are visiting This is a clear signal that the USABC explained that one of the main reasons for the keen interest of the When Viet Nam signs the TPP agreement, the US businesses will have added incentives to invest, the council said, adding that a number of US businesses, currently operating in Viet Nam, have revealed that they will double their production capacity once the agreement is inked. In the latest survey released in Ha Noi this week by the Japan External Trade Organisation (JETRO) on business confidence among Japanese-affiliated firms in 20 countries and territories in Asia and Oceania from October to November last year, 70 per cent said they regarded Viet Nam as an important investment base and planned to expand investment in the country. JETRO surveyed 9,371 Japanese firms operating in 20 countries, including 435 Japanese firms in Yasuzumi Hirotaka, managing director of JETRO in Ninety per cent of them said they wanted to expand to increase turnover. In addition, non-production companies said Nearly 60 per cent of respondents in Japanese companies said they tend to invest in the country to exploit sales in the local market, he said, adding that the GDP of Viet Nam was $2,000 per person, and about $4,000 in Hirotaka said Japanese companies tend to be prudent in their investments, with an initial investment at a small scale and then later expansion. In countries with poor human resources, expansion can exhaust labour resources, which can then led to rapidly increased wages, he explained. However, this is less likely to happen with In addition, However, half of the respondents said that administrative formalities, customs formalities, the tax system, laws and increasing wages in Last year, the ratio of cost of materials and parts to production in Hirotaka said that, in order to increase the competitiveness in cost, The Minister of Planning and Investment Bui Quang Vinh has so far affirmed that the Government has pledged to protect legitimate and serious foreign investors and to create favourable conditions for them to do business in Vinh said that the ministry is gathering recommendations on the revised draft Law on Investment, which is expected to create a more transparent investment climate, amending and adding new administrative procedures and addressing the difficulties in gauging investment performance. -VNS |
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