11:07 | 21/04/2017 Economy
(VEN) - Vietnam attracted US$7.71 billion of foreign direct investment (FDI) in the first three quarter of 2017, a rise of 77.6 percent compared with the same period last year. The Ministry of Planning and Investment (MPI) attributed the strong increase in FDI to the presence of large projects.
In the first quarter of this year, Vietnam granted investment certificates for 493 new FDI projects with total registered capital of nearly US$2.92 billion, up 6.5 percent compared with the same period in 2016. Meanwhile, 223 ongoing projects were registered to increase their capital by a total of US$3.94 billion, up 206.4 percent.
Foreign investors contributed US$852.86 million to 1,077 projects, a rise of 171.5 percent compared with the first quarter of 2016.
In a talk with Vietnam Economic News reporters, Japan External Trade Relations Organization Chief Representative in Vietnam Atsusuke Kawada pointed out various factors making Vietnam attractive to foreign investors. These include low labor costs, a large market with more than 93 million consumers and a growing middle class, Vietnam’s deepening integration to the global economy, and a number of bilateral and multilateral trade agreements which have been signed and will take effect in the near future, creating major opportunities for Vietnam to attract FDI.
Apart from these factors, the MPI also attributed the strong increase in FDI in the first quarter of this year to the presence of large projects. Examples include Samsung Display Vietnam, a South Korean FDI project based in Bac Ninh Province, which increased its capital by US$2.5 billion, Polytex Far Eastern (Vietnam) Co., Ltd with Chinese Taipei investment, based in Binh Duong Province, which increased its capital by US$485.8 million, and Coca-Cola Vietnam, based in Hanoi, which increased its capital by US$319.8 million.
Although Vietnam is said to be an attractive destination for investors worldwide, the Provincial Competitiveness Index (PCI) report recently announced by the Vietnam Chamber of Commerce and Industry showed that foreign businesses still have to pay high unofficial expenses when operating in Vietnam. Therefore, to attract foreign investors, Vietnam needs to pay greater attention to improving the business environment.
In the first three months of 2017, foreign investors in Vietnam disbursed US$3.62 billion, a rise of 3.4 percent compared with
the same period last year.