return icon Vietnamnet.vn

Multibillion-dollar projects exist on paper only

Over 20 mammoth multibillion dollar foreign-invested projects have been licensed in the country, with 11 in 2008 alone. These include 13 real estate and steel projects, many of which have had their licenses revoked or are still on paper only.
VietNamNet Bridge - Over 20 mammoth multibillion dollar foreign-invested projects have been licensed in the country, with 11 in 2008 alone. These include 13 real estate and steel projects, many of which have had their licenses revoked or are still on paper only.


{keywords}

Provincial authorities began running the race to attract foreign direct investment (FDI) in 2005, when decentralization in licensing FDI projects was activated. 

More and more huge projects capitalized at $4-5 billion to $10 billion have been registered, for which the provincial authorities have received acclaim.

However, many of the projects have never been implemented. 

Provincial authorities are disappointed as the projects have occupied large land areas, thus causing a big waste in the land fund use, spoiled industry development plans and badly affected local socio-economic development. 

In a report about the local economic integration capability released by the Ministry of Industry and Trade’s National Committee on International Economic Cooperation, Nguyen Thanh Trung, head of the research team, said provincial authorities have had to make choices between short-term solutions and long-term development plans.

In Vietnam, a term of office lasts four to five years, while officials needs to have a long term vision for 20, 30 or even 50 years when drawing up local economic development plans.

Since leaders of cities and provinces can stay in their offices for four to five years, they need to make the choices that can bring success just within four to five years, or they will be considered ‘incapable’. 

As a result, the leaders focus on short-term plans while forgetting about long-term strategies.

Nguyen Mai, chair of the Vietnam Association of Foreign Invested Enterprises (VAFIE), noted that in many cases, projects were registered with capital of billions of dollars, but the disbursed money comes in dribs and drabs, which have no positive influence on the local economies.

“In many localities, provincial authorities just try to attract FDI to achieve a higher GDP,” Mai said, adding that the projects are not the driving force that develops local economies.

The research team pointed out that FDI efficiency is not in the investment capital of these foreign-invested projects, but in the investment quality.

The northern province of Vinh Phuc, for example, has been very successful in attracting FDI. 

The largest project in the province has investment capital of $500 million only. However, the local economy has developed well, with FDI projects bringing tens of trillions of dong to the state budget.

Tran Thuy


MORE NEWS

Central bank not tighten real estate credit: Deputy Governor

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

Vietnamese Prime Minister starts official visit to Singapore

Prime Minister Pham Minh Chinh, his spouse, and a high-ranking Vietnamese delegation arrived in Changi Airport on February 8 afternoon, starting a three-day official visit to Singapore.

Businesses discuss ways to overcome challenges in 2023

Warned that uncertainties will still exist in 2023, businesses need to prepare well to weather the storm.

Vietnam's bond market remains quiet this year

The scale of debt in the corporate bond market is less than 15 per cent of GDP.

Organ trafficking in Vietnam driven by high demand, low rate of donation: experts

A conference on organ donation registration and the prevention of human organ and tissue trafficking was held on Monday.

VCCI proposes allowing businesses to set fuel retail prices

The Vietnam Chamber of Commerce and Industry (VCCI) has written to the Government suggesting fuel retail prices be decided by businesses based on supply and demand to prevent fuel shortages.

VIETNAM NEWS HEADLINES FEBRUARY 8/2023

Vietnam puts children at centre of development policies, strategies: Ambassador

Gov’t issues action plan to realize Hanoi’s development vision until 2045

The Government has issued an action plan to realize Politburo’s resolution on the objectives for Hanoi’s development until 2030, with a vision to 2045.

Commercial sidewalk use may be charged by HCMC authorities

HCMC is planning to allow the paid use of sidewalks for commercial purposes such as vending goods or parking if these business activities leave a space of at least 1.5 meters wide for pedestrians.

CAAV advises caution when buying air tickets

The Civil Aviation Authority of Viet Nam (CAAV) has received feedback on the fact that passengers have to buy air tickets higher than the specified prices on domestic routes, especially during the peak of the Lunar New Year (Tet).

Prime Minister leaves Hanoi for official visits to Singapore, Brunei

Prime Minister Pham Minh Chinh, his spouse and a high-ranking delegation of Vietnam left Hanoi at noon on February 8 for official visits to Singapore and Brunei from February 8-11.

US war veteran wishing to return wartime diary to Vietnamese family

Pater Mathews, a US war veteran, has emailed relevant agencies of Ha Tinh province, central Vietnam, expressing his desire to fly to Vietnam and return a Vietnamese martyr’s diary he came across decades ago to the martyr’s family.

VIETNAM BUSINESS NEWS FEBRUARY 8/2023

January payment transactions via national public service portal valued at 11.8 mln USD

Vietnam needs new products, services to reach tourism targets

To realise the targets of attracting 110 million tourists and earning some 650 trillion VND (27.5 billion USD) in revenue this year, Vietnam is recommended to develop more products and services to offer new experiences to visitors.

PM Chinh’s Singapore visit expected to advance bilateral trade ties

Prime Minister Pham Minh Chinh’s Singapore visit from February 8-10 aims to affirm the determination to elevate the bilateral economic ties to a new height in the context of many free trade agreement (FTAs) coming into force.
back_to_top