VietNamNet Bridge – Viet Nam witnessed a surge in newly registered and additional FDI in the first five months of this year. Totalling US$8.51 billion, the amount was an increase of 8.9 per cent over that of the same period last year.

Workers pack confectionery at Singapore's URC Vietnam Co in the southern province of Binh Duong. The country licensed 398 foreign-invested projects worth US$8.51 billion in the first five months of this year.

The country licensed 398 foreign-invested projects with newly-registered capital of more than $5 billion, and permitted 160 others to have additional capital of $3.42 billion, up 5.8 per cent and 14 per cent respectively from last year.

An estimated $4.58 billion from the foreign-invested projects has been disbursed over the last five months, a 1.6 per cent year-on-year increase, according to the Ministry of Planning and Investment's Foreign Investment Agency.

The processing and manufacturing industries still top the list of the 18 sectors that received foreign investment. They are seeing new and additional capital of $7.5 billion, followed by the property, wholesale and retail sectors.

Among the projects given the go-ahead, authorities approved a plant that will be built by Samsung Electronics Vietnam to produce and assemble hi-tech electronic products with a total investment of $2 billion in Thai Nguyen Province.

They also allowed additional capital of $2.8 billion for Japan‘s Nghi Son Oil Refinery Ltd Co project in Thanh Hoa Province.

According to the agency, among the 40 countries and territories that have invested in Viet Nam, Japan ranked first with newly-registered and additional capital of $3.6 billion in the reviewed period, followed by Singapore with $2.3 billion and Russia with $1 billion.

Central Thanh Hoa Province led other localities in FDI attraction with $2.8 billion in the aforementioned time. Northern Thai Nguyen came second with over $2 billion and central Binh Dinh Province, third with more than $1 billion.

Up to $450 million in FDI was registered in the southern province of Dong Nai in the first five months, equivalent to 45 per cent of its target of $1 billion for the year, according to the provincial Department of Planning and Investment.

Of the total, $190 million came from 22 newly-licensed projects while the remainder came from 26 existing projects that increased their capital.

Pledge to aid investment

Provincial authorities have vowed to create further favourable conditions for foreign investors in the locality.

This would include speeding the construction of infrastructure in local industrial zones and other facilities, paving the way for the development of support industries as well as smooth transport and providing easier access to credit, said vice chairwoman of the provincial People's Committee Phan Thi My Thanh.

Furthermore, regular dialogues would be held for investors and authorities to iron out problems and come up with necessary assistance.

Local authorities also pledged to adjust policies on investment, taxes and land use to help businesses develop.

In 2012, the province attracted nearly $2 billion in FDI and over VND13 trillion ($619 million) in domestic investment.

Source: VNS