The Situation of Fdi in Vietnam

Topics: Investment, Foreign direct investment, Ho Chi Minh Pages: 8 (1463 words) Published: November 12, 2012
The situation of FDI in Vietnam
Inflow of FDI
In 1987, Vietnam for the first time issued its ever first Law of FDI. Despite its relative short history, Vietnam has managed to attract a substantial amount of FDI. In relative term, Vietnam has been quite successful as compared with other countries, ranking the third recipient in the ASEAN


Firgure 1: FDI Inflow into Vietnam during 2000-2010 (source GSO)

Figure 1 shows the overall trend of FDI inflows in Vietnam for period 2000-2010. Together with the number of investment projects, the amount of registered capital for licensed projects were stagnant in the fourth first years of 20th century which is generally referred to as the circumstance of World Crisis period in Vietnam. Beginning the year2004, the amount of registered capital had a sign of developing and the registered capital peaked in the 2008 and dropped sharply subsequently when many multinational companies did not want to share their limited little capital as well as to focus on capital to reform their domestic enterprises seriously impact on Vietnamese economy. This phenomenon is most apparent in late 2008 and early 2009. Also, due to the influence of the financial crisis and the contraction of the credit markets, transnational companies are affected more or less. In 2008, merger and acquisition plans of transnational companies has declined 35%, down sharply from 2008. According to recently released statistics report of the Foreign Investment Agency also said that the implementation of FDI capital in 2011 is estimated at $ 11 billion, with the implementation of 2010 and contributed 25.9% of the total investment of the whole society. Do not complete the plan (the plan is $ 11.5 billion). Although only 74% compared to 2010, but this figure is encouraging in the context of global economic and domestic difficulties. The amount of registered capital increased by $ 3.1 billion, 1.65 times the registered capital increase in 2010 (1.89 billion USD). This shows that foreign investors remain positive reviews about business and investment environment in Vietnam. FDI made in 2011 is estimated at $ 11 billion, equivalent to 2010 and contributed 25.9% of the total investment of the whole society. 2.2 Sectoral distribution of FDI

Table 1
| |Number of projects |Total registered capital( Mil|Implementation capital (Mil| | | |USD) |USD) | |Total |14998 |229913.7 |88945.5 | |1988 |37 |341.7 | | |1989 |67 |525.5 | | |1990 |107 |735.0 | | |1991 |152 |1291.5 |328.8 | |1992 |196 |2208.5 |574.9 | |1993 |274 |3037.4 |1017.5 | |1994 |372 |4188.4 |2040.6 | |1995 |415 |6937.2 |2556.0 | |1996 |372 |10164.1 |2714.0 | |1997 |349 |5590.7 |3115.0 | |1998 |285 |5099.9 |2367.4...
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