Vietnam Attracting More FDI Projects

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Aug. 22 – In the first seven months of this year, Vietnam, with 43 cities and provinces, attracted 651 additional foreign direct investment projects.

The top cities and provinces are:

Hai Duong (northern province)

  • Total capital of US$2.47 billion = 32.4 percent of the county’s total registered foreign capital
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Ho Chi Minh City (southern province)

  • Total capital of US$1.59 billion = 20.8 percent of the county’s total registered foreign capital

Ba Ria – Vung Tau (southern province)

  • Total capital of US$478 million = 6.3 percent of the county’s total registered foreign capital

Tay Ninh (southern province)

  • Total capital of US$436 million = 5.7 percent of the county’s total registered foreign capital

Accordingly to various experts, there is a chance in the near future to increase foreign investment when investors change investment locations, restructure investment capital, and tune their business activities to the changing environment.

An example for the increasing FDI projects over the years can be the investments from the European Union (EU). According to the Multilateral Trade Department, European investors pledged a capital of around US$31 billion.

The top EU-invested FDI sectors are the heavy industry with 180 FDI projects worth US$4.2 billion and the oil and gas sector with 19 FDI projects worth US$2.5 billion.

Also the Vietnam-EU bilateral trade relations are increasing starting from 2000 until end of 2010 with trade turnover growing from US$4.1 billion to US$17.75 billion. On the one hand, Vietnam’s exports to Europe increased from US$2.8 billion to US$11 billion, but on the other hand Vietnam’s imports to Europe grew from US$1.3 billion to US$6.3 billion.

Dezan Shira & Associates is boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in Vietnam. To contact the firm, please email vietnam@dezshira.com, visit www.dezshira.com, or download the firm’s brochure here.