Photo: Duc Anh
Gap between registered and disbursed FDI is slowly being bridged.
Total disbursement of foreign direct investment (FDI) this year stood at $15.8 billion, up 9 per cent against 2015, according to the latest report from the Ministry of Planning and Investment (MPI).
New and additional FDI capital totaled $24.3 billion, an increase of 7.1 per cent. New FDI reached $15.18 billion, equal to 97.5 per cent of capital in 2015, while additional FDI capital was $5.76 billion, equal to 80.3 per cent.
Source: MPI, December 2016
Professor Nguyen Mai, Chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE), said the gap between registered FDI capital and FDI disbursement is gradually narrowing and this is a positive sign and a bright point in the economy in 2016.
Annual GDP is estimated at 6.21 per cent while export growth won’t reach the annual plan. Foreign investors continued to pour money into Vietnam, however, showing the country’s attractiveness and the government’s efforts in improving the investment and business environments.
According to the Foreign Investment Agency at MPI, for the first time it also reported figures on FDI through purchasing shares and contributing capital. The figure was $3.42 billion, contributing significantly to total FDI capital against the decline in new and additional FDI capital.
In the latest news, the Vinh Phuc Provincial People’s Committee and South Korea’s GOMAX I&D Company signed an updated memorandum of understanding on December 27 to build a $1.5 billion horse racing track, golf course, and luxury villa complex.
The complex will span more than 20 ha and consist of a straight track, a grandstand, an entertainment area, at least two 50-stall barns, and 1,500 parking spaces, with commercial lots set aside for business and hotel developments.
The facility, if approved and built, is expected to create around 5,000 jobs and provide millions in annual tax revenue to the province. However, the preliminary development plan must still be approved by the Prime Minister before any construction work can begin and funding for the project is still to be secured. The South Korean company first submitted a proposal to build a racing complex worth $570 million in 2005.