FDI increase in 2013

Foreign Direct Investment (FDI) increased 54.2 percent in 2013, breaking a four-year decrease. The original FDI’s target was at US$13-14 billion.

The increase was due to confident investment in giant projects including Nghi Son Refinery and Petrochemical Complex Project, said PhD Phan Huu Thang, former head of Department of Foreign Investment Agency under the Ministry of Planning and Investment. This projects cost US$2.8 billion. 

Exports at Samsung Electronics Vietnam reached US$20 billion in 2013, said Chairman of Vietnam Association of Foreign Invested Enterprises Nguyen Mai.  This accounts for 14 percent of Vietnam’s total exports.  Investment for Samsung Chip and Electronics Component Plant is worth US$1.2 billion.  The company paid a reduced tax of 5 percent, about VND 1 trillion.  After reduction period the company is
expected to pay 10 percent.

In 1987 the government implemented the Law on Foreign Investment.  During the period of economic growth, Resolution 103/NQ-CP was issued in August 2013 to increase marketing and managing of FDI capital. Four months after the resolution passed, little solutions have been implemented.

The current FDI policy has not changed much since establishment in 1987. The country relies heavily on cheap labor to attract investments. Supporting industries have not shown improvements.
In order to achieve FDI target level, marketing for foreign investment must be improved or we will not see significant increase in 2014, said economic experts.

Samsung Heavy Industries Ltd, a shipbuilding company, and 16 South Korean supporting industries companies met with Vietnamese partners in October 2013.

The business trip was to seek partners in Vietnam and set a foundation for investments in 2014, said CEO of Samsung Heavy Industries Ltd Cheolhwa Jung.

Vietnamese companies should adopt business models from foreign companies for domestic contribution, said Phan Vinh Tri, former manager of Vinashin Company.

By Anh Thu – Translated by Thuy Doan

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