Viet Nam has licensed 448 new FDI projects worth US$2.67 billion in the first four months of the year, down 17.1 per cent compared with the same period last year, and permitted investors to infuse $1.01 billion in 167 existing projects.
While the commitments may have shrunk from last year, the actual disbursement has risen by 5 per cent to $4.2 billion, according to the Foreign Investment Department.
Authorities have been paying more attention to the "quality" rather than "quantity" of investment.
"[While considering an FDI project] authorities should ignore the idea of ‘more the better'," said Phan Huu Thang, a former head of the department.
Recently the central city of Da Nang rejected two multi-million dollar foreign projects over environmental issues.
To ensure the city's sustainable development, Da Nang authorities have adopted policies to attract FDI in hi-tech projects and supporting industries with high value addition, especially in "clean" projects.
Other provinces like Ba Ria – Vung Tau and Dong Nai have also rejected projects that could cause pollution, require large tracts of land, and employ unskilled workers.
The northern province of Hai Duong has decided to stop licensing FDI projects in sectors like textile and dyeing, leather and footwear manufacturing, plastics and composites, rubber processing, and paper production from pulp.
This year Hai Duong has also stopped seeking investments in production of construction materials and manufacturing that mainly involves exploitation of natural resources like minerals.
"Viet Nam has sound policies for FDI which are on the right track," said Nguyen Mai, Chairman of the Foreign-invested Enterprises Association in Viet Nam.
International organisations like the World Bank and International Monetary Fund, European, American, Japanese, and Korean business associations and the media had praised these efforts, Thoi bao Kinh te Viet Nam (Vietnam Economic Times) quoted him as saying.
Mai believed foreign investment would pick up this year due to the Government's efforts at institutional reforms and improving the business environment.
Compiled by Le Hung Vong (VNS)
Source: Click here
