Vietnam’s infrastructure has struggled to keep up with its robust economic and population growth. Rapid economic growth and urbanization are driving demand for roads, power, airports, ports, waste and water treatment, hospitals, and other public infrastructure for goods and services. Meanwhile, public funding is unable to meet these needs. The gap would have to be made up from other sources including private investment in the form of public-private partnerships (PPPs). To put it simply, the public sector has the ‘users’ (or customers) and land and can provide other incentives such as tax breaks. The private sector can bring in technology, capital and efficiency through experience. Other countries have successfully implemented PPPs. In Vietnam, a number of tools have been created to assist the government in its support for PPPs, aiming to create a much improved legal framework for PPP to revitalize investment in infrastructure projects. Legal issues update The … [Read more...] about Legal complications remain for foreign investment in Vietnam infrastructure
Foreign investment in vietnam
Foreign investment in Vietnam surge 47%
Foreign direct investment (FDI) registered in Vietnam in the first seven months of this year has risen a significant 47 per cent to almost US$12.9 billion, according to the General Statistics Office. A production line of LG Electronics Vietnam in northern Hải Phòng Port City. FDI disbursement during the first seven months of the year was estimated at US$8.6 billion, surging 16 per cent against the same period last year. Of that amount, fresh capital approvals for 1,408 projects rose 26 per cent compared to last year, to $8.7 billion, and 660 existing projects had their capital augmented by $4.24 billion, up 125 per cent. FDI disbursement during the period was estimated at $8.6 billion, surging 16 per cent against the same period last year. The GSO said the manufacturing and processing sector continued to take the lead with over $9.1 billion, accounting for 71 per cent of the nation’s total FDI. The real estate sector ranked second with $957 … [Read more...] about Foreign investment in Vietnam surge 47%
Reform policies needed to lure foreign investments in Vietnam’s consumer finance
The Hanoitimes - Consumer finance has ample room for growth in Vietnam, however, it is necessary to improve the policy framework to make the sector more attractive to foreign investors, experts said. Vietnam’s consumer finance market is expected to reach US$44 billion by 2019 According to the National Financial Supervisory Commission, consumer lending in Vietnam surged sharply by 65 percent in 2017 compared to 50.2 percent in 2016. The proportion of consumer credit in total outstanding loan of the entire banking system was estimated at 18 percent in 2017, up from 12.3 percent in 2016. Economist Le Xuan Nghia said consumer lending was a global trend, citing Europe as an example where consumer credit accounted for some 71 percent of total bank loans. The proportion of consumer lending in Vietnam’s economy was lower than that of other medium-income countries where the proportion stands around 30 percent. The Vietnamese consumer lending market is projected to reach … [Read more...] about Reform policies needed to lure foreign investments in Vietnam’s consumer finance
Foreign investment in Vietnam: moving forward balanced distribution
CPV: Foreign investment in Vietnam in 2006 has shown positive changes, reaching 9.5 billion USD. However, majority projects concentrated on big cities. Which raised concerns in unbalanced development among regions nationwide. Aimed at bringing out the issue, a reporter from Communist Party of Vietnam online Newspaper had a discussion with Minister of Planning and Investment Vo Hong Phuc. Reporter: Could you tell, does the direction of foreign investment mainly concentrating on big cities increase the development gap among regions? Mr. Vo Hong Phuc: It can be obviously said that for investor, when they invest in, they have to chose the most favorable-conditioned destination for pouring into, with the aim of earning much benefits. Thus, they will first invest in big cities and the place with better and more comprehensive infrastructure. This is a popular direction at present. But in order to ensure more uniform distribution of projects, the Government had preferential policies of … [Read more...] about Foreign investment in Vietnam: moving forward balanced distribution
Foreign investment in Vietnam surges to $44.5 bln
Hanoi Times - Vietnam attracted 167 foreign direct investment (FDI) projects worth US$13.6 billion in July, the Department of Foreign Investment said Friday. It brought the figures for the first seven months to 654 projects and nearly $44.5 billion, according to the department, which is part of the Ministry of Planning and Investment. The biggest project this year is a $4.3 billion investment to develop an urban area in PhuYenProvince by Brunei's New City Group. It was followed by a $3.8 billion oil refinery in Ba Ria-Vung Tau Province and a $3.5 billion university complex in Ho Chi Minh City by Malaysia's Berjaya Leisure Company. Taiwan continued to rank first with an investment of $8.4 billion, followed by Japan with $7.2 billion, Malaysia with $5.07 billion, Brunei with $4.3 billion, Canada with $4.2 billion and Singapore with $4.02 billion. This year foreign-invested enterprises have hired 16,000 new employees, a year-on-year growth of 15.2 percent. VNA … [Read more...] about Foreign investment in Vietnam surges to $44.5 bln