Pledged foreign investment in Vietnam jumps 70 percent so far this year

The Star

HANOI, Vietnam (AP) – Foreign investment pledges in Vietnam have surged by nearly 70 percent so far this year thanks to the country's admission to the World Trade Organization, an official said Monday. 

As of Dec. 22, foreign investors have agreed to invest US$20.25 billion (euro14.08 billion), up 68.7 percent from the same period last year, said Nguyen Viet Cuong, an official with the Ministry of Planning and Investment. 

Last year, Vietnam attracted US$12 billion of foreign direct investment, a record since the country began accepting foreign investment in 1998. 

"This year we had expected to attract only US$13.5 billion, but this is beyond our expectation,'' Cuong said. 

Since the beginning of the year, 1,406 new projects have been licensed worth US$17.6 billion (euro12.24 billion). Investment in 361 existing projects has been increased by US$2.65 billion (euro1.84 billion). 

Major deals include Trustee Suisse's project to invest in a tourism complex in Phu Quoc, in the southern Kien Giang province, and the Vung Ro oil refinery being built by Britain's Technostar Management Ltd. and the Russian Tettoi Oil and Gas Company. 

"The admission to the WTO has definitely made Vietnam more attractive to foreign investors,'' said Le Dang Doanh, an economist. 

In exchange for joining the WTO, Vietnam was required to slash tariffs and open previously closed sectors of its economy to foreign investors. 

This year, Vietnam's economy is expected to grow 8.5 percent, according to the government projections, faster than the 8.2 percent rate from last year. – AP