Inflow of investment skyrockets

The Ministry of Planning and Investment ranks HCM City’s neighboring province, Dong Nai, as the best locality in attracting foreign direct investment during 2007. It attracted more than US$2.6 billiion.

The great success of Dong Nai in attracting industry and real estate projects contributed to the success of the whole country in attracting foreign investment capital in 2007. Vietnam attracted US$20.3 billion from nearly 1,500 projects, of which more than US$17 billion was from fresh ones, up 70% compared with 2006.

This is a record in the time since the country enacted the Foreign Investment Law in 1988, says Phan Huu Thang, head of the foreign investment department under the Ministry of Planning and Investment.

The past year also saw other records set in FDI attraction. The investment capital made up 25% of the total FDI inflow of the past 20 years. Some 60 of all 64 localities in Vietnam have now attracted FDI projects. Five years ago, projects worth US$100 million seemed very impressive; however, that figure is outclassed by the US$1.7 billion Vung Ro oil refinery in the central province of Phu Yen. The refinery is a project of Britain’s Technostar Management and Russia’s Telloil. HCM City followed Dong Nai to take the second position at more than US$2.5 billion.

The foreign investment department estimates that when the more than 1,500 projects in last year’s count are put into operation, they will give jobs to 130,000 people, up 20,000 compared with the precious year. This is a record, Thang says.

The country’s entry to the World Trade Organization and commitments to legal change has instilled significant confidence in foreign investors, experts say. That explains why thousands of multinational firms come to look for investment opportunities and are ready to spend millions or billions of dollars for projects. The experts also forecast that Vietnam will continue to see strong investment in the next few years.

An example of this confidence is given by Vina Dai Phuoc, a joint venture of investment fund operator VinaCapital Group and a Ministry of Construction unit, Development and Investment of Construction (DIC) Group, which has announced it has gained an investment license for a residential and commercial complex in Dong Nai

The 200-hectare Dai Phuoc Lotus is capitalized at US$400 million, of which DIC Group provides 28% while the rest is from the VinaCapital. Work on the complex, which is part of the 446-hectare Dai Phuoc ecological, tourist and urban area developed by DIC Group in Nhon Trach Distric, will start early this year and be completed in 2016.

It will comprise serviced apartments, houses and villas, shopping centers, office buildings and resorts. Vina Dai Phuoc is offering spaces for public facilities like primary schools, kindergartens, medical center, hospital and restaurants, as well as green areas and internal roads.

Seth Lim, general director of Vina Dai Phuoc, said:” This is one of the biggest realty projects of VinaCapital in Vietnam, and our first project in Dong Nai Province.”

Vina Dai Phuoc was one of eight local and foreign investment projects with combined pledged capital of over US$1 billion Dong Nai Province authorities have granted licenses to late November last year.

Others are a residential area worth US$290 million by Taekwang Vina Industrial, a high-rise building project worth US$47 million by Vietnam’s Sunco and Malaysia’s Sova Holdings, an 18-hole golf course by Korean-invested Jeongsan Vina worth US$35 million and the expansion project worth US$260 million by Taiwan’s Formosa Group.

(Source:SGT)