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FDI to focus on subsidiary and service industries
Highlighting the figure of 21.48 billion USD for 2009’s FDI in the context of the global economic downturn, Deputy Head of the Central Institute for Economic Management (CIEM) Vo Tri Thanh expressed his concern over too much FDI for the realty sector.
This over-investment has caused fluctuations in the sector which has resulted in unnecessary, negative changes within it, having repercussions that have affected the macro-economy, he stressed.
According to statistics from the Ministry of Planning and Investment’s Overseas Foreign Investment Department (OFID), the realty sector ranked second in attracting FDI last year with a total capital of 7.6 billion USD, accounting for almost 35.4 percent of the country’s FDI.
The result demonstrated the huge potential of Vietnam ’s realty market, especially in tourism realty, Thanh said. However, that trend was only characteristic of the first development period of the economy. Now FDI attraction should focus on the services sector and other areas of production that can help promote the economy’s competitiveness such as subsidiary, processing and other services industries.
Sharing this view, Director of the National Center for Socio-Economic Information and Forecast Le Dinh An said that it is time to make FDI attraction work in close combination with the economic restructuring process.
A number of investors from the Republic of Korea (RoK) and Japan are conducting surveys on the Vietnamese market and keeping a close watch on the development of many key economic sectors, including the subsidiary industry, to carrying out their investment plans in a timely manner so as to enhance their presence in the country.
To direct the flow of FDI into subsidiary and service industries, many international experts suggested that Vietnam continue creating a more attractive investment environment than other neighbouring countries. They suggested the country accelerate administrative reform, upgrade infrastructure and improve the quality of human resources.
The OFID forecasted that Vietnam is capable of attracting 22-25 billion USD in FDI this year and disbursing around 10-11 billion USD-year-on-year rises of around 10 percent in the two fields.
VietNamNet, VNA
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