FDI from the US into Vietnam remains modest
At many political and economic events, American officials and businesses all have said that they believe the US would be the top investor in Vietnam in the near future. But this has yet to happen.
The US is the ninth biggest foreign investor in Vietnam
Energy Capital Vietnam from the US and the Bac Lieu provincial People’s Committee have signed an MOU on cooperation to develop a liquefied natural gas (LNG) supply project and a gas-fired thermal power plant in a coastal area of the province.
The 3,200 MW power plant project has investment capital of $4 billion, or VND91.4 trillion.
There had been no large-scale FDI project registered so far this year until the MOU was signed.
As of April 2018, the US was the ninth largest foreign direct investor in Vietnam out of 126 territories and countries with 879 valid projects, capitalized at $10 billion in total.
In April alone, Vietnam licensed $166 million worth of US invested projects, including $60 million poured into capital contribution deals.
American investors are believed to have the largest idle capital in the world. The ninth position is not a worthy position for the US.
Nguyen Mai, chair of the Vietnam Foreign Invested Enterprises’ Association (VAFIEs), said: “The investments from the US and Europe are still modest if compared with their FDI in other countries and in ASEAN countries.”
Meanwhile, Vietnam has been continuously praised by the international organizations as an attractive destination point for investors. Increasing bilateral investments is the topic of discussion at all meetings of heads of states.
Minister of Planning and Investment Nguyen Chi Dung said at an important event held recently that Vietnam is a playing field with a large scale and linkage.
“I believe that US investors will have to consider investments in Vietnam, or they will lose they influence in the international game,” he said.
“I believe that the US would soon consider coming back to CPTPP,” he said.
According to Vo Hong Phuc, former Minister of Planning and Investment, complicated administrative procedures and embezzlement discourage investors.
“Embezzlement is a big problem. American and European investors aren’t used to the so-called ‘lubricating fees’ like developing countries in Asia,” he said.
Vietnam, which is drafting a strategy on FDI to 2030, has been advised to lure more investors from the US and the EU to diversify FDI capital sources.
According to the Ministry of Planning and Investment, total newly registered, additional foreign investment capital reached $35.88 billion in 2017, 44.4 percent over the previous year.
Thanh Lich, VNN