Vietnam top phoice tor investment
JP Morgan Chase Bank has forecast Vietnam’s economy will continue to grow ber this year and the country will become a top choice in the region for investors.
David G. Fernandez, managing director of JP Morgan Chase Bank in Singapore, said Vietnam will be the number one (finance market) in his priority list for investment in 2007. The Vietnamese market has sent out a positive signal for investors and the bank and its clients could increase investment in the country.
Fernandez, who visited Vietnam six times last year to make a country report on Vietnam’s investment environ¬ment, said during his recent visit that the local capital market would under go a lot of changes this year with more companies to issue and trade bonds on the stock market.
There are signs of an economy picking up steadily and growing attractive to foreign investors, he said. Three years ago, the bank’s clients were interested in foreign currency bonds issued in Vietnam but they now pay attention to those issued in Vietnamese dong, as the local market is buoyed by two factors: softer interest rates and ber dong. He forecast the local currency will rise in 2007 and appreciate about 0.5% against the U.S. dollar.
According to Fernandez, with its WTO membership, Vietnam can attract foreign investors through its more liberal policies and the country will become an emerging finance market for foreign investors.
Vietnam’s economy is forecast to grow 8.3-8.5% this year against 8.2% achieved in 2006.
CITY’S IMPORTS IN NOV. ’06
Total U’ 549.4 million, up 1.2% month-on month
Local businesses US$338.4 million, up 1.1%
Foreign businesses US$211 million, up 1.4%
(HCM City Statistics Bureau)
FDI expectation for 2007: US$10 billion
The Ministry of Planning and Investment (MPI) expects to attract US$10 billion in foreign direct investment (FDI) in 2007, buoyed by the record FDI attraction last year and Vietnam’s WTO membership that has boosted investor confidence.
According to its report sent to the Government, the figure includes US$7.5 billion from new projects and US$2.5 billion from existing projects. Its target is based on the possibility of licensing some big projects like an oil refinery in Thanh Hoa Province (US$2.9 billion), an economic zone in Van Phong Bay of Khanh Hoa Province (US$1.5 billion), a steel factory in Thanh Khe of Ha Tinh Province (US$2 billion), a bauxite mining project in Dak Nong Province (US$1.6 billion), an oil refinery in Nhon Hoi Economic Zone of Binh Dinh Province (US$1.5 billion),a thermal power plant in Mong Duong of Tuyen Quang Province (US$1.2 bil¬lion) and some big property projects.
The ministry also expects the realized capital this year to reach US$4.5 billion, up 9.8% on 2006.
Last year, Vietnam attracted US$10.2 billion in FDI capital, the highest ever and far above the target of US$6.5 billion. The amount includes US$7.6 billion of 797 fresh projects and US$2.6 billion in added capital of 439 operational projects. foreign invested enterprises earned total sales of US$29.4 billion.
There are 6,813 valid FDI projects with total registered capital of over US$60 billion in Vietnam. The top five foreign investors are taiwan, Singapore, Japan, South Korea and HongKong, which account for 60,6% of the total investment capital.
TOP FIVE FOREIGN INVESTMENT ATTRACTION IN 2006
City/Province Number of projects Total capital
Ba Ria – Vung Tau 19 US$1,69 billion
HCM City 195 US$1,2 billion
Ha Tay 17 US$805 million
Binh Duong 155 US$709 million
Quang Ngai 1 US$56 million
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