Vietnam achieves 2013 foreign investment goal

Foreign direct investment in Vietnam has exceeded the country's full-year target of US$13-14 billion, data compiled by news website Saigon Times showed.

The Foreign Investment Agency had tallied $12.63 billion as of late last month.

In the last week alone, investment has risen with at least an additional of $1.7 billion, to exceed $14.3 billion in total.

The latest funds included $170 million for three Japanese projects in the Ho Chi Minh City, a $100 million infusion in tire manufacturing by South Korea’s Kumho Asiana in the southern province of Binh Duong, and a $1.5 billion investment in a high-tech complex by South Korea’s LG Electronics in the northern city of Hai Phong.

The total investment marks the second straight year that Vietnam has achieved its FDI target after missing it the two previous years.

Despite growing FDI, analysts said the country’s business environment was less competitive compared to other Southeast Asia countries.

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In a recent interview broadcast on Vietnam Television, Minister of Investment and Planning Bui Quang Vinh said the country was losing to its neighbors like Indonesia and Thailand in attracting foreign investment.

He said Vietnam would face problems in the coming years if it continues to try to attract high-tech projects without upgrading its poor infrastructure and streamlining its complicated formalities.

Category: BUSINESS