|
|
 |
|
|
|
|
|
|
|
|
|
|
| EU leads way in disbursing FDI in Vietnam |
|
| May 30, 2009 |
|
The EU disbursed about 60 per cent of its committed investment in Viet Nam last year, about four times higher than the average disbursement rate from foreign investment funds.
This was revealed by Sean Doyle, Ambassador and Head of the European Commission Delegation to Viet Nam in Ha Noi May 29.
The EC was introducing its 2009 Trade Counselor's Report, which indicates that the EU continued to be the second largest investor after Japan in terms of total Foreign Direct Investment (FDI) implemented.
It injected about US$7 billion into FDI projects out of the $11.8 billion committed in foreign funds.
Although the EU's investment was smaller than Japan's, the percentage of the disbursed projects was higher.
According to Euro stat, the statistical office of the EC, the EU was Viet Nam's largest export destination, absorbing about $12.2 billion of Vietnamese exports, surpassing the United States' $11.86 billion.
Footwear continued to be the biggest export sector. Last year, despite the economic crisis and anti-dumping duties, footwear products imported from Viet Nam amounted to more than 2 billion euros, an increase of 6.4 per cent over 2007.
Other sectors are catching up, with optimistic increases in value reported in garments and textiles, coffee, seafood and furniture, according to Euro stat.
The EU is the fourth largest importer (7.97 per cent of total imports) after ASEAN, China and Japan. Viet Nam has large trade deficits with China and ASEAN (about $11.12 billion and $ 9.38 billion), while in EU-Viet Nam trade, Viet Nam has a trade surplus of $5.41 billion.
An EU official said the EU and Viet Nam were talking about the possibility of a bilateral FDI negotiation between the two sides.
Fifty-nine per cent of Viet Nam products pay import tax in EC markets compared to 50 per cent for Thailand and lower percentages for several other ASEAN countries.
Recommendations in the report include cutting back red-tape, which is blamed for significantly contributing to the 81 per cent gulf between FDI commitments and disbursement; continuing the pace of trade liberalization, including signing free trade agreements with major trading partners; and further strengthening intellectual property rights and bankruptcy procedures.
It was believed that this would help attract higher quality investment, especially in technology. Further recommendations in the report cover land prices, which it said should be freely determined by the market; and providing full tax deductibility for advertising and promotional expenses.
Green Book
This year's Green Book presents an assessment by a European delegation to Viet Nam and EU trade commissioners on the performance of the Vietnamese economy.
It is considered a reliable and important tool for policy making and a source of information for foreign investors in the Vietnamese market.
According to Doyle, "Viet Nam's priority is to overcome the economic crisis and cement its economic strength. The book help the reform process and allows people to make the best of new opportunities."
(VNS) |
|
|
|
|
|
|
|
|
|
|
|
 
Best View: 800 x 600 resolution with Internet Explorer 4.X or above.
|
|
|