25/05/2015 15:12 GMT+7 Email Print Like 0

Foreigners pour 11.5 billion USD into construction

Hanoi, May 25 (VNA) - Since the Foreign Investment Law was passed in 1987, Vietnam's construction sector has received 11.5 billion USD for 1,196 foreign direct investment (FDI) projects. The law was passed a year after Doi Moi (Renewal) policy was announced in 1986.

The sector has come third in attracting FDI capital nationwide, accounting for 6.5 percent of the projects and 4.5 percent of investment capital.

The average capital for a construction project in the 29 years since 1987 has been 9.64 million USD, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

The Republic of Korea was the leader with 587 projects, worth 2.4 billion USD. This accounted for 49 percent of the nation's total construction projects and 20.9 percent of investment capital.

Singapore ranked second with 101 projects totalling 1.9 billion USD, followed by Taiwan (China) with 109 projects worth 1.5 billion USD.

Other large foreign construction investors included Japan, Malaysia, British Virgin Islands and Hong Kong (China).

HCM City was the city that attracted the most FDI for construction. It has more than 377 projects and 3 billion USD in investment capital, accounting for 31.5 percent of projects and 26.5 percent of investment capital.

Hanoi was second, attracting 2 billion USD in capital for 527 projects, accounting for 44 percent of projects and 17 percent of investment capital.

The northern city of Hai Phong was third with 18 projects and 1 billion USD in capital, accounting for 1.5 percent of projects and 9 percent of investment capital.

Other provinces involved included the southern province of Ba Ria - Vung Tau, Binh Duong, Dong Nai and the northern province of Quang Ninh.

In term of investment forms, 49 percent of construction projects in Vietnam are 100 percent foreign invested projects, 43 percent are joint ventures, and the rest involve joint stock companies and business co-operation contracts.

The capital inflow was expected to rise in the near future as new open economic policies take effect, especially the revision of laws involving construction, investment and enterprises, said FIA.

These revisions would create more favourable conditions for foreign investors to join Vietnamese construction and real estate market, added the agency.
VNA/VNP