2017: Should breakthroughs in FDI be expected?

	On 15 December, 2016: Trade surplus of more than $US 2.59 billion
	HCM City absorbs US$3.7 billion in FDI in 2016
	FDI pledges decline for third straight month

Disbursement of FDI in 2016 with good results showed that the factors related to the disbursement were more positive, more progressive. Artwork: H. Anh

According to the data announced by the Ministry of Planning and Investment (MPI), to December, 2016 Vietnam attracted a total FDI capital of$US 24.4 billion due to the $US 3.425 billion of contributed capital and share purchasing through M&A activities of more than 2,500 enterprises and economic organizations. Actually, the total FDI capital registered in 2016 was nearly $US 21 billion, 10% lower than the FDI capital of 2015, and far from the target of $US 25 billion set for 2016. Despite not reaching the target of registered capital, one thing is worth noting that 2016 was the first year thatthe disbursement of FDI capital hit nearly $US 16 billion, a record high so far. If the registered capital decreased by 10%, in contrast, the implemented capital increased by 10% compared to 2015. Prof. Nguyen Mai, chairman of the Vietnam Association of Foreign Invested Enterprises stated that this was a good figure and indentified that the FDI attraction in 2017 will be in good growth and the registered capital and implemented capital are forecasted to increase by 10-12% compared to 2016

Regarding the prospects of FDI attraction in 2017, a representative of JLL Vietnam Company, a Group specializing in investment management and real estate services, said that the FDI attraction in 2017 of Vietnam is expected to remain positive. This is due to the existing advantages of Vietnam on economic and political stability compared to other countries in the region, the country's efforts in signing and joining bilateraland multilateral international treaties and expectations on the positive changes in major and new economies in the new year.

Meanwhile, expertLuuBich Ho said that there are many complications in 2017, so we should not expect too much on breakthroughs in 2017, and the FDI attraction is also in that context.

This expert said that FDI does not keep on growing, the world market is being restructured, foreign investors will look for more potential markets, more effective markets and transfer from the invested countries into another country to get more benefits, not to mention that if the economic situation becomes better, the proportion of domestic economy and domestic investment will also increase.

The expert LuuBich Ho noted that in the coming years, FDI may not reach the estimates, due to from 2016, Vietnam had refinement changes and tried to attract high-quality FDI capital ( about the technology, efficiency, environmental protection). However, this expert also said that this does not mean decreasing trend but movements. If we can remove these difficulties in 2017, the FDI attraction will continue to increase.

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"In the current FDI attraction, the number of Companies with 100% foreign capital still accounts for a large proportion, so it needs to increase the number of joint ventures to increase Vietnam’s internal resources. Many foreign experts commented that Vietnam is very positivein foreign integration, but is poor in domestic integration, that means the connection between FDI with Vietnam Enterprises is low. This is a concerned matter to change ", the expert LuuBich Ho emphasized.