To date, Vietnam has so far had more than 10,500 foreign-invested projects in valid capitalised at over US$155 billion. More than 4,000 foreign-invested enterprises have been put into operation, contributing more than 40 percent of the country’s total industrial production.

Notably, total registered FDI capital in 2008 hit more than US$64 billion, a three fold increase over 2007 while disbursed FDI capital reached a record high of US$11.5 billion. This proves that Vietnam remains an attractive investment destination in the context of the global financial crisis.

FDI enterprises have helped speed up the process of national modernisation and industrialisation, apply advanced technology, and generate steady jobs and stable income for labourers.

However, because of the global economic downturn, it will be very difficult for Vietnam to maintain this upward trend in 2009. The rate of disbursed FDI capital against registered FDI capital is expected to decline compared to 2008. Many licensed projects will be either delayed or put on hold or cancelled.

Phan Huu Thang, head of the Foreign Investment Agency under the Ministry of Planning and Investment says that despite difficulties in the country and the world, the trend of investing in Vietnam remains positive in 2009 as the country has the advantage of socio-political stability. He emphasises that there will be good prospects for medium and long-term FDI projects in Vietnam through 2010.

However, FDI in 2009 is forecast to decrease remarkably compared to 2008, standing at around US$20 billion and disbursed capital at US$11-12 billion.