(MENAFN- Qatar News Agency) The Socialist Republic of Vietnam's economy expanded by 5.42%, with one fifth of the GDP contributed by foreign-invested companies in 2013.
With pledges totalling $21.6 Billion, Foreign Direct Investment (FDI) in 2013 far exceeded the estimate of $13-14 Billion, the Vietnam government's official news portal sai
The first half or 2013, FDI disbursement hit$5.7 Billion, a rise of 5.6% from a year earlier and equal to 54.8% of the 2012 tota
During the same period, FDI pledges reached $10.5 Billion, up 15% from a year ago and equal to 80% of the 2012 tota
That momentum was maintained in the final months to bring FDI disbursement and pledges to $11.5 Billion and $21.6 billion respectively, respective rises of 9.9% and 54.5
The FDI also saw an improvement in quality with the majority of capital poured into high-tech and manufacturing project
A number of large projects were granted investment licences in 2013, including two Samsung manufacturing facilities in Thai Nguyen and Bac Ninh provinces with a total capital of $3 Billion, the $2.8 Billion Nghi Son Refinery project in Thanh Hoa province and the Phu Yen-base
Vung Ro Refinery project worth$3.18 Billio
In addition to capital, FDI was also considered an important channel for attracting high technology from advanced economies in order to innovate the industry and enhance the technological level of Vietnamese companies and the broader economy. Vietnam will fail to narrow the development gap with other countries and attain industrialisation and modernisation goals without advanced technology, the government report said. Given that only around 5-6% of foreign companies currently employ high tech in their Vietnam-based production processes, investment projects by Samsung and Nokia have set a new trend. Foreign-invested projects are shifting from product assembly only to include both component manufacturing and product assembly. Achievements in FDI activity this year were largely a result of improvement in the Government's management capacity and the dynamism of foreign-invested firms, the report concluded.
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