According to the Ministry of Planning and Investment, as of 2008 Vietnam received direct investment capital from 20 out of 27 EU member countries, with total registered capital of $11.8 billion in 798 projects and disbursed capital of $7 billion. The EU’s disbursement has been the second largest in Vietnam after Japan.
Alain Cany, chairman of the European Chamber of Commerce (EuroCham) in Vietnam, said: “Though the EU has just a humble 13 per cent of Vietnam’s total foreign direct investment (FDI) registered capital, as of 2008 the disbursement rate of up to 60 per cent of its total registered capital is a remarkable number showing the seriousness and efficiency of European investment in Vietnam.
“Everyone usually talks about Taiwan or Malaysia as the biggest investors in Vietnam. However, they should also count disbursement of capital, not just registration. European investors have been following through on their promises,” he said.
In 2008 alone, there were 117 new EU projects with $3 billion in registered capital focusing on oil and gas, electricity and water, infrastructure, agricultural product processing, beverages, telecommunication, pharmaceuticals, and healthcare. BP, Shell, Total Elf Fina, France Telecom, and Siemens are some European names currently experiencing success in Vietnam.
A series of CEO delegates in the heavy industry, distribution, consumption and electricity sectors have come to Vietnam for investment initiatives and expansion over the last three months. “Most of them are considering increasing investment in China or doubling investment in Vietnam. “The global crisis might slow some European investment into Vietnam, but currently Vietnam was a popular destination for European companies new and well-established in Vietnam,” Cany said.
Regis of Rolls Royce added: “While it appears the global economic situation is slightly improving, 2009 is still going to be a very difficult year for the European economy and businesses, which will clearly affect the level of investments made in Vietnam in the short term. “In 2010 the US and Europe are likely to emerge from the crisis first, making top sources of investment.”
By Song Huong
