FDI registered capital down, disbursed capital satisfactory

FDI registered capital down, disbursed capital satisfactory

There is one piece of bad news and one piece of good news. The former one is the decrease in the newly registered foreign direct investment (FDI) capital, while the latter is the active sign in the capital disbursement.

The report by the Ministry of Planning and Investment MPI about the FDI projects and disbursement showed that foreign investors have been speeding up their projects, which, in the eyes of the state management agency, is the most important factor in FDI attraction.

Dau tu has reported that the Bridgestone tyre manufacturing project of a Japanese investor with the investment capital of 574.8 million dollars would be kicked off on July 2, when the construction of its factory would start in Dinh Vu Industrial Zone in the sea city of Hai Phong.

This would surely make the leaders of Hai Phong City feel satisfactory. Very soon after receiving the investment certificate in February 2012, the Japanese investor kicks off the project, fulfilling its commitments.

The first phase of the project is expected to be completed by the first half of 2014, while the second one would be completed by the first half of 2016. The factory would have the capacity of 24,700 tires per day.

This means that the report about FDI capital disbursement for the next some months would count on the capital from Bridgestone project, which, once again, can affirm the active changes in the FDI capital disbursement.

A MPI’s report released on June 26 showed that 900 million dollars worth of FDI has been brought into implementation, raising the total FDI capital disbursed in the first six months of the year to 5.4 billion dollars, higher than the 5.3 billion dollar level of the same period of the last year, and equal to that of 2010.

The moves by foreign investors can prove their strong commitments about making long term investment in Vietnam. Even Nokia, the mobile phone manufacturer, which is facing big difficulties in the global market and has to cut down 10,000 workers, has been moving ahead with the implementation of its mobile phone factory in the northern province of Bac Ninh.

According to Ivan Hurt, general director of Nokia Bac Ninh mobile phone factory, everything has been done as scheduled since April 2012, when the construction began with the total disbursed capital of 15 million dollars so far.

He has committed that the investor would carry out the next steps of the project in accordance with the pledged timetable, and that the factory would become operational as initially planned.

The factory has been projected to be put into operation by 2013.

Samsung Electronics Vietnam committed to disburse all the registered capital of 670 million dollars for the first phase by 2015, before raising the investment capital to 1.5 billion dollars to build Samsung Complex. Meanwhile, the latest report of the company showed that the disbursement has been fulfilled three years ahead of the deadline. It is estimated that the total disbursed capital by the end of June has reached 684.7 million dollars.

Thoi bao Kinh te Saigon has quoted its sources as saying that the target of having 10-11 billion dollars to be disbursed in the whole year 2012, set up by MPI, may come true.

However, analysts have also warned about the decline in newly registered capital. In the first six months of 2012, the foreign investors only registered the total capital of 4.76 billion dollars, a sharp fall of 24.6 percent over the same period of the last year. If counting on newly registered capital and the additional capital for operational projects, the total FDI capital in the first half of the year was lower by 27.7 percent.

vietnamnet