Foreigners pour USD11.5 billion into construction

Since the Foreign Investment Law was passed in 1987, Vietnam's construction sector has received USD11.5 billion for 1,196 foreign direct investment (FDI) projects. The law was passed a year after Doi Moi (Renewal) policy was announced in 1986.

Since the Foreign Investment Law was passed in 1987, Vietnam's construction sector has received USD11.5 billion for 1,196 foreign direct investment (FDI) projects. The law was passed a year after Doi Moi (Renewal) policy was announced in 1986.

The sector has come third in attracting FDI capital nationwide, accounting for 6.5 percent of the projects and 4.5 percent of investment capital.

The average capital for a construction project in the 29 years since 1987 has been USD9.64 million, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

The Republic of Korea was the leader with 587 projects, worth USD2.4 billion. This accounted for 49 percent of the nation's total construction projects and 20.9 percent of investment capital.

Singapore ranked second with 101 projects totalling USD1.9 billion, followed by Taiwan (China) with 109 projects worth USD1.5 billion.

Foreigners pour USD11.5 billion into construction

Photo for illustration. (Source: VNA)

Other large foreign construction investors included Japan, Malaysia, British Virgin Islands and Hong Kong (China).

HCM City was the city that attracted the most FDI for construction. It has more than 377 projects and USD3 billion in investment capital, accounting for 31.5 percent of projects and 26.5 percent of investment capital.

Hanoi was second, attracting USD2 billion in capital for 527 projects, accounting for 44 percent of projects and 17 percent of investment capital.

The northern city of Hai Phong was third with 18 projects and USD1 billion in capital, accounting for 1.5 percent of projects and 9 percent of investment capital.

Other provinces involved included the southern province of Ba Ria - Vung Tau, Binh Duong, Dong Nai and the northern province of Quang Ninh.

In term of investment forms, 49 percent of construction projects in Vietnam are 100 percent foreign invested projects, 43 percent are joint ventures, and the rest involve joint stock companies and business co-operation contracts.

The capital inflow was expected to rise in the near future as new open economic policies take effect, especially the revision of laws involving construction, investment and enterprises, said FIA.

These revisions would create more favourable conditions for foreign investors to join Vietnamese construction and real estate market, added the agency./.

VNF/VNA

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