Vietnam lured 31.6 billion U.S. dollars in registered foreign direct investment (FDI) in the first half of this year, but the disbursed capital stood at just about five billion at the same time. The gap made many people ask whether Vietnam has favorable condition for actual capital investment.
According to figures from the Ministry of Planning and Investment (MPI), FDI disbursement made up between 50 and 80 percent of the nation's newly registered capital in the 2000-2005 period. However, the ratio fell to 4.1 billion out of 10.2 billion in 2006, while eight billion out of 21.3 billion in 2007.
For the past two years and a half, the growth in newly registered FDI has been much faster than that of the disbursed capital, according to the MPI Foreign Investment Agency.
Disbursement of FDI refers to actual capital investment made following an earlier commitment by foreign investors in the form of registering for a investment license. It is therefore a more accurate measure of the real impact of FDI on the national economy.
It is understandable that after investors obtain the license for the project, it takes a certain period of time to prepare for project implementation, like site clearance, mobilizing capital and recruiting people, but some projects in Vietnam takes too long and the gap between FDI registration and disbursement stands huge now.
The problem reflects the absorbability of the Vietnamese economy, according to a recent MPI report. Bottlenecks like poor infrastructure, shortage of electricity and skilled personnel still fail to match the economic development, said the report.
Inadequate power supply in hot summer days is a big headache for companies in Vietnam. Last month, a great number of Vietnamese provinces suffered from electricity cut. Electricity of Vietnam, the country's main power producer, said that the country now lacks between 2,000-2,500 MW of electricity and the power shortage will last until the end of July.
Vietnam is also faced with shortage of qualified personnel. "It is hard to find Vietnamese employees who has IT background and speaks English," said Tang, an official of a foreign IT company in Vietnam. "The qualified personnel are not enough.'
