“Though the economy may be likely to witness some problematic issues in the short-term, foreign investors, in evaluating the country’s potential, still possess positive expectations regarding Vietnam’s growth in the mid-term and long-term,” Hoa told a Vietnam International Investment Conference in Ho Chi Minh City on Nov. 11.

She pointed out that one of Vietnam ’s most significant achievements over the past 15 years has been to develop free trade in conjunction with the attraction of foreign direct investment (FDI) to the country.

Regarding the importance of FDI capital, Deputy Minister of Industry and Trade Le Duong Quang said that when foreign investment into Vietnam is distributed proportionately with industry structure and the national development strategy, Vietnam will develop as an increasingly prosperous economy.

Quang’s view was shared by Deputy Minister of Planning and Investment Nguyen Chi Dung, who revealed that foreign-invested enterprises currently contribute 45 percent to the country’s total import-export turnover and employ 1.42 million local workers.

However, Dung stressed, Vietnam needs to deal better with issues relating to the investment environment, environmental protection, technology, land use, energy and uncontrolled licensing.

He said he hoped that the government’s efforts to improve the investment and business environment will create more favourable conditions for foreign investors.

The Chairman of the European Chamber of Commerce in Vietnam , Alain Cany, said that though Vietnam ’s economy overheated in early 2008, its economic indexes improved over the third quarter of the year.

Having spoken of the challenges facing the Vietnamese economy amidst the global economic crisis, the EuroCham chairman said “Foreign interest in Vietnamese equities is still strong, despite recent outflows. Vietnam continues to be one of the few emerging economies with a net inflow of equity portfolio investment this year.”