This was announced by Deputy Minister of Planning and Investment Nguyen The Phuong on December 30 at the Ministry’s press conference reviewing the FDI situation in 2011 and making forecasts for 2012.

Phuong said that the total newly registered and additionally increased capital in 2011 reached $14.7 billion, accounting for 74 per cent of 2010’s figure. Industry and construction made up 70 per cent and real estate just 5.8 per cent of FDI, a sharp fall from the previous year.

Singapore continued to take the top spot among Vietnam’s major investors with a total registered capital of $24 billion, followed by the Republic of Korea, Japan and Taiwan.

Ho Chi Minh City remains the locality that has attracted the highest number of FDI projects, capitalized at more than $32 billion, followed by Ba Ria-Vung Tau, Hanoi, Dong Nai and Binh Duong.

In the context of restructuring the national economy and cutting public investment, the inflow of FDI is considered an important resource for national development.

The Vietnamese government has issued an instruction on intensifying FDI management and revised policies related to foreign investment to deal with obstacles to FDI projects in Vietnam.

Regarding FDI attraction in 2012, Phuong said it is imperative to improve the efficiency and quality of State management of FDI. The FDI management will focus on disbursing FDI capital and attracting FDI projects in line with the country’s development plan for the 2011-2015 period, targeting infrastructure construction and green technology.

According to the Ministry of Planning and Investment, the FDI sector has greatly contributed to increasing State revenues thus helping reduce State budget overspending.

Based on international organisations’ assessments, Vietnam is still regarded as an attractive destination for foreign investors.

Vietnam ranks first among ASEAN nations, up three notches in FDI attraction, and is one of the top ten economies of investment attraction according to the World Investment Prospects Survey 2010-2012 conducted by the United Nations Conference on Trade and Development (UNCTAD).