The Ministry of Planning and Investment was quoted by the Vietnam News Agency as saying that foreign direct investment (FDI) in culture, healthcare, education, post, telecoms, shipping and civil aviation will be welcome.

This is one of the measures the ministry will take this year and next to attract more FDI after it proposed them at a monthly Cabinet meeting for January at a time when the economic outlook remains bleak.

The ministry underscored the important role of FDI in the country’s development, with disbursements amounting to US$23.6 billion over the past three years.

The proportion of FDI disbursements in the country’s total investment soared from 16.2% in 2006 to 24.8% in 2007.

However, poor infrastructure such as power and water supply, roads and ports is one of the major hindrances to FDI attraction, particularly in the southern focal economic zone which comprises HCMC, Dong Nai, Binh Duong, Ba Ria-Vung Tau, Tay Ninh, Long An, Binh Phuoc and Tien Giang.

Development of infrastructure for newly established economic zones in central Vietnam like Chan May, Nhon Hoi and Nam Phu Yen has been slow as well, thus obstructing FDI disbursement.

The ministry will undertake a comprehensive review of existing infrastructure development plans, and announce new plans for a period from now and 2020 so that they can be used as a basis to call for investment.

Capital resources will be prioritized for infrastructure development, especially water supply and drainage, environmental hygiene, expressways, national railway networks particularly the one for connecting seaports and mineral mines, solar power, ports and port logistics, according to the ministry.

A meeting is scheduled for this Wednesday between the ministry, the Government Office, the ministries of transport and finance, leading state-run firms and banks to find ways to spur investment in vital road projects, such as those in the forms of build-transfer (BT) and build-operate-transfer (BOT).

The meeting will review existing BT and BOT projects and decide whether to put some of them on the list of projects to call for FDI.