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Speed up disbursement process of FDI projects


The total capital used in a certain period of time is one of the criteria to evaluate the effectiveness of FDI projects, therefore, the on time capital disbursement shows the success of investment preparation, building and bring into practical processes. The above-mentioned factors are the results of the participation of Governmental and provincial agencies to create favorable investment condition for the foreign investors to invest in Vietnam


To implement the policy of speeding up FDI capital disbursement, from the beginning of 2008, almost all Governmental and provincial agencies has been carrying out all the necessary procedures to foster FDI capital disbursement. Some provinces focused on ironing out snags for investor, especially clearing land, recruiting labors, and supplying input material. In fact, projects that invest in industry fields are often done quickly and the disbursement rate of FDI capital normally reaches over 50% of total registered FDI capital. For example, Vietnam- Singapore industrial park is the typical model of attracting and implementing FDI capital in . In the first 8 months of 2008, there are total 30 newly registered FDI projects with total value of USD 330 million, in which nearly USD 200 million was disbursed accounted for 60% of total registered.

According to Foreign Invest Department (Ministry of Planning and investment), in the first 8 months of 2008, including newly registered and operating capital, Vietnam has attracted USD 47.15 billion, 4.5 times higher than the same period last year. Value of operating capital of the current projects achieved USD 8 billion, increasing by 42.9% against the same period last year. However, if compare between total operating FDI capital with registered one (USD 8 billion / 47.1 billion), it can be said that the rate of disbursement was rather low, only 6.8%, didn’t reflect well the real situation of the implementation of FDI projects during the first 8 months of 2008. This imbalance is the result of different method of comparison between total register FDI capitals with the real value of operating capitals. Each province has its own way to manage and allocate FDI capital for different using purposes, that led to the fact that many projects which are allowed to implement, but the disbursement process is rather late, especially are projects invested in real estate, tourism service or heavy industry, etc., therefore progress of the whole project also come to standstill, mainly due to the difficulties in land clearing and transferring to investors, or investors didn’t have enough financial and technical ability to continue the projects.

To speed up the FDI capital disbursement process, Ministry of Planning and Investment, together with provinces authorities to check plans and real situation of registered and valid projects to have suitable measures to settle those difficulties.

Among those measures, it is necessary to settle the stagnation in compensation and land clearance at provincial levels, at the same time create favorable condition for investing , building infrastructure for both inside and outside the industrial parks, improving the quality of public services, assisting investors in finishing necessary documents to complete projects , etc…

For some projects that seem to be unable to implement, some provinces suggested to withdraw investment licenses, change purpose or investors. Some pending projects in Ba Ria-Vung Tau, Da Nang and Chu Lai Economic Park … are settled by this solution. Thien Huong stainless steel Co., Ltd () with USD 700 million registered investment capital hasn’t been started after 3 years getting investment license. Some big pending projects in Ba Ria-Vung Tau are also withdrawn investment licenses such as Vung Tau –Paradise joint-venture in 1991 with USD 97.2 million, Thi Vai International Port in 1997 with USD 110 million.

Together with effort to improve the quality of investment environment of provincial authorities, investors and FDI enterprises play important roles in preparing investment , speeding up project implementation process, including the newly registered projects as well as production extension ones. 

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