Viet Nam - A Guide for Business and Investment - asean-korea centre

5. Foreign Direct Investment(FDI) in Viet NamCurrent statusSince the introduction of the Law on Foreign Investmentin 1987, leaving aside projects which have expiredor been withdrawn, to date, there have been6,813 active licensed projects with a total registeredcapital of US$ 60.4 billion.By the end of 2006 investors from more than 77countries and territories have invested in Viet Nam.Asia accounts for 67%, Europe 29%, and America4% of the total FDI and other sectors is 7.5%. Topfive countries and territories having invested in VietNam are Taiwan, Singapore, Japan, Korea and Hongkong.These five countries and territories accountfor 58,3% of the licensed projects with a total investmentcapital account for 60,6% of the total foreigninvestment capital of Viet Nam. The next five countriesand territories are British Virgin Islands, France,Netherlands, Malaysia and the USA. These “top ten”countries and territories account for over threequarters of the total licensed projects and foreignregistered capital in Viet Nam.FDI Flow into Viet Nam in the period 1988 - 2006From 1996 to 2006 there has been a tendency towardsinvestment in producing goods for export, infrastructureconstruction, producing import substitutesand in labour-intensive industries. There are more than4,566 projects in the manufacturing and constructionindustries with a total capital of about US$35,4 billion,accounting for 61,89% of the registered capital.FDI Distribution by Sectors by 2006Banking & Finance 6%Culture, health & education 1%Construction 8%Transport,communication & post 3%Office building& appartment 5%Services 2%Hotel & tourism 6%Agriculture & forestry 7%Food industry 6%Infrastructurefor IZ and EPZ 7%New urban construction 2%Heavy industry 27%Oil & gas 3%Light industry 17%PART II. THE ECONOMYViet Nam - A Guide for Business and Investment 23