Vietnam investment drops 44%

Vietnam investment drops 44%

HANOI (Reuters): Foreign investment approvals in Vietnam fell
44 percent year-on-year in the first seven months of this year to
US$440.5 million, official media said on Wednesday.

The Vietnam News Agency said 156 new projects had been
approved during the seven-month period. It gave no disbursement
figure for the period.

Foreign investment in Vietnam has plunged in recent years,
amid complaints of over-regulation, bureaucratic inconsistency,
high costs, corruption and discrimination.

Foreign investment inflows fell to around US$500-$600 million
a year in 1999 from peaks of around $2.8 billion a year in 1996
and 1997. The 1999 level was the lowest since 1992.

Wednesday's Saigon Times Daily newspaper quoted Deputy
Minister of Planning and Investment Tran Dinh Khien as saying
Vietnam expected to realize around $2.5 billion of foreign direct
investment in 2001.

The state-run paper quoted ministry officials as saying
Vietnam was aiming for growth of 7.0-7.5 percent next year, which
would require total investment of $10 billion, a 16 percent
increase over the estimate for this year.