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.