HANOI: Vietnam forecasts disbursed foreign direct investment to rise to a record this year as the government steps up efforts to attract factories to the South-east Asian nation.
Disbursed FDI will exceed US$16 billion (RM68.5 billion) this year, Deputy Minister of Planning and Investment Dang Huy Dong said in an interview in Hanoi yesterday. Pledged foreign investment will increase up to US$28 billion, he said.
Vietnam is shrugging off the uncertainty over the Trans-Pacific Partnership as low wages and a young workforce help retain its allure as a manufacturing base. The World Bank predicts economic growth will exceed 6 per cent until 2019, among the world’s fastest.
Competition in South-east Asia is intensifying as governments from the Philippines to Indonesia ramp up infrastructure spending.
In Vietnam, Prime Minister Nguyen Xuan Phuc last week formed an economic advisory team, which includes economists from universities in the US, Japan and Singapore to help craft policies to boost growth. The central bank last month cut key policy interest rates for the first time in three years.