Foreign direct investment (FDI) inflows to developing and transition economies has continued to increase and offer an important development opportunity for many emerging economies, according to the World Investment Report 2006 released by the United Nations in Hanoi on October 17.
FDI inflows to Vietnam have followed this trend, with receipts exceeding US$2 billion in 2005. Based on the magnitude of the 2005 FDI flows, Vietnam ranked tenth among 10 leading economies in South, East and South-East Asia.
UN Development Programme Deputy Resident Representative Subinay Nandy said “the most recent increase of FDI inflows reflects investors’ confidence in Vietnam’s economic future.” But the report also suggests that there is room for improvement in Vietnam’s investment environment. Better infrastructure and telecommunications facilities, more highly skilled workers and stronger national technology policies would make Vietnam more attractive and would enable Vietnamese firms to make better use of FDI”.
The World Investment Report 2006 is prepared by the United Nations Conference on Trade and Development (UNCTAD) and released annually since 1991. Every year, the report releases the latest statistics on FDI trend in the world. In this year’s report, China was again the largest recipient of FDI in such regions as South, East and South East Asia with its inflows increasing to US$72 million, followed by Hong Kong, Singapore, the Republic of Korea, India, Indonesia, Malaysia, Thailand, Pakistan and Vietnam.
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