The calculation is realistic following positive signs that Vietnam recently joined the world trade body and successfully organised the 14^th APEC Economic Leaders’ Meeting in Hanoi. In a short period of time, several foreign investors decided to increase or pour huge amount of investment capital into Vietnam. As such the Intel Group of the US signed a contract to increase its investment capital to US$1 billion, while POSCO Group of the Republic of Korea decided to invest in US$1.4 billion in a steel production mill in Vietnam.

Ayumi Konishi, Country Director of the Asian Development Bank in Vietnam attributed the high influx of foreign investment in Vietnam recently to the country’s high economic growth, great potential and political stability. Those advantages, plus its recent admission to the WTO, will turn Vietnam into a promising investment destination for foreign groups, he said.  

For the US – the world’s largest economic power, the prospect of its increased investment activities in Vietnam will become realistic after the US Congress approved permanent normal trade relations (PNTR) status with Vietnam last week – the final hurdle to relations between the two countries.

Michael Marine, US Ambassador to Vietnam, said that US investment has now hit US$4 billion and the figure double next year as the US is putting final touches on three or four large projects in Vietnam. He said many US investors are exploring the Vietnamese market and 2007 will be a good start for increased trade between the two countries.

For its part, the Vietnamese Government, ministries, agencies and localities are aware of new opportunities and challenges for the country of more than 80 million people after it joined the WTO. The most important thing is that the Government should quickly overcome difficulties including poor infrastructure facilities, an inefficient administrative system and poor human resources. These are hurdles to attracting foreign investment. A foreign investor even said these are hurdles to turning their commitments into realistic investment flows.

The success of the Consultative Group Meeting for Vietnam in Hanoi on December 15-16 has helped consolidate donors’ trust in the Government’s strong resolve. Prime Minister Nguyen Tan Dung said at the meeting that the government will give priority to using ODA sources for large-scaled infrastructure construction projects in big cities, such as Hanoi and Ho Chi Minh City, inter-regional transport routes like the trans-national highway, the two corridors-one economic beltway project, the East-West road project in the central region, as well as the transport system in the Mekong River delta. These projects, he said, will help Vietnam achieve high economic growth and realise hunger and poverty reduction efforts in a sustainable manner. He also assured donors that the Vietnamese Government has done and will do its best to utilise ODA sources effectively for national economic development.

On the back of those positive signs, many analysts expect Vietnam will enter a new period of economic development - a period of deeper integrating into the world economy.