The MPI said since the Law on Foreign Investment was issued in 1987, around 9,494 foreign-invested projects have been operating in Vietnam with a total registered capital of more than US$132.3 billion. In the past three years alone, the registered capital of FDI projects is equal to that of the last 20 years put together.

FDI has become an important part of Vietnam’s economy, accounting for 37 percent of industrial production value, 50 percent of total export turnover and 16 percent of the country’s GDP. Each year, FDI businesses contribute more than US$1 billion to the State budget.

Nguyen Noi, head of Construction and Industry Department under the MPI warned that FDI attraction will be affected if Vietnam does not develop support industries.

Vietnam has encouraged investment in hi-tech and large-scale projects, however, it has not offered incentive policies to subsidiary companies of big foreign groups specialising in electronics and information technology.