HANOI -- Vietnam forecasts disbursed foreign direct investment to rise to a record this year as the government steps up efforts to attract more manufacturing.
Disbursed FDI will exceed US$16 billion this year, Deputy Minister of Planning and Investment Dang Huy Dong said in an interview in Hanoi on Thursday. Pledged foreign investment will increase up to $28 billion, he said.
“FDI growth is very impressive so far this year and we expect it to continue,” Dong said. “We aim to draw more FDI into areas including export-oriented, energy and high-technology” sectors by building a more business-friendly environment, 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% until 2019, among the world’s fastest.
Competition in Southeast 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.