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Authorities in Vietnam Concerned About Gloomy Outlook for FDI in 2010
Authorities in Vietnam Concerned About Gloomy Outlook for FDI in 2010

Despite the fact that the global economy has now finally managed to pull itself out of recession and is slowly progressing towards definite growth, provincial authorities are much concerned at the gloomy outlook which seems to have gripped the coming year's Foreign Direct Investment sector.

The main hurdles for the country today seem to be threats posed to the nation's investment sector by factors such as land clearance, poor infrastructure and red tape, in addition to a dearth of credit as all major banks are still very cautious about lending.

"Foreign investors will still see difficulties in mobilizing funds for developing projects. The economy’s internal weaknesses like poor infrastructure, complicated administrative procedures and difficulties in site clearance are to blame", said Huynh Van Trai, director at the Department of Planning and Investment in southern Binh Duong province, one of Vietnam's top receivers of FDI, while stressing that the slow economic recovery is not the only hurdle in the country's FDI, as previously estimated.

Official figures shared by the Ministry of Planning and Investment have estimated that the FDI disbursement for the current year will be about $9-10 Billion, as opposed to last year's figure of $11.5 Billion. For the coming year as well, the figure will be low, hovering around $10-11 Billion.