Efforts intensified on disbursements

Deputy director of the Ministry of Planning and Investment's Foreign Investment Agency Nguyen Thi Bich Van talked with Tuoi Tre (Youth) newspaper about the decline in foreign investment in major building projects in the country.

Why are inspectors being sent around the country?

Cities and provinces have been granting investment licences to carry out major projects over the last three years. Many of these projects are worth more than US$1 billion in terms of investment capital. We are gathering information about major projects worth about $70 billion. Funds need to be well-disbursed. These projects will improve the image of Viet Nam.

However, it is regretful that funding has been slowly disbursed. A lot of investment capital has been tied up. In many cases, not a single penny has been spent. Authorities are well aware of the situation and have been conducting their own investigations. In the worst cases, investment licences have to be revoked. It is not just a question of money. Investors need to be reassured that their money is being well spent. They also need assistance in implementing their projects.

It is estimated that $8.4 billion has been disbursed so far. What is the Foreign Investment Agency's opinion on this?

It is difficult to be accurate about these figures. A number of major projects in HCM City, Binh Duong and Ba Ria-Vung Tau are still in the planning stages, and their worth can only be estimated. When that happens, over-estimates are usually made.

What is the reason for the slow disbursement?

The financial crisis is partly to blame. That has resulted in investors encountering difficulties with honouring their pledges. In other cases, there have been technical problems to blame. It is the duty of the local authorities to resolve these issues.

In some cases, investors in major projects have asked for more time to implement their projects. However, that is not always possible.

Most of the major projects in the country involve real estate and the petrochemical industry. Meanwhile, smaller projects have tended to focus on services rather than manufacturing. What is your view on this?

There is no imbalance between investment in manufacturing and services. It is true, however, that investors in the south of the country have tended to focus on services and distribution rather than production. Viet Nam is looking to attract more investment in services that yield the most profit. — VNS