However, in many cases, foreign investors only register investment projects in Vietnam, and seek capital from domestic sources. An analyst said that in these cases, ‘foreign invested projects’ do not mean ‘foreign financed projects’, and therefore, the FDI does not have much significance. Phan Huu Thang, a renowned expert on foreign investment, and former head of the Foreign Investment Agency (FIA), said in principle, foreign invested enterprises (FIEs) must not use domestic capital for their production. Vietnam has been trying every possible way to attract foreign direct investment (FDI) because it needs more capital for economic development. However, in many cases, foreign investors only register investment projects in Vietnam, and seek capital from domestic sources.

Source: VietNamNet News August 26, 2016 08:03 UTC