Saturday, October 20, 2007

Vietnam ranks 6th highest in world for foreign direct investment

ietnam is ranked sixth among the most attractive locations for FDI in the 2007-2009 period, according to the World Investment Report released on October 18 by the UN Conference on Trade and Development.

China and India were the top two most favoured trans-national corporations (TNCs) FDI destinations.

The results were based on UNCTAD’s survey of TNCs all over the world.
The UNCTAD World Investment Prospects Survey 2007-2009 looks at upcoming trends in FDI among the world’s largest TNCs.

The survey forecasts FDI flows increasing across all sectors over the next three years on the back of continued global economic growth, high profitability and continuing availability of finance.

Total FDI in 2007 is estimated at a new record of US $1.4-1.5 trillion.
The UNCTAD report also cautions of challenges that the world economy has to overcome to reach the FDI attraction targets in the coming years.

These include the sharp increase of current account deficits in developed countries which may lead to changes in foreign exchange rates, causing a negative impact to FDI flows; an oil price hike may also lead to increasing inflation and the dangers that affect the financial market, including instability of the sub-prime mortgage market in the US.