Ready for FDI to roll in during 2011

Were 2010’s FDI disbursement results encouraging?

By December 21, 2010 around $11 billion worth in FDI was disbursed, surging 10 per cent over 2009, of which $8 billion were realised by foreign investors, meeting 2010 set targets.

In terms of FDI attraction, 969 new projects were rewarded with investment certificates with a total registered capital of $17.23 billion and 269 projects seeking capital additions with a supplemental amount of $1.37 billion, bringing 2010 total FDI amount to $18.59 billion, or 82.2 per cent of 2009’s level.

Vast FDI inflows have reportedly poured into property. Is it true?

With one mega-project capitalised at $4 billion licenced in December, property now takes the lead in attracting FDI with $6.84 billion worth in registered capital, representing 36.8 per cent of the total.

However, processing and manufacturing had drawn foreign investors’ particular attention throughout 2010. This field had topped the FDI list up to November. Based on 2010 figures, processing and manufacture took the lead among diverse economic fields in the number of new projects and those seeking supplemental capital with $5.1 billion registered in 2010, accounting for 27.3 per cent of total.

Apparently, FDI inflows into processing and manufacturing fields were kept at a high and stable pace and the trend is foreboded to continue in the upcoming 2011.

What will be the FDI picture for 2011?

FDI attraction will become more selective with priorities given to hi-tech projects using clean and green technologies to produce competitive items, export production and supporting industries’ development.

Closer eyes will be set on projects with latent risks to national defense and security, projects prone to environmental pollution, land intensive projects with low capital scale, super projects in property field, natural resources exploitation projects featuring backward technologies and energy intensive projects.

Especially, investment authorities will accelerate efforts to check the pace of licenced projects. Land intensive projects with delays but failing to show out proper reasons will be subject to severe punishments or having their licences withdrawn to offer opportunities to more capable investors.

With high expectations for a global economic rebound and strong determination to further ameliorating local environment climate we expect 2011’s committed capital will beat 2010’s figure to hit $20 billion, jumping 11 per cent on year and disbursed capital will be around $11-$12 billion of which $8-$9 billion will be implemented by foreign investors.